EV Resources (ASX:EVR) Advances Parag Project Amid China’s Molybdenum Export Controls
Strategic Positioning
EV Resources Limited (ASX:EVR) is poised to become a significant supplier of molybdenum to the USA following China’s new export controls on molybdenum products. The company’s Parag copper-molybdenum porphyry project in Peru, where EVR holds a 70% stake, has completed 83 drill holes with consistently high-grade molybdenum by-product alongside copper.
Drilling Highlights
The 2024 drill campaign at Parag demonstrated excellent molybdenum grades, with results from seven diamond holes totaling 1,980 metres. Notable intersections include Hole APG-001, which returned 476 metres grading 0.31% Cu and 0.14% Mo from 3.2 metres, and Hole APG-005 with 148 metres at 0.54% Cu and 0.35% Mo from 0.2 metres. These findings support the economic viability of the copper project.
Executive Comments
Managing Director Hugh Callaghan stated, “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. Parag has remarkable by product molybdenum grades higher than most primary molybdenum mines and projects which offers a compelling economic support to the economics of this copper project.”
Future Outlook
EVR is exploring optimal funding for the next phase of drilling at Parag and continues discussions with molybdenum roasters in the USA and the Americas. The newly opened Chancay bulk port, a two-hour drive from Parag, will facilitate the export of copper and molybdenum concentrates.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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