Catalyst for change on molybdenum

In a market dominated by uranium, gold and iron ore initial public offerings, junior explorer Catalyst Metals Ltd is something of an oddity.

The company, which made its debut on the Australian Stock Exchange this week, successfully raised $3.2 million to explore the Minnie Creek project area, located 242 kilometres north east of Carnarvon, for the transitional metal molybdenum.

Catalyst Metals non-executive director Jim Malone said the interesting aspect of molybdenum exploration was its position in the market.

“There are no molybdenum mines in Western Australia,” he said. “It is also a new sort of discovery when there are very few new exploration projects in the state.”

In its prospectus, the company says molybdenum’s main use was in the steel industry, with its high melting point providing increased strength and corrosion resistance properties enhancing the application and capabilities of various metal alloys.

“People think it is exotic; its not. It is a staple component of all steel manufacturers – anything that is built near the ocean or anywhere corrosive has got molybdenum in it,” Catalyst Metals executive director Mark Thompson said.

In 1995, when Mr Thompson discovered the deposit at Minnie Springs, the price of molybdenum was only $US2.40 a pound. Today it is priced at around $US25 a pound.

“It was priced at around $US40 about 12 months ago,” Mr Thompson said.

The project area is about 872 square kilometres and is tenured under four exploration licences.

The Minnie Springs prospect has had limited exploration, with only nine holes having been drilled to date.

Catalyst is in the final stages of securing access agreements and permits for drilling and intends to commence its first phase drilling program in late September.