Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

March 11, 2009 10:03 ET

Moly Mines Reports Outstanding Drill Results and Director Resignation

TORONTO, ONTARIO--(Marketwire - March 11, 2009) -

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

Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to advise further outstanding iron ore drill results have been received from the maiden drill
program at the Gallifrey prospect at Spinifex Ridge.




Highlights include:


- 20m @ 64% Fe
- 31m @ 64% Fe
- 17m @ 61% Fe
- 42m @ 60% Fe
- 15m @ 62% Fe
- 20m @ 61% Fe
- 30m @ 61% Fe, including 13m @ 63% Fe
- 79m @ 66% Fe, including 24m @ 67% Fe
- 36m @ 63% Fe, including 6m @ 65% Fe
- 33m @ 63% Fe
- 56m @ 62% Fe, including 17m @ 66% Fe



The drill program comprised 30 RC drill holes for 2,011m and was designed to follow-up an area of high grade iron mineralisation where previous rockchip samples had yielded iron results in excess of 62% Fe. The drill results have also shown that Gallifrey is low in contaminants such as silica and alumina and would blend well with potential resources as Auton and Dalek.

The western portion of the Gallifrey prospect was drilled using a 40 x 40m triangular grid with vertical holes down to a depth of at least 50m. On the eastern side of the prospect a local grid was established with angled holes drilled towards 135degrees on drill lines 40m apart at approximately 20m centres. The drilling covered an area 350m x 160m while mapping indicates surface mineralisation extending over an area 300m long x 100m wide.

The results of the systematic rockchipping, mapping and RC drilling have identified structural corridors that appear to be controlling the distribution of the high grade iron intercepts. Further analysis and interpretation of the various datasets will assist in defining the orientation of the mineralisation and targeting future drill holes into this promising target. Once an infill program is finalised an RC rig will be contracted to re-commence drilling the Gallifrey prospect by the end of the March.

These results complement the results received from the Dalek and Auton prospects that were announced in late February.

Director Resignation

Mr Paul Willis has resigned as a director of the Company, effective March 10, 2009. Mr Willis has recently taken up a new position in equities broking overseas and the particulars of Mr Willis' employment require him to cease listed company board involvement.

Mr Willis was appointed to the board of directors in January 2006 and has been Chairman since October 2006. During his tenure, Mr Willis has presided over approximately A$330 million in exploration and development capital financings for the advancement of the Spinifex Ridge Molybdenum Project. The board thanks Mr Willis for his contribution to the Company and wish him every success in the future.




Table 1 Gallifrey Drilling Results

----------------------------------------------------------------------------
Hole Easting Northing EOH depth Azimuth Dip From
Number GDA GDA (m) (m)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
SRC302 196274 7687794 50 360 -90 No significant result
----------------------------------------------------------------------------
SRC303 196232 7687802 50 360 -90 0
----------------------------------------------------------------------------
SRC304 196197 7687799 50 360 -90 0
----------------------------------------------------------------------------
SRC305 196161 7687797 50 360 -90 0
----------------------------------------------------------------------------
SRC306 196144 7687765 50 360 -90 No significant result
----------------------------------------------------------------------------
SRC307 196175 7687759 50 360 -90 Low grade 0
and 11
and 20
----------------------------------------------------------------------------
SRC308 196154 7687747 50 360 -90 No significant result
----------------------------------------------------------------------------
SRC309 196120 7687736 50 360 -60 Low grade 0
----------------------------------------------------------------------------

----------------------------------------------------------------------------
SRC310 196156 7687712 120 90 -60 No significant result
----------------------------------------------------------------------------
SRC311 196215 7687767 50 360 -90 5
----------------------------------------------------------------------------
SRC312 196221 7687733 50 360 -90
----------------------------------------------------------------------------
SRC313 196288 7687766 80 180 -60 0
18
----------------------------------------------------------------------------
SRC314 196261 7687759 50 360 -90 No significant result
----------------------------------------------------------------------------
SRC315 196232 7687719 80 180 -60 No significant result
----------------------------------------------------------------------------
SRC316 196262 7687670 80 180 -60 No significant result
----------------------------------------------------------------------------
SRC317 196273 7687708 80 360 -60 Low grade 0
----------------------------------------------------------------------------
SRC318 196332 7687677 60 135 -60 6
Including 28
----------------------------------------------------------------------------
SRC319 196356 7687705 80 135 -60 3
Low grade 37
Low grade 59
----------------------------------------------------------------------------
SRC320 196345 7687717 80 135 -60 0
----------------------------------------------------------------------------
SRC321 196387 7687723 60 135 -60 No significant result
----------------------------------------------------------------------------
SRC322 196375 7687747 80 135 -60 3
Including 20
----------------------------------------------------------------------------
SRC323 196366 7687766 80 135 -60 1
Including 48
----------------------------------------------------------------------------
SRC324 196302 7687748 80 315 -60 0
Including 27
----------------------------------------------------------------------------
SRC325 196303 7687740 80 225 -60 Low grade 0
----------------------------------------------------------------------------
SRC326 196314 7687739 81 135 -60 No significant result
----------------------------------------------------------------------------
SRC327 196436 7687776 60 135 -60 0
----------------------------------------------------------------------------
SRC328 196421 7687791 80 135 -60 53
----------------------------------------------------------------------------
SRC329 196404 7687761 60 135 -60 10
----------------------------------------------------------------------------
SRC330 196393 7687774 80 135 -60 1
Including 24
----------------------------------------------------------------------------
SRC331 196378 7687776 60 315 -60 Low grade 0
----------------------------------------------------------------------------


