Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

September 18, 2008 12:02 ET

Moly Mines Limited: Iron Mineralisation at Spinifex Ridge

TORONTO, ONTARIO--(Marketwire - Sept. 18, 2008) -

THESE PRESS MATERIALS ARE NOT FOR RELEASE IN THE UNITED STATES.

Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to provide an update on drilling activities for the Iron Mineralisation at the Spinifex Ridge site.

The RC drill program comprised a total of 31 holes for 2,237m to an average depth of 72m and preliminary assaying has been completed on 23 of the holes using a portable XRF instrument. Geological logging has reported strong hematite iron mineralisation in all but 2 of the 31 holes.

Further high grade drill intersects encountered include:

- 30 m @ 58% Fe from 22m, including 8 m @ 61% Fe

- 20 m @ 60% Fe from surface, including 10 m @ 64% Fe

- 55 m @ 60% Fe from surface, including 25 m @ 62 % Fe

- 54 m @ 57% Fe from surface, including 11m @ 61% Fe

- 69 m @ 57% Fe from surface, including 6m @ 62% Fe

- 17 m @ 59% Fe from surface, including 12m @ 61% Fe

- 47 m @ 59% Fe from 3m, including 22m @ 63% Fe

The RC drilling was designed to follow-up previously reported significant Fe intersections from the Dalek and Auton (Figure 1) prospects. A full tabulation of the results from the handheld XRF analysis is provided in Table 1; however the handheld instrument does not report SiO2 and Al2O3. Comprehensive laboratory assaying is currently underway but is being delayed by significant backlogs in the laboratories. These will be reported when received.

A diamond drilling (DD) program is currently underway to test the depth extension of the iron mineralisation. Geological logging has now recorded massive hematite to depths of 150 metres. Assays are awaited.

The iron potential of the area has been further enhanced by the discovery of yet another area of outcropping hematite mineralisation to the west of the Auton prospect. This has been named Galifrey (Figure 1) and it covers an area about the same size as Auton. Of the 12 rock chip samples gathered from the prospect all but 1 sample returned a value greater than 60% Fe with 4 samples greater than 65% Fe. (See Table 2).

Coincident with the three areas of hematite mineralisation is a strong geophysical magnetic anomaly extending over about 1.6km suggesting that it is underlain by magnetite iron mineralisation. The Company has commenced its initial investigation of this target with a north-south fence of diamond drilling designed to encounter the magnetite target at depth.

Spinifex Ridge is well positioned to capitalize on the current, sustained iron ore boom due to its proximity to key infrastructure required for such bulk tonnage commodities. It has access to the paved Marble Bar - Port Hedland road and the world class shipping and loading facilities at Port Hedland which are 160km away. The advantages in developing and mining an iron ore resource in parallel with the progression of the Spinifex Ridge Mo-Cu operation represents an outstanding opportunity for Moly Mines to significantly enhance the value of the overall project while only incurring minor additional costs.

NOTE: To view Figure 1 Spinifex Ridge Fe prospect map, please visit the following link: http://media3.marketwire.com/docs/SpinifexRidge.pdf.



