Roxmark Mines Limited -
Roxmark 200 TPD Mill -
David Malouf at the feeder chute
Floatation cells
Moly surface outcrop
Moly surface vein
There is another miner, a real miner, much closer to
the actual production of moly.
In November I traveled to the bitter north country
of the Geraldton-Beardmore gold mining camp in Ontario.
I was leaving 70 degrees in Miami for -1000 degrees
in the Thunder Bay area. And boy did it seem cold.
I was visiting the Nortoba-Tyson moly/gold property
of Roxmark Mines Ltd.
Back in 1999-2000 when the entire industry seemed on
the verge of shutting down, the TSE, now TSX Exchange,
demanded Roxmark accept a move to the another exchange.
Legally Roxmark then fulfilled all the requirements of
the TSE but for political reasons the exchange insisted
on either more money in the till or a downgrade in their listing.
Being a real mining company unlike so many of the promotional-oriented companies springing up today,
Roxmark bit the bullet and accepted the downgrade.
They listed on the CNQ (Symbol-RMKL), a junior exchange
in Canada most people don't even know exists.
http://www.cnq.ca/Page.asp?PageID=2013&AA_RecordID=91
The shares are way underpriced primarily due to
the simple lack of liquidity.
Roxmark spent the last five years acquiring and
consolidating their holdings in the camp.
They picked up the high grade Leitch Gold Mine and
an excellent moly property.
They kept a sizable portfolio of medium size gold projects
and were content to keep the doors open and
the heat turned on.
With higher prices for gold they began to increase
the pace of their activities in 2005.
They already own a 200 TPD mill in Beardmore
which has been inactive since 2001.
They recommissioned it last year and upgraded it
with a new state of the art Knelson concentrator
and a Gemeni table for fine gold separation.
In addition, and planning for the future, they
installed a moly floatation circuit with disc filters
and a concentrate dryer.
Then President, now Vice Chairman David Malouf,
showed me around his various projects in November
for two days. I was impressed.
They have some real mines and a good plan and
I think they will succeed.
I've said it before and I'm sure our readers will hear
me say it many times in the future,
I like the real miners a lot more than the Rhinestone
Cowboys of the penny dreadful Vancouver stocks.
In my mind, the very best miners in the world are the garimpeiro miners of Brazil and Chile and their
brethren in Burkina Faso and Tanzania.
All of them make a profit and profit is a four letter
word in Vancouver. If the artisan miners can't mine
at a profit, they don't mine.
The most promotional Vancouver companies will drill
as long as some fool will belly up to the bar and fork
over more hard-earned cash.
Mexican miners drill a hole or two until they find ore,
then they drift until they run out of of pay dirt.
There are companies in Vancouver that would drill until
they hit China, then do a Private Placement or three.
I like the real miners.
They will be the salvation of the industry.
Roxmark has six past producing gold mines which
collectively produced 2 million ounces of gold.
They have a fully functional 200 TPD mill,
a flotation circuit and have been producing gold
in small quantities.
In addition to the various gold properties, they have
a high grade molybdenum deposit called the Nortoba-Amorada-Tyson prospect
located in the Beardmore Mining Camp in
the Thunder Bay Mining District.
David Malouf's plan is to put the high grade surface
moly ore into production this spring/summer.
The moly has a historical reserve grade of 1.72% MoS2
which would be equal to about 1.032% moly oxide worth
some $520 gross metal value per ton.
Roxmark has outlined about 3000 tons which they have
applied to mine via a bulk sample permit.
The objective is to prove the capability of the mill
and to provide the cash flow to further develop an
underground mine where he has already outlined
6,000 tons of the 1.5% to 1.7% MoS2.
The permit for the surface bulk sample should be in
hand soon and by the time they have mined the surface ore,
they should have the underground permit.
I like moly, it's an interesting metal.
Some 80% of moly mined, goes into stainless steel.
The rest is used in industrial chemicals and in aerospace applications.
China is the swing producer and their production
determines the world price.
Most moly is produced as a byproduct of copper production
so the price doesn't have a major effect on supply.
China has shut down hundreds of small moly mines in
the last two years and since all their production goes
straight to steel mills, the price of moly rocketed
from $2 a pound to as high as $38 before stabilizing
in the $24 range.
It's important for anyone considering the purchase
of any primary moly stock to understand there is no
shortage of moly properties.
In fact, we know of enough moly in the ground to
supply 200 years worth of moly.
But there is a short term (at least short term) supply shortage.
