News Source Dow Jones: http://www.marketwatch.com/story/near-term-production-scenario-at-tosca-mining-red-hills-molybdenum-copper-project-texas-mining-journal-feature-2011-05-20
Near Term Production Scenario at Tosca Mining Red Hills Molybdenum-Copper Project Texas
Mining MarketWatch Journal has published a review of Tosca Mining Corporation (TSX VENTURE: TSQ) (US Listing: TSMNF) (frankfurt:TQ4) offering insight and opportunity afforded investors as TSQ.V possesses near term production potential at its advanced stage Red Hills Molybdenum-Copper Project in Texas. The company's goal of mining the near surface copper blanket will provide a means to economically advance and exploit the large Molybdenum zone that lies beneath. The directorship/technical leadership of Tosca Mining have a history of taking mining projects to production and are moving rapidly in that direction. In only four months TSQ.V has managed to go from Letter of Intent, to formal agreement, to starting a drill program, and raising ~$5.25M. The current drill program at Red Hills could well propel the share price of TSQ.V as the reality of the magnitude of what Tosca possesses at Red Hills becomes better understood by the marketplace.
The full Journal review may be found at http://miningmarketwatch.net/tsq.htm
Tosca Mining Corporation has a team of highly skilled individuals with a history of taking projects to production, so it is only natural this production team acquired the Red Hills Molybdenum-Copper Project in Texas. Red Hills is more a big moly story than big copper, but the copper will allow TSQ.V to make money and get into business without having to dilute the share structure. Red Hills contains a near surface copper blanket with a historical (non NI 43-101) 120 million pounds Cu resource grading 0.35% Cu. Mining this copper blanket will provide a means to economically advance and exploit the large Mo zone that lies beneath. The Molybdenum zone discernibly measures 1000 m by 200 m and is open in 3 directions. Drill hole #7 typifies the nature of the Mo deposit; DH7 is a ~2000ft hole that runs almost concise grade from top to bottom of 0.076% molybdenum. Most of the 88 drill holes to date from past operators concentrated on proving up the near surface copper bed. Drilling through the copper blanket and entering the moly zone that lays beneath reveals a horseshoe/doughnut shaped system that is believed to be extremely large; possibly containing up to 500 million tonnes as there is evidence that this system extends in a southerly direction. At today's commodity prices this would translate to several billion dollars worth of molybdenum. The current drilling will give the data needed to confirm the economics of the copper blanket as well as start to define the size of the Moly zone. A historic pre-feasibility on the copper blanket shows positive economics and management of TSQ.V has already received offers from potential suitors to mine the copper bed, however it makes most sense to resist the temptation to bite until after confirmation drilling as it is possible the copper resource could be expanded giving different economics. Back of the envelope calculations show that 17 to 25 mt of copper so close to surface could throw off ~$60 million/year for 8 years from a nominal ~$100M capex for mill and mine site development, the mill could then be used to process the Mo zone -- that is the model that Mercator Minerals Ltd. (which was recently purchased/merged with Creston Moly Corp.) used to put its moly into business. Shareholders and potential investors in TSQ.V would do well to look at the phenomenal success Mercator encountered in its growth to maturity as it appears a similar situation is about to repeated for TSQ.V here at Red Hills. One only needs to look at the curriculum vitae of the directorship/technical leadership of Tosca to know where this is going -- A production team lead by Tosca Mining's CEO Dr. Sadek El-Alfy a professional Mining Engineer with 35 years experience, and formerly COO at Creston Moly Corp., where he was instrumental in preparing the Pre-Feasibility and Environmental Impact Studies for a large scale Moly/copper deposit in Northern Mexico.
With only ~36M shares outstanding (~56M fully diluted) and trading under CDN
.50, TSQ.V is well capitalized (~$5M in the bank as of May 12, 2011) and poised for significant upside revaluation. There is no reason in our mind why TSQ.V right now shouldn't be seeing double its current market cap.
James O'Rourke, Editor
Mining MarketWatch Journal