Table 1: RC drilling results
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Hole East- North- EOH Azi- Dip From To Inter- Fe
Number ing ing depth muth (m) (m) val (%)
GDA GDA (m) (m)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
SRC246 196850 7687790 120 180 -60 5 12 7 55
and 22 52 30 58
including 29 37 8 61
---------------------------------------------------------------------------
SRC247 196825 7687800 133 180 -60 47 80 33 55
including 59 68 9 60
---------------------------------------------------------------------------
---------------------------------------------------------------------------
SRC248 196825 7687750 58 180 -60 0 20 20 60
including 7 17 10 64
and 44 58 14 59
including 48 55 7 61
---------------------------------------------------------------------------
SRC249 196834 7687757 55 180 -60 0 55 55 60
including 2 27 25 62
---------------------------------------------------------------------------
SRC250 196800 7687740 80 180 -60 0 54 54 57
including 29 40 11 61
---------------------------------------------------------------------------
---------------------------------------------------------------------------
SRC251 196750 7687725 50 180 -60 1 10 9 54
---------------------------------------------------------------------------
SRC252A 196750 7687750 72 180 -60 0 69 69 57
including 27 33 6 62
---------------------------------------------------------------------------
---------------------------------------------------------------------------
SRC253A 196600 7687700 100 180 -60 2 7 5 56
---------------------------------------------------------------------------
SRC254A 196600 7687725 19 180 -60 2 18 16 55
---------------------------------------------------------------------------
SRC255 196600 7687820 80 180 -60 0 2 2 52
---------------------------------------------------------------------------
SRC256 196640 7687710 61 180 -60 0 14 14 54
and 59 61 EOH 2 55
---------------------------------------------------------------------------
---------------------------------------------------------------------------
SRC257 196625 7687750 30 180 -60 1 25 24 54
---------------------------------------------------------------------------
SRC258 196650 7687775 30 180 -60 0 20 20 54
---------------------------------------------------------------------------
SRC259 196700 7687710 43 180 -60 0 10 10 53
---------------------------------------------------------------------------
---------------------------------------------------------------------------
SRC260 196700 7687735 120 180 -60 0 11 11 55
and 19 29 10 52
---------------------------------------------------------------------------
---------------------------------------------------------------------------
No significant
SRC261 196900 7687775 37 180 -60 result
---------------------------------------------------------------------------
SRC262 196900 7687800 49 180 -60 48 49 EOH 1 52
---------------------------------------------------------------------------
SRC263 196945 7687900 50 360 -60 0 30 30 56
---------------------------------------------------------------------------
---------------------------------------------------------------------------
SRC264 196945 7687875 80 360 -60 8 25 17 59
including 12 24 12 61
---------------------------------------------------------------------------
SRC265 196970 7687875 80 360 -60 7 19 12 52
---------------------------------------------------------------------------
---------------------------------------------------------------------------
SRC266 196920 7687875 80 360 -60 3 50 47 59
including 27 49 22 63
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Not
SRC267 196800 7687775 10 180 -60 available
---------------------------------------------------------------------------
SRC268 196800 7687800 122 180 -60 0 14 14 55
---------------------------------------------------------------------------
No significant
SRC269 196725 7687825 50 180 -60 result
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Notes:
1. Analysis performed using a INNOV handheld XRF
2. Sample material was pulversied to 90% passing 75 micron
3. A QA/QC protocol was used that relied upon the insertion of Fe
standards, duplicates and blanks
4. This data is preliminary in nature and whilst the handheld XRF analyzer
is precise it may have a 10 to 15% error in accuracy
5. True width is unknown at this time


Table 2: Galifrey Rock Chip Samples
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Rock Easting Northing Fe Al2O3 SiO2 P S LOI 1000
Sample No AGD94 AGD95 (%) (%) (%) (%) (%) (%)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
SXF42114 196289 7687758 63.7 0.55 1.39 0.171 0.016 6.48
---------------------------------------------------------------------------
SXF42115 196273 7687722 55.8 1.46 13 0.079 0.067 4.85
---------------------------------------------------------------------------
SXF42116 196228 7687688 62.5 0.58 1.88 0.146 0.03 7.58
---------------------------------------------------------------------------
SXF42117 196260 7687656 61.8 1.98 2.97 0.272 0.055 5.77
---------------------------------------------------------------------------
SXF42118 196332 7687679 65.5 1.06 1.94 0.144 0.032 2.78
---------------------------------------------------------------------------
SXF42119 196251 7687810 67.1 0.46 1.18 0.064 0.012 2.13
---------------------------------------------------------------------------
SXF42120 196231 7687778 67 0.58 0.89 0.07 0.017 2.43
---------------------------------------------------------------------------
SXF42121 196180 7687729 63.1 0.99 1.88 0.194 0.023 6.18
---------------------------------------------------------------------------
SXF42122 196159 7687704 63.3 0.85 0.99 0.253 0.036 6.87
---------------------------------------------------------------------------
SXF42123 196395 7687752 63 0.81 5.93 0.102 0.032 2.67
---------------------------------------------------------------------------
SXF42124 196425 7687756 65.6 0.49 0.55 0.223 0.009 4.55
---------------------------------------------------------------------------
SXF42125 196465 7687795 60.7 1.31 7.81 0.249 0.072 2.87
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Samples assayed using lithium metaborate fusion and XRF at ALSChemex in
Perth


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.

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 Reserve's' 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."

Contact Information

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