Moly Mines Limited

Moly Mines Limited

December 30, 2010 10:02 ET

Moly Mines Limited: First Iron Ore Shipment Departs Port Hedland

TORONTO, ONTARIO--(Marketwire - Dec. 30, 2010) - Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to announce that 54,500 tonnes of iron ore from the Spinifex Ridge Iron Ore Project has been loaded on the vessel "MV Father Neptune" and has today sailed from Utah Point in Port Hedland, destination China.

The vessel is carrying iron ore cargo to the value of approximately US$7.9 million at today's iron ore prices. The ore has been sold to Hanlong Metals Ltd pursuant to the iron ore sales agreement that was approved by shareholders at the Company's November 2010 Annual General Meeting.

Payback of the initial capital and development cost of the mine is expected to be rapid provided current market prices for iron ore are maintained.

Managing Director and CEO Dr Derek Fisher said "The maiden shipment is a memorable event and signifies the beginning of a new era for the Company. This first export of Spinifex Ridge product has been achieved on time as targeted by the Company which is a credit to the hard work of our strong management team and excellent technical staff."

Shipment sizes are expected to increase as the mine production rate continues to ramp-up and the mine settles into a standard production regime.

The loading of the maiden shipment ran smoothly with the recently constructed and commissioned Utah Point facilities operating well.

This Moly Mines' milestone was celebrated with a ceremony on board the MV Father Neptune attended by senior management from Moly Mines, the ship's Captain and Chief Engineer plus representatives of the Company's shipping agent, Seacorp.

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.

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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