MINERALS AT ROSEMONT RANCH

Rosemont Ranch is anticipated to have the rare combination of copper, molybdenum and silver in what is one of the largest unmined surface deposits in the county. Just what are these minerals and why are they so useful?

Copper
This versatile mineral has been used by humans longer than any other metal and has been mined for centuries. Finding new sources is increasingly important to the nation, because 40 percent of the US copper supply comes from outside the country. Copper is malleable and can be pounded into other shapes, stretched into wire and cut into slices.

A non-magnetic metal, copper’s key characteristics include: the ability to conduct electricity and heat, its capability for being drawn into fine wire or being easily shaped or bent, its resistance to corrosion and its biostatic nature – not allowing bacteria to grow on its surface.

Copper plays a significant role in our lives and is a component of most of the everyday things we use. From pennies to electric light bulbs to the Statue of Liberty to space flight -- the places you find this metal in use are as diverse they are remarkable. Today’s average home includes about 400 pounds of copper and the average car has 50 pounds. As vehicles become more and more environmentally friendly – and use more electricity – they will require more copper in cleaner burning engines.

The list of uses for this amazing mineral, which occurs in all living things, is almost endless and includes: brakes, radiators, electrical wiring, diesel engines, jet aircraft, farm vehicles, submarines, subway cars, buses, electrical wiring, plumbing, roofing, computers, telephones, audio and visual equipment, money, appliances, flatware, and furniture.

In addition to Arizona, copper is mined primarily in Argentina, Australia, Chile, New Mexico, Peru, and Russia.

Molybdenum
Molybdenum is used principally as an alloying agent in steel and cast iron to improve hardness, strength, toughness, and wear and corrosion resistance. The mineral is frequently used with chromium, columbium (niobium), manganese, nickel, tungsten, or other alloy metals. Moly has a wide variety of uses, especially those requiring materials that can withstand high stress, temperature ranges and corrosive environments.

Molybdenum and molybdenum alloys are used to make such things as light- weight bicycle components and frames, filaments for light bulbs, automotive parts, food handling and construction equipment, gas transmission lines, laboratory equipment, machining components, military defense equipment, and paint.

New advances in steels containing more molybdenum have opened new markets, such as fuel storage tanks, flour silos, and desalinization plants. New mixtures of Moly in carbon steel have allowed pipeline manufacturers to use less steel and have allowed U.S. car makers to reduce weight in vehicles while increasing crash safety.

This versatile mineral, which is very difficult to substitute, is used in many modern chemical applications, including catalysts (to make Ultra-Low Sulfur Diesel fuel), lubricants, and pigments.

For nearly 30 years, the supply of molybdenum was extremely high while the demand was relatively stable, which kept the price very low (under $5 per pound). But since 2002, that picture has changed dramatically. The worldwide demand for steel products has skyrocketed, resulting in decreased Moly supplies. The price of molybdenum today is in the $25.00 per pound range, an increase of 500% since 2003.

Molybdenum, like copper and silver, is traded on commodity exchanges like the London Metal Exchange.

Silver
Like copper and molybdenum, silver is in demand for its strength, malleability, electrical and thermal conductivity, and ability to endure extreme temperature ranges. In addition, its sensitivity to and high reflectance of light give it exceptional properties. Uses of silver include batteries, bearings, electronics, electroplating, photography, medical applications, jewelry and silverware, mirrors and coatings, solar energy and water purification. Silver is a key material with many uses in our modern world besides its well-known use in ornamental jewelry. In fact, the vast majority of silver used in 2006 was for industrial purposes (over 430 million ounces). Jewelry still accounted for the second highest use of silver (166 million ounces), while use in the photographic sector was a close third (146 million ounces).

The market price of silver has an interesting history, especially here in the United States, since silver was an integral part of U.S. monetary policy dating from the 1870s. In the last century, the price of silver was kept artificially stable by the U.S. Government from the 1930s until the 1960s (as part of the Silver Purchase Act of 1934). The U.S. Treasury stockpiled silver and kept the price close to 91¢ a pound, even as demand rose after World War ll. The Treasury stopped backing U.S. currency with silver in the early 1960s, replacing the silver certificates with Federal Reserve notes. The Treasury was also eliminating silver from U.S. coins. With the government selling its silver supplies, and demand for silver increasing, the price of silver rose.

In the 1970s, short supplies and sharp demand for silver increased prices to nearly $25 an ounce and by early 1980, silver prices peaked at $48. In the '90s, copper prices stabilized, averaging $4 to $5 per ounce and has continued to increase since.

Silver, like copper, molybdenum, and other metals, is traded on commodity exchanges in New York, Chicago, London, Zurich and Hong Kong.