Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

November 17, 2006 12:09 ET

Moly Mines Limited: Pilot Plant Testing

TORONTO, ONTARIO--(CCNMatthews - Nov. 17, 2006) -

Not For Distribution to US Newswire Services or for Dissemination in the United States

Moly Mines Limited, (TSX:MOL)(ASX:MOL) is pleased to advise of the progress of the Pilot Plant work program on ore from the Spinifex Ridge Molybdenum / Copper Project in Western Australia.

The Pilot Plant program is the culmination of the 12 month metallurgical testwork for the Spinifex Ridge Bankable Feasibility Study ("BFS"). The $750,000 program will confirm the metallurgical performance and characterization of the Spinifex Ridge ore. The Pilot Plant results are on schedule for release to process design engineers by the end of this calendar year.

Significantly, Pilot Plant testing to date has confirmed that a 50% + molybdenum concentrate, with low levels of typical penalty elements, can be produced from Spinifex Ridge ore.

The aim of the piloting phase is to:

- Confirm the flotation processing circuit as developed in bench scale testwork;

- Generate plant design data;

- Provide impurity levels within the concentrate samples; and

- Provide representative molybdenum and copper concentrate samples for marketing
and downstream processing evaluation purposes.

Flotation piloting operations commenced on 31 October at Ammtec Limited's metallurgical facilities in Perth. The first phase of the pilot operation involves treatment of a representative 20 tonne parcel of rock chip material. This phase of work is approximately 50% complete and is expected to be finalized within the next 10 days.

The second phase of the pilot processing will be undertaken with a 20 tonne parcel of large diameter diamond drill core. This material will be processed in the last week of November and will be followed by a phase of product characterization to establish the full chemical and physical parameters of both the molybdenum and copper concentrates produced.

The effects of the alternative flotation reagents and ore variability are being evaluated during the Pilot Plant program.

A parallel metallurgical testwork program is currently underway at two laboratories trialling the use of High Pressure Grinding Rolls ("HPGR") as an alternative method to sag milling of Spinifex Ridge ore.

The HGPR technology has the potential to reduce power requirements and operating costs for the Spinifex Ridge Project. The trials are being undertaken at the SGS Lakefield Ore test facility and at the CSIRO Minerals facility with testing conducted on crushed diamond drill core samples from different Spinifex Ridge rock types. The initial phase of work at each facility has focused on optimization of operating parameters. Closed circuit testing will be conducted after full evaluation of the open circuit program. The work is expected to be completed in early December which will be followed by detailed analysis and review.

The overall metallurgical testwork program will be used for final plant design by lead engineers WorleyParsons. Engineering and plant design works are scheduled for completion during 1st quarter 2007.

Dr. Derek Fisher, a designated Qualified Person pursuant to NI 43-101 of the Canadian Securities Administrators, is responsible for the verification and quality assurance of the Company's exploration data and analytical results.

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