----------------------------------------------------------------------------
Hole To Interval Fe SiO2 Al2O3 S P LOI
Number (m) (m) (%) (%) (%) (%) (%) (%)
----------------------------------------------------------------------------
SRC302
----------------------------------------------------------------------------
SRC303 20 20 64.10 3.28 1.10 0.01 0.10 3.61
----------------------------------------------------------------------------
SRC304 31 31 63.93 2.26 0.99 0.01 0.17 4.77
----------------------------------------------------------------------------
SRC305 4 4 58.43 9.10 1.31 0.00 0.13 5.51
----------------------------------------------------------------------------
SRC306
----------------------------------------------------------------------------
SRC307 4 4 56.20 5.51 3.75 0.01 0.36 9.16
14 3 58.67 4.47 2.34 0.01 0.39 8.04
25 5 59.80 4.13 1.60 0.01 0.21 8.15
----------------------------------------------------------------------------
SRC308
----------------------------------------------------------------------------
SRC309 6 6 50.80 18.26 4.02 0.01 0.17 4.03
----------------------------------------------------------------------------

----------------------------------------------------------------------------
SRC310
----------------------------------------------------------------------------
SRC311 22 17 60.81 3.49 1.78 0.01 0.16 7.25
----------------------------------------------------------------------------
SRC312
----------------------------------------------------------------------------
SRC313 5 5 61.66 5.464 0.29 0.0026 0.1606 5.646
60 42 60.37 6.32 1.05 0.01 0.18 5.77
----------------------------------------------------------------------------
SRC314
----------------------------------------------------------------------------
SRC315
----------------------------------------------------------------------------
SRC316
----------------------------------------------------------------------------
SRC317 4 4 56.75 9.42 3.02 0.01 0.14 5.88
----------------------------------------------------------------------------
SRC318 44 38 59.70 4.48 2.14 0.00 0.24 7.29
43 15 62.03 1.88 1.34 0.00 0.24 7.43
----------------------------------------------------------------------------
SRC319 23 20 60.73 4.44 2.11 0.01 0.14 5.59
49 12 52.98 19.94 0.22 0.00 0.13 3.79
74 15 55.52 16.13 0.10 0.00 0.16 3.96
----------------------------------------------------------------------------
SRC320 48 48 60.87 5.79 1.10 0.00 0.18 5.44
----------------------------------------------------------------------------
SRC321
----------------------------------------------------------------------------
SRC322 33 30 60.54 7.95 1.40 0.01 0.10 3.33
33 13 63.45 3.20 1.21 0.00 0.14 4.42
----------------------------------------------------------------------------
SRC323 80 (EOH) 79 65.93 1.99 0.93 0.01 0.12 2.39
72 24 67.04 0.81 0.38 0.00 0.15 2.57
----------------------------------------------------------------------------
SRC324 36 36 62.71 5.77 0.89 0.01 0.10 3.27
33 6 65.03 2.37 0.71 0.00 0.12 3.55
----------------------------------------------------------------------------
SRC325 19 19 53.84 14.79 2.10 0.01 0.10 4.46
----------------------------------------------------------------------------
SRC326
----------------------------------------------------------------------------
SRC327 33 33 62.79 1.79 0.87 0.01 0.22 6.96
----------------------------------------------------------------------------
SRC328 65 12 58.23 6.68 1.07 0.01 0.26 8.25
----------------------------------------------------------------------------
SRC329 22 12 59.17 6.97 2.33 0.01 0.16 5.38
----------------------------------------------------------------------------
SRC330 57 56 62.38 4.64 1.42 0.01 0.14 4.16
41 17 65.53 1.75 0.59 0.00 0.15 3.52
----------------------------------------------------------------------------
SRC331 3 3 52.57 13.91 3.94 0.01 0.21 6.24
----------------------------------------------------------------------------


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.

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

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 Reserves' 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
    (416) 777-1802 (FAX)
    Email: info@molymines.com
    Website: www.molymines.com