Moly Mines finds 24-year mine life with Spinifex study
2009-04-30 10:48 ET - News Release
Mr. Derek Fisher reports
MOLY MINES REPORTS QUARTER ACTIVITIES
Moly Mines Ltd. has released highlights from its quarterly activities report for the period ending March 31, 2009, available on SEDAR.
Spinifex Ridge molybdenum
Moly Mines has completed an advanced engineering study on a smaller, start-up Spinifex Ridge molybdenum project. This has demonstrated a significantly reduced capital hurdle whilst maintaining attractive financial fundamentals. The highlights of the study include:
* 10 million tonnes per year (expansion potential to 11.3 tonnes per year);
* 24-year mine life;
* 0.07-per-cent-molbydenum head grade for first 10 years;
* $528-million (Australian) capital cost;
* $7.80 (U.S.)-per-pound-molybdenum operating cost;
* $461-million (Australian) net present value ($17.50-per-pound long-term Mo price)
The development of a smaller-case Spinifex Ridge start-up project arose from the significant deterioration in the global capital markets and from the accompanying rapid decline in the molybdenum metal price during the last five months as the world's steel production slumped. The study has demonstrated a technically viable development opportunity that benefits from the detailed engineering and design work completed for the larger 20-tonne-per-year definitive feasibility study with an operating cost structure well below the medium-to-long-term molybdenum price. The 10-year average molybdenum price to March 31, 2009 (including the dramatic slump of October, 2008, to March, 2009) is $15 (U.S.) per pound.
This advanced engineering study is based on geology, resources, metallurgy, process design and engineering data reported in Stockwatch Sept. 25, 2007, in the 20-million-tonne-per-year definitive feasibility study (DFS) and detailed engineering work completed thereafter.
Spinifex Ridge iron ore
The resource definition drilling program was completed on the three iron ore occurrences with an initial resource calculation currently under way. Permitting has commenced for mining these resources as has detailed mine planning and engineering.
New project acquisition
A large number of potential acquisition projects have been assessed by the company with negotiations now under way on a number of those that have been shortlisted.
The information in this report that relates to exploration results is based on information compiled by Dr. Derek Fisher, who is a member of the Australasian Institute of Mining and Metallurgy. Dr. Fisher is managing director of Moly Mines, and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2004 edition of the Australasian code for reporting of exploration results, mineral resources and ore reserves. Dr. Fisher is also a qualified person within the meaning of such term under National Instrument 43-101. Dr. Fisher consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
We seek Safe Harbor.