The first companies to actually get into production
are the ones who are going to reap the benefit.
I suspect Roxmark will be the firstest with the mostest.
I like management, I liked the company enough to buy
some shares as soon as I saw the story.
I think they have a viable plan for making a nice profit.
With over $2 million in the till, Roxmark is well
cashed up.
The cash flow from the surface bulk sample should pay
the way for the underground mining and that should put
them back on their feet without further dilution.
I was quite strong in expressing my concerns about
the company with David Malouf and he is taking the steps necessary to make the company better.
First of all, they have to get off the CNQ exchange.
It's worse than being on the pink sheets here.
David assures me they are working on the upgrade to
the TSX and I think that will move the stock higher.
Second, I am not comfortable with stocks in the teens.
Shares trading in the $.15 to $.18 range just doesn't
give me confidence.
Anytime they do a placement, they end up giving
the company away, literally for pennies.
With about 112 million shares outstanding, they might
as well bite the bullet when no one gives a damn about
the price and roll the shares back.
The other six gold properties are nothing to sneeze at.
I've written about the moly property because it's money
in the bank but with $640 gold, all of the other mines
have good potential for more production.
I suspect Roxmark will try to keep them in house so
they get the benefit, that's why they have been sitting
on them for so long but they could do a JV or two
at any time.
Roxmark has experienced management who are real miners,
they have survived a dreadful period in mining and are
on the way back up.
Roxmark has not paid for this piece.
They are not advertisers but I wouldn't be opposed to
having them on our site.
I do own shares and am a long-term investor.
It's a good story, worth investing in.
You are responsible for your own investment decisions
in the same way I am responsible for mine.
Ted and I really hate the cold! 200 TPD Mill Ted examining Moly drill core
David Malouf at the feeder chute Floatation cells Moly surface outcrop
Moly surface vein The traveling bear & my much-traveled hammer Rewards: Honey for the bear & a moly sample for me
Roxmark Mines Ltd
RMKL-C $.165 Canadian (April 19, 2006)
112 million shares outstanding
Roxmark Mines website
http://www.roxmark.com/
Bob Moriarty
President: 321gold
Archives
321gold Inc
http://www.investorshub.com/boards/board.asp?board_id=1499
http://www.321gold.com/editorials/moriarty/moriarty042006.html
321gold Inc
Roxmark 200 TPD Mill -
David Malouf at the feeder chute
Floatation cells
Moly surface outcrop
Moly surface vein
There is another miner, a real miner, much closer to
the actual production of moly.
In November I traveled to the bitter north country
of the Geraldton-Beardmore gold mining camp in Ontario.
I was leaving 70 degrees in Miami for -1000 degrees
in the Thunder Bay area. And boy did it seem cold.
I was visiting the Nortoba-Tyson moly/gold property
of Roxmark Mines Ltd.
Back in 1999-2000 when the entire industry seemed on
the verge of shutting down, the TSE, now TSX Exchange,
demanded Roxmark accept a move to the another exchange.
Legally Roxmark then fulfilled all the requirements of
the TSE but for political reasons the exchange insisted
on either more money in the till or a downgrade in their listing.
Being a real mining company unlike so many of the promotional-oriented companies springing up today,
Roxmark bit the bullet and accepted the downgrade.
They listed on the CNQ (Symbol-RMKL), a junior exchange
in Canada most people don't even know exists.
http://www.cnq.ca/Page.asp?PageID=2013&AA_RecordID=91
The shares are way underpriced primarily due to
the simple lack of liquidity.
Roxmark spent the last five years acquiring and
consolidating their holdings in the camp.
They picked up the high grade Leitch Gold Mine and
an excellent moly property.
They kept a sizable portfolio of medium size gold projects
and were content to keep the doors open and
the heat turned on.
With higher prices for gold they began to increase
the pace of their activities in 2005.
They already own a 200 TPD mill in Beardmore
which has been inactive since 2001.
They recommissioned it last year and upgraded it
with a new state of the art Knelson concentrator
and a Gemeni table for fine gold separation.
In addition, and planning for the future, they
installed a moly floatation circuit with disc filters
and a concentrate dryer.
Then President, now Vice Chairman David Malouf,
showed me around his various projects in November
for two days. I was impressed.
They have some real mines and a good plan and
I think they will succeed.
I've said it before and I'm sure our readers will hear
me say it many times in the future,
I like the real miners a lot more than the Rhinestone
Cowboys of the penny dreadful Vancouver stocks.
