Molycor Receives Hazen Research's Phase 1 Process Development Study for Exploitation of Tami Mosi Dolomite Resource
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/15/10 -- Larry W. Reaugh, Chairman and Chief Executive Officer of Molycor Gold Corp. (TSX VENTURE: MOR)(PINK SHEETS: MLYFF)(FRANKFURT: M1V) ('Molycor' or the 'Company') is pleased to report on the Company's receipt of Hazen Research Inc.'s Phase 1 Process Development Study for Exploitation of the Tami Mosi Resource. Tami Mosi is located in Schell Creek Range of White Pine County near Ely, Nevada. It covers 2,700 acres, is 100% owned by Molycor and is the subject of a NI-43-101 compliant property evaluation by N. Tribe & Associates (completed July, 2009).
The resource is a premium quality dolomite containing an estimated 236 million tonnes of dolomite with greater than 10% Mg content and very low impurities. Hazen's work included review of the technical literature on industrial processes for recovery of magnesium from dolomite and work on drill core samples to establish character of this resource.
Based on Hazen's initial assessment the high quality dolomite is an ideal basis for production of magnesium based refractories, magnesium metal, cement and/or agricultural products. Analyses on a sample from drilling done in 2008 show the dolomite to be almost identical to the National Institute of Standards & Technology Standard Reference Material 88b (for dolomite limestone) with lower levels of impurities as shown in the table below (shown as %).
----------------------------------------------------------------
Compound SRM 88b TM-08-02(1) TM-07-13(2)
----------------------------------------------------------------
MgO 21.03 21.10 20.95
CaO 29.95 30.40 29.91
----------------------------------------------------------------
CO2 46.37 46.40 46.78
SiO2 1.13 0.968 1.250
Fe2O3 0.277 0.066 0.100
----------------------------------------------------------------
Al2O3 0.336 0.0988 0.220
MnO 0.016 0.018 0.010
----------------------------------------------------------------
P2O5 0.0044 less than 0.001 less than 0.010
K2O 0.103 0.03 0.010
Pb No Assay less than 0.001 No Assay
----------------------------------------------------------------
Total 99.2 99.1 99.27
----------------------------------------------------------------
(1) Hole #TM-08-24 from 350 - 265 ft. Analysis performed by Hazen
Research Inc.
(2) Hole #TM-07-13 from 270 - 300 ft. (previously reported). Analysis
performed by Teck Cominco Global Discovery Ltd.
The report outlines potential processing routes for production of both of the high value products (magnesium metal and MgO specialty ceramics) and recommends further work to develop a full economic feasibility based on new drill core samples from the core of the resource. Magnesium metal can be won by hydrometallurgical or thermal reduction methods: leaching with hydrochloric acid makes possible the recovery of limestone for concurrent production of cement as well as magnesium oxide which is intermediate product for refractories or specialty ceramics as well as magnesium metal ingots.
The Company accepts Hazen's recommendation to develop a full feasibility for exploitation of this resource. However, prior to this, the Company's next step will be to proceed to a NI 43-101 Preliminary Economic Assessment.
About Magnesium:
Although magnesium is found in over 60 minerals, only dolomite, magnesite, brucite, carnallite and olivine are of commercial importance. Magnesium and other magnesium compounds are also produced from seawater, well and lake brines and bitterns. Magnesium metal's principal use is as an alloying addition to aluminum, and these aluminum-magnesium alloys are used mainly for beverage cans; another major use of Magnesium is as an alloy in the structural components of automobiles and machinery. Magnesium also is used to remove sulphur from iron and steel.
In 2009, magnesium was produced by only one company in the USA at a plant in Utah by an electrolytic process that recovered magnesium from brines from the Great Salt Lake. China produces approximately 80% of the world's magnesium and enjoys market dominance. The American government has placed countervailing duties against Chinese imports.
About Molycor Gold Corp.:
Molycor is a diversified precious, speciality and base metal exploration and development company focusing on magnesium, molybdenum and gold exploration and development in North America.
This release was reviewed by John W. Fisher, P.Eng. a qualified person recognized under National Instrument 43-101.
On Behalf of Management
Larry W. Reaugh, Chief Executive Officer
For all Molycor Gold Corp. investor relations needs, investors are asked to visit the Molycor Gold Corp. website at www.molycor.com.
This news release may contain certain 'Forward-Looking Statements' within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX-Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.
The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Molycor Gold Corp.
Larry W. Reaugh
Chief Executive Officer
604-531-9639
604-531-9634 (FAX)
info@molycor.com
www.molycor.com