New mill beings producing copper and molybdenum concentrates.
Shares of Mercator Minerals (TSX: T.ML, Stock Forum) jumped 25% to 55 cents Tuesday after the company reported that its new 25,000 ton per day mill has started producing copper and molybdenum concentrates at its Mineral Park Mine in Arizona.
"In less than two years from completion of pre feasibility, Mercator has financed, engineered, procured equipment, and constructed one of the largest and certainly the most modern mill in North America," said Mike Surratt, the company’s president and CEO.
Construction of the Phase 1 mill and major components of the Phase 2 expansion started in April 2007. Phase 1 of the mill is now complete and is producing copper and molybdenum concentrates and is designed to process at least 25,000 tons per day of ore. The company notes that about 70% of the Phase 2 mill expansion has been completed, “including the second SAG mill foundations and mill reconditioning, reclaim tunnel, ball mill base foundations, cleaner copper circuit, moly circuit, tailings embankment, tailings thickener tank, and water wells.”
On the Mercator Minerals Bullboard Tuesday, 50centdollars commented:
I don't expect this NR to sustainably juice the share price. There are still doubts in the market over financing of the remainder of Phase II and ML's ability to repay the notes. Also, I think copper has further to fall, though I am hopeful molybdenum has bottomed out. I am sorely tempted to buy at these levels, but I see the macroeconomic picture getting worse before it gets better, bringing metal prices down even further. We're still in the early innings of this crisis... many more shoes to drop (if I may mix metaphors)[sic].
