Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

May 19, 2009 13:00 ET

Moly Mines Company Update

TORONTO, ONTARIO--(Marketwire - May 19, 2009) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to provide a Company update including outstanding Fe drill results received, maiden resource calculation being finalized and the appointment of Mr. David Craig as Chairman.

Spinifex Ridge Iron Ore

Results from the March 2009 infill drill programs have been received. Significant results include:

- 40m @ 62% Fe from 37m

- 62m @ 63% Fe from 3m; including 14m @ 67% Fe from 24m

- 40m @ 64% Fe from 2m

- 46m @ 63% Fe from 41m; including 11m @ 66% Fe from 58m

- 41m @ 62% Fe from 37m

- 43m @ 62% Fe from 3m; including 13m @ 65% Fe from 21m


These results are derived from a 27 hole RC drill program for 2,209m drilled to an average depth of 82m - refer Table 1. The drilling was spread across 3 of the 4 prospects - Auton, Auton North East and Gallifrey, all of which occur on the Spinifex Ridge mining leases.

The majority of the drilling was targeted into the Auton North East prospect to expand and close off the mineralisation, with some further infill completed into the Auton and Gallifrey prospects.

This program completes the majority of the RC drilling required to finalize a maiden Iron Resource estimate on these small but rich iron occurrences.

The Company s senior engineers and technical personnel are now fast-tracking detailed studies for mining and exploiting this material as Direct Shipping Ore (DSO). These studies are initially targeting a 1 million tonne per annum operation, and currently, advanced discussions are underway with parties interested in assisting with and/or purchasing the production. Spinifex Ridge s location is a major advantage with it being within easy trucking distance over paved roads from the major iron ore exporting infrastructure at Port Hedland.

Appointment of Board Chairman

The Board of Moly Mines is very pleased to advise the appointment of Mr David Craig to the Company as non-executive Chairman.

Mr Craig (B.Juris (Hons) LLB (Hons) LLM (London) GDipAppFin (Finsia) MAICD) is an experienced businessman and lawyer, who has held and holds Executive and Board positions in the fields of law, financial services and the resources industry.

As a partner of a major Perth law firm he specialised in resources and commercial legal advice, which included work on resources joint ventures, the acquisition and disposal of interests in companies and projects, and capital raisings by companies. This was followed by ten years in the financial services industry as a stockbroker and an executive director in a national stockbroking and investment banking company. Mr Craig then spent five years working with Woodside Petroleum Ltd in an Executive position in the field of public and government affairs. He brings to the Board expertise in the law, financial markets, stakeholder engagement, relationship management, strategic planning, and risk management.

Mr Craig s remuneration package will include 100,000 options in the Company exercisable at A$0.40 per share expiring 31 December 2010 consistent with the allocations to other non-executive directors announced in January 2009. The grant of the options is subject to shareholder approval which will be sought at an appropriate time in the coming months.

The Company also advises Mr Kurt Talbot has resigned from the Board and the Board thank Mr Talbot for his services.

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 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'. Dr. Fisher is also a Qualified Person within the meaning of such term under NI-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.

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.



Table 1
---------------------------------------------------------------------------
EOH
Hole Prospect Easting Northing depth Azimuth Dip
Number GDA GDA (m)
---------------------------------------------------------------------------
SRC387 Auton NE 196877.9 7687943 109 180 -60
---------------------------------------------------------------------------
SRC388 Auton NE 196874.8 7687913 100 180 -60
Low Grade
---------------------------------------------------------------------------
SRC389 Auton NE 196902.7 7687938 100 180 -60
Including
---------------------------------------------------------------------------
SRC390 Auton NE 196925.4 7687933 79 180 -60
and
---------------------------------------------------------------------------
SRC391 Auton NE 196947.8 7687831 100 360 -60
Including
---------------------------------------------------------------------------
SRC392 Auton NE 196926 7687829 97 360 -60
and
---------------------------------------------------------------------------
SRC393 Auton NE 196975.6 7687831 85 360 -60
---------------------------------------------------------------------------
SRC394 Auton NE 196896.3 7687883 115 180 -60
and
and
and
---------------------------------------------------------------------------
SRC395 Auton NE 196876.6 7687871 109 180 -60
and
---------------------------------------------------------------------------
SRC396 Auton NE 196901.7 7687807 100 315 -60
---------------------------------------------------------------------------
SRC397 Auton NE 196871.9 7687801 79 135 -60 Low Grade
---------------------------------------------------------------------------
No significant
SRC398 Auton NE 196924.6 7687798 79 360 -60 result
---------------------------------------------------------------------------
SRC399 Auton 196822.1 7687706 115 360 -60
and
---------------------------------------------------------------------------
SRC400 Auton 196850.2 7687722 85 360 -60
and
---------------------------------------------------------------------------
SRC401 Auton 196773.5 7687800 85 180 -60 Low Grade
---------------------------------------------------------------------------
SRC402 Auton 196651.3 7687781 100 180 -60
---------------------------------------------------------------------------
SRC403 Auton 196701.6 7687742 80 360 -60
Including
---------------------------------------------------------------------------
No significant
SRC404 Auton NE 196902.4 7687941 80 360 -60 result
---------------------------------------------------------------------------
SRC405 Auton NE 196868.9 7687918 79 270 -70
---------------------------------------------------------------------------
No significant
SRC406 Gallifrey 196259.6 7687838 50 360 -90 result
---------------------------------------------------------------------------
No significant
SRC407 Gallifrey 196220.2 7687840 50 360 -90 result
---------------------------------------------------------------------------
No significant
SRC408 Gallifrey 196179.2 7687840 50 360 -90 result
---------------------------------------------------------------------------
SRC409 Gallifrey 196348.1 7687750 49 135 -60
---------------------------------------------------------------------------
SRC410 Gallifrey 196404.9 7687759 80 315 -60
---------------------------------------------------------------------------
SRC411 Gallifrey 196417.2 7687794 80 315 -60
---------------------------------------------------------------------------
SRC412 Gallifrey 196343.5 7687685 13 315 -60 Low Grade
---------------------------------------------------------------------------
SRC413 Gallifrey 196348.2 7687753 61 315 -60
Including
---------------------------------------------------------------------------
---------------------------------------------------------------------------


