Moly Mines Limited

Moly Mines Limited

November 30, 2010 09:00 ET

Moly Mines Announces Spinifex Ridge Iron Ore Mine in Production

TORONTO, ONTARIO--(Marketwire - Nov. 30, 2010) - Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to announce that it has commenced iron ore production at Spinifex Ridge, 50km northeast of Marble Bar in the Pilbara of Western Australia.

Commissioning of the crushing and screening processing plant has been successfully completed and commercial production is now underway (refer photo attached: The plant is operating on one shift per day and ramping-up to the designed through-put rate of 3,000 tonnes per day, equivalent to 1 million tonnes per annum.

Trucking of iron ore product into Port Hedland has also commenced with approximately 5,000 tonnes of material already transported into the Utah Point port facility (refer photo attached:

Moly Mines CEO/MD Dr Derek Fisher commented "first commercial mine production is a momentous occasion for any mining company, and this is certainly the case for us. Considering the parlous state of the Company in 2008 during the GFC, the rapid commercialization of our small, but potentially very profitable, iron ore deposit is a great complement to the skill and dedication of our technical team and management. It augurs well for the development of our molybdenum mine."

The Company is targeting a conservative, smaller, first shipment of 50,000 to 60,000 tonnes to test the systems both at Port Hedland and in China. This is expected to occur in December.

Iron ore prices remain strong with 62% Fe CFR China prices trading above US$160/t. Moly Mines will receive a discount to this price as it will be shipping a product averaging approximately 59% Fe.

Moly Mines has commenced studies to increase the project production rates from 1 million tonnes per annum. This is expected to be achieved with limited additional capital expenditure as current mining and crushing operations are day shift only. Exploration activities are also ongoing to expand the existing iron ore resource base.

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.

Contact Information

  • Moly Mines Limited
    Natalie Frame
    Investor Relations
    +1 416 777 1801
    +1 416 371 7541
    Moly Mines Limited
    Derek Fisher
    Managing Director
    +61 8 94293300