Almonty Industries (NASDAQ: ALM and AII.TO), a global producer of tungsten concentrate, was up 0.5% in US premarket trade Tuesday after updating on its large-scale drilling program at the Sangdong Molybdenum Project adjacent to Almonty's Sangdong Mine in Yeongwol, Gangwon Province, South Korea, to confirm molybdenum resources ahead of future project development.
To date, approximately 37% of the 26 planned drill holes, which will cover approximately 12,000 meters in total, have been drilled, Tuesday's statement said. The assays received thus far have grades similar to those of historical drill holes. Once the full extent of the molybdenum ore body at Sangdong is confirmed, Almonty plans to begin mining without delay, it added.
Lewis Black, Chairman, President and Chief Executive Officer of Almonty, said: "The early results from this campaign are highly encouraging. With approximately 37% of the program complete, the grades we are encountering are consistent with the historical data, reinforcing our confidence in the scale and quality of the molybdenum resource at Sangdong. We are advancing this work with urgency, as South Korea confronts a critical shortage of molybdenum, and we believe Sangdong Molybdenum Project can become a stable, allied source of supply for a metal that is vital to defense, energy and advanced manufacturing."
Black added: "Molybdenum is a natural extension of the infrastructure and expertise we have already established at Sangdong for tungsten. Advancing both metals together allows us to build long-term value for shareholders while supporting national resource security, strengthening the regional economy and reducing the nation's dependence on imports. Once the full extent of the ore body is confirmed, we intend to move into production without delay."
Shares in Almonty rose $0.30 or 1.2% to $25.05 in Canada yesterday.