In my mind, the very best miners in the world are the garimpeiro miners of Brazil and Chile and their
brethren in Burkina Faso and Tanzania.
All of them make a profit and profit is a four letter
word in Vancouver. If the artisan miners can't mine
at a profit, they don't mine.
The most promotional Vancouver companies will drill
as long as some fool will belly up to the bar and fork
over more hard-earned cash.
Mexican miners drill a hole or two until they find ore,
then they drift until they run out of of pay dirt.
There are companies in Vancouver that would drill until
they hit China, then do a Private Placement or three.
I like the real miners.
They will be the salvation of the industry.
Roxmark has six past producing gold mines which
collectively produced 2 million ounces of gold.
They have a fully functional 200 TPD mill,
a flotation circuit and have been producing gold
in small quantities.
In addition to the various gold properties, they have
a high grade molybdenum deposit called the Nortoba-Amorada-Tyson prospect
located in the Beardmore Mining Camp in
the Thunder Bay Mining District.
David Malouf's plan is to put the high grade surface
moly ore into production this spring/summer.
The moly has a historical reserve grade of 1.72% MoS2
which would be equal to about 1.032% moly oxide worth
some $520 gross metal value per ton.
Roxmark has outlined about 3000 tons which they have
applied to mine via a bulk sample permit.
The objective is to prove the capability of the mill
and to provide the cash flow to further develop an
underground mine where he has already outlined
6,000 tons of the 1.5% to 1.7% MoS2.
The permit for the surface bulk sample should be in
hand soon and by the time they have mined the surface ore,
they should have the underground permit.
I like moly, it's an interesting metal.
Some 80% of moly mined, goes into stainless steel.
The rest is used in industrial chemicals and in aerospace applications.
China is the swing producer and their production
determines the world price.
Most moly is produced as a byproduct of copper production
so the price doesn't have a major effect on supply.
China has shut down hundreds of small moly mines in
the last two years and since all their production goes
straight to steel mills, the price of moly rocketed
from $2 a pound to as high as $38 before stabilizing
in the $24 range.
It's important for anyone considering the purchase
of any primary moly stock to understand there is no
shortage of moly properties.
In fact, we know of enough moly in the ground to
supply 200 years worth of moly.
But there is a short term (at least short term) supply shortage.
The first companies to actually get into production
are the ones who are going to reap the benefit.
I suspect Roxmark will be the firstest with the mostest.
I like management, I liked the company enough to buy
some shares as soon as I saw the story.
I think they have a viable plan for making a nice profit.
With over $2 million in the till, Roxmark is well
cashed up.
The cash flow from the surface bulk sample should pay
the way for the underground mining and that should put
them back on their feet without further dilution.
I was quite strong in expressing my concerns about
the company with David Malouf and he is taking the steps necessary to make the company better.
First of all, they have to get off the CNQ exchange.
It's worse than being on the pink sheets here.
David assures me they are working on the upgrade to
the TSX and I think that will move the stock higher.
Second, I am not comfortable with stocks in the teens.
Shares trading in the $.15 to $.18 range just doesn't
give me confidence.
Anytime they do a placement, they end up giving
the company away, literally for pennies.
With about 112 million shares outstanding, they might
as well bite the bullet when no one gives a damn about
the price and roll the shares back.
The other six gold properties are nothing to sneeze at.
I've written about the moly property because it's money
in the bank but with $640 gold, all of the other mines
have good potential for more production.
I suspect Roxmark will try to keep them in house so
they get the benefit, that's why they have been sitting
on them for so long but they could do a JV or two
at any time.
Roxmark has experienced management who are real miners,
they have survived a dreadful period in mining and are
on the way back up.
Roxmark has not paid for this piece.
They are not advertisers but I wouldn't be opposed to
having them on our site.
I do own shares and am a long-term investor.
It's a good story, worth investing in.
You are responsible for your own investment decisions
in the same way I am responsible for mine.
Ted and I really hate the cold! 200 TPD Mill Ted examining Moly drill core
David Malouf at the feeder chute Floatation cells Moly surface outcrop
Moly surface vein The traveling bear & my much-traveled hammer Rewards: Honey for the bear & a moly sample for me
Roxmark Mines Ltd
RMKL-C $.165 Canadian (April 19, 2006)
112 million shares outstanding
Roxmark Mines website
http://www.roxmark.com/
Bob Moriarty
President: 321gold
Archives
321gold Inc
http://www.investorshub.com/boards/board.asp?board_id=1499
http://www.321gold.com/editorials/moriarty/moriarty042006.html
321gold Inc
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