EV Resources shares boom amid China moly exports ban

A total of 83 holes have been drilled at the project to date including a whopping 416-metre intersection from surface grading 0.47 per cent copper and 0.19pc molybdenum. Another 89.4m hit starting 6.5m from surface ran at 0.39pc copper and a massive 0.62pc molybdenum.

High-grade molybdenum is generally considered to be ore containing metal concentrations above 0.2pc. Parag’s numbers so far are as high at 0.62pc, suggesting its results fit into the ultra-high-grade category.

EV Resources managing director Hugh Callaghan said: “It was inevitable that molybdenum would sooner or later be subject to export restrictions from China, and as mines around the world age and deepen and grades deplete, it appears molybdenum will become a metal that takes on a strategic significance.”

Callaghan said with intersection widths of more than 400m from surface coupled with high copper grades enriched with massive amounts of molybdenum, Parag bears all the hallmarks of an economically viable project, which could become critical to future global supplies.

Adding to its strategic advantage, the project has access to water and hydroelectric power and is positioned just two hours’ drive from Peru’s newly opened Chancay bulk port.

Management appears to have compelling evidence to back up its claims saying the company has already been approached by multiple molybdenum roasters in the US and Latin America, reflecting a growing interest in alternative supply sources.

As a result of these increased urgent enquiries, EV Resources is now exploring funding options for the next phase of drilling while it continues discussions with molybdenum processors in the Americas.

The geopolitical landscape surrounding critical minerals is shifting and China’s latest move has highlighted just how exposed the West is to supply chain disruptions.

For the Parag project and its owners this moment presents both a challenge and a lucrative opportunity in a changing global metals market.

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