Hole From To Interval Fe SiO2 Al2O3 S P LOI
Number (m) (m) (m) (%) (%) (%) (%) (%) (%)
---------------------------------------------------------------------------
SRC387 37 77 40 62.26 2.50 0.86 0.00 0.16 5.47
---------------------------------------------------------------------------
SRC388 40 46 6 58.18 6.03 0.87 0.00 0.21 8.76
51 62 11 52.17 13.47 0.85 0.00 0.20 9.14
---------------------------------------------------------------------------
SRC389 3 65 62 63.31 3.24 0.89 0.00 0.15 4.30
24 38 14 67.36 2.17 0.61 0.00 0.05 0.69
---------------------------------------------------------------------------
SRC390 2 42 40 63.80 3.19 1.09 0.00 0.17 3.83
45 48 3 61.83 3.06 0.41 0.01 0.27 7.10
---------------------------------------------------------------------------
SRC391 41 87 46 63.06 2.81 0.52 0.00 0.15 5.72
58 69 11 65.59 2.50 0.15 0.00 0.08 3.14
---------------------------------------------------------------------------
SRC392 8 16 8 58.89 11.59 1.56 0.01 0.10 2.27
37 78 41 61.75 3.62 0.35 0.00 0.13 4.36
---------------------------------------------------------------------------
SRC393 50 60 10 62.44 3.25 0.44 0.00 0.11 4.58
---------------------------------------------------------------------------
SRC394 21 28 7 63.04 4.38 1.88 0.03 0.04 3.15
34 42 8 61.34 4.47 1.53 0.01 0.16 5.53
76 87 11 60.68 5.94 1.21 0.01 0.10 3.99
90 94 4 61.35 4.25 1.80 0.00 0.12 4.93
---------------------------------------------------------------------------
SRC395 29 47 18 57.79 2.27 2.77 0.03 0.39 10.82
57 80 23 58.64 6.30 1.63 0.03 0.20 6.30
---------------------------------------------------------------------------
SRC396 77 89 12 60.14 6.68 0.87 0.02 0.18 4.81
---------------------------------------------------------------------------
SRC397 31 42 11 51.75 17.78 1.42 0.01 0.20 6.23
---------------------------------------------------------------------------
SRC398
---------------------------------------------------------------------------
SRC399 35 75 40 58.59 4.96 1.94 0.01 0.09 8.75
88 98 10 58.88 13.61 0.87 0.00 0.05 0.83
---------------------------------------------------------------------------
SRC400 32 44 12 58.52 12.13 2.47 0.01 0.04 1.40
65 75 10 53.69 21.77 0.55 0.00 0.04 0.57
---------------------------------------------------------------------------
SRC401 51 62 11 55.06 20.40 0.20 0.00 0.04 0.40
---------------------------------------------------------------------------
SRC402 86 100 (EOH) 14 57.91 10.55 3.08 0.01 0.11 2.67
---------------------------------------------------------------------------
SRC403 5 47 42 58.21 8.95 2.80 0.01 0.12 4.08
32 45 13 62.52 5.50 1.46 0.01 0.11 3.15
---------------------------------------------------------------------------
SRC404
---------------------------------------------------------------------------
SRC405 77 79 (EOH) 2 57.55 7.51 0.65 0.00 0.18 7.34
---------------------------------------------------------------------------
SRC406
---------------------------------------------------------------------------
SRC407
---------------------------------------------------------------------------
SRC408
---------------------------------------------------------------------------
SRC409 30 48 18 61.78 8.03 0.45 0.00 0.15 2.71
---------------------------------------------------------------------------
SRC410 0 27 27 60.09 7.98 1.75 0.01 0.10 3.70
---------------------------------------------------------------------------
SRC411
---------------------------------------------------------------------------
SRC412 0 13 13 55.38 12.42 1.73 0.01 0.16 5.61
---------------------------------------------------------------------------
SRC413 3 46 43 61.73 5.86 1.89 0.01 0.11 3.49
21 34 13 65.40 3.44 0.76 0.00 0.08 2.00
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Notes:

1. Co-ordinate Datum is GDA94 Zone 51

2. Samples assayed using lithium metaborate fusion and XRF at ALSChemex
in Perth

3. Intervals allow 2m internal dilution

4. EOH stands for End Of Hole

5. SRC, SRCD & SRD prefixes denote RC, RC with diamond tail and diamond
drill holes respectively

Contact Information

  • Moly Mines Limited
    Derek Fisher
    Managing Director
    +61 8 94293300
    or
    Moly Mines Limited
    Natalie Frame
    Investor Relations Coordinator
    416-777-1801
    www.molymines.com