Moly Mines Limited: Iron Ore at Spinifex Ridge
Wed Jul 23, 10:48 AMTORONTO, ONTARIO--(Marketwire - July 23, 2008) - Moly Mines Limited, (TSX: MOL.TO)(ASX: MOL.AX) is pleased to announce further significant Iron results from the first RC drilling program investigating the iron ore mineralization at the Spinifex Ridge Molybdenum Project.
The 1500 metre program was designed to test two areas of outcropping hematite mineralisation that returned rock chips assaying between 55% and 70% Fe. These outcrops are the first to be tested within the 7 kilometre long iron formation range ("Spinifex Ridge") that traverses the project mining leases. The new results are from the second of the areas (Fe Area 2 on attached figure), with the highlights including:--------------------------------------- 55 metres @ 64.3% Fe from 0m --------------------------------------- 19 metres @ 61.6% Fe from 3m --------------------------------------- 29 metres @ 58.3% Fe from 0m including 4 metres @ 63.1% Fe from 0m and 11 metres @ 61.2% Fe from 17m --------------------------------------- 18 metres @ 58.3% Fe from 7m including 8 metres @ 61.4% Fe from 11m ---------------------------------------The program covered an area of 400 x 250m using vertical holes on a drill spacing of 50 x 50m, or 50 x 100m. In addition to these potentially direct ship ore grades (DSO) outlined above there were also several intervals that assayed between 50 and 60% Fe, including;
---------------------------- 14 metres @ 55.6% Fe from 2m ---------------------------- 16 metres @ 56.0% Fe from 0m ---------------------------- 18 metres @ 54.3% Fe from 0m ---------------------------- 7 metres @ 55.0% Fe from 1m ----------------------------These slightly lower grade intersections form a coherent horizontal blanket up to 20m thick which is typical of laterite enrichment. These results complement those from the first area of outcropping hematite (Fe Area 1) that were released in June. Those results included;
June Drilling Results --------------------------------------- 72 metres @ 60.7% Fe from 0m including 42 metres @ 66.2% Fe and 9 metres @ 60.2% Fe --------------------------------------- 106 metres @ 52.8% Fe from 0m including 3 metres @ 65.4% Fe and 47 metres @ 65.8% Fe ---------------------------------------Management is currently reviewing various options regarding the immediate and future potential of these outstanding iron results. The intent is to fast track the delineation of a JORC compliant resource for Fe, in addition to the previously announced JORC / NI 43-101 compliant 652 million tonne measured and indicated molybdenum / copper resource at Spinifex Ridge. CEO, Dr Derek Fisher, commented that "due to the current intensive focus on the Spinifex Ridge Molybdenum Project and its financing, an option currently under consideration for this non-core asset, is to invite Expressions of Interest from third parties to capitalize on the Iron potential of the tenements." The outcropping hematite iron mineralisation occurs 500 to 1500 metres to the west of the Spinifex Ridge molybdenum / copper resource and within the granted mining leases (see attached location map). The exploitation of iron ore will be enhanced by the synergies of the nearby molybdenum mine and infrastructure at Spinifex Ridge. The Spinifex Ridge Project is located 170km east of Australia's largest tonnage port in Port Hedland. Access to the port for Iron Ore exports would be supported by the existing high quality road and transport systems in the area. The attached table shows the full drill results. To view, please visit the following link: http://media3.marketwire.com/docs/mol723_table.pdf To view a map of the Location of Iron Ore Mineralization, please visit the following link: http://media3.marketwire.com/docs/mol723_map.pdf These press materials do not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that will contain detailed information about the company and management, as well as financial statements. THESE PRESS MATERIALS ARE This news release includes "forward-looking statements" as that term within the meaning of securities laws of applicable jurisdictions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond Moly Mines' control. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this news release, including, without limitation, those regarding Moly Mines' future expectations. Readers can identify forward-looking statements by terminology such as "aim," "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "potential," "predict," "project," "risk," "should," "will" or "would" and other similar expressions. Risks, uncertainties and other factors may cause Moly Mines' actual results, performance, production or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements). These factors include the failure to complete and commission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costs currently planned; variations in global demand and price for molybdenum and copper; fluctuations in exchange rates between the U.S. dollar and the Australian dollar; failure to recover the resource and reserve estimates of the Project; the failure of Moly Mines' suppliers and service providers to fulfill their obligations under construction, supply and tolling agreements; unforeseen geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labor shortages, political and other factors; the inability to obtain additional financing, if required, on commercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information. "The information in this report that relates to Exploration Results is based on information compiled by Dr Derek Fisher who is a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Fisher is Chief Executive Officer of Moly Mines Limited, and has sufficient experience which is relevant to the style of mineralisation 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' and as a Qualified Person for purposes of National Instrument 43-101 of the Canadian Securities Administrators. 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." ContactsDerek Fisher
Moly Mines Limited
Managing Director
+61 8 94293300
Website: www.molymines.com
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