Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

July 31, 2009 09:25 ET

Moly Mines Reports Quarter Activities

TORONTO, ONTARIO--(Marketwire - July 31, 2009) -

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

Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to report the highlights from its Quarterly Activities report for the period ending June 30, 2009 available on the company s website (www.molymines.com) and SEDAR (www.sedar.com).

Spinifex Ridge Molybdenum Project

- Long lead equipment completed being delivered to Western Australia - A$140 million

- Rapidly recovering molybdenum price - US$17.00/lb. Phase 1 - 10mt/a project development ready

Spinifex Ridge Iron Ore Project

- Maiden DSO hematite JORC Resource

- New RC drilling outside of Resource. Significant drill intersections include:

-- 9m @ 62.3% Fe

-- 18m @ 59.2% Fe

-- 7m @ 60.2% Fe

-- 16m @ 61.8% Fe

-- 22m @ 60.1% Fe

- Fe prospects discovered to the west - rock chip assays exceeding 60% Fe

- Scoping studies confirm short term production opportunity with strong cashflows

- Feasibility Study initiated

-- Phase 1 mine plan and optimizations completed

-- Geo-technical drilling completed

-- Mine scheduling underway

-- Large diameter core drilling completed and metallurgical testwork underway

- Immediate development opportunity for production expected mid 2010

Commodity Markets

- Molybdenum prices - US$17.00/lb 30 July - up 105% from 31 March 2009

- Iron ore spot prices reach US$93/t (CFR China - 62% Fe) on July 30 - up 56% from 31 March 2009

Financing

- Interim Financing Facility of US$150 million plus accrued interest due for repayment 31 October 2009

- Restructure and refinancing negotiations commenced

- Iron Ore Project and improving molybdenum markets provide basis for a debt restructure




Spinifex Ridge Iron Ore Project

Drill Results

----------------------------------------------------------------------------
Hole Prospect Easting Northing EOH Azimuth
Number GDA GDA depth (m)
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SRC326(i) Gallifrey 196314 7687739 136 135
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SRC405(ii) Auton NE 196869 7687918 120 270
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SRC414 Auton NE 196900 7687980 136 180
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SRC415 Auton NE 197000 7687880 60 0
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SRC416 Auton NE 197000 7687855 58 0
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SRC417 Auton NE 197000 7687830 60 0
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SRC418 Auton NE 196750 7687855 200 90
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SRC419 Auton NE 196725 7687920 196 90
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SRC420 Auton Derived 196708 7687855 80 180
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SRC421 Auton Derived 196672 7687855 88 180
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SRC422 Auton 196669 7687824 114 180
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SRC423 Auton 196700 7687824 178 180
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SRC424 Gallifrey 196261 7687758 80 180
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SRC425 Auton Derived 196675 7687900 22 180
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SRC426 Auton Derived 196650 7687900 20 180
----------------------------------------------------------------------------
SRC427 Auton Derived 196650 7687875 20 180
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SRC428 Auton Derived 196650 7687850 28 180
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SRC429 Auton Derived 196625 7687875 20 180
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SRC430 Auton Derived 196625 7687850 22 180
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SRC431 Auton Derived 196600 7687875 20 180
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SRC432 Auton Derived 196575 7687850 22 180
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SRC433 Auton Derived 196675 7687875 20 180
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SRC434 Auton Derived 196700 7687875 25 180
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SRC435 Gallifrey 196354 7687813 154 135
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SRC436A Auton NE 196727 7687880 196 90
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SRC437 Gallifrey 196459 7687833 80 150
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SRC438 Gallifrey 196316 7687813 159 135
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SRC439 Auton 196650 7687825 36 180
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SRC440 Auton 196675 7687925 20 180
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SRC441 Auton 196650 7687925 20 180
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SRC442 Auton 196625 7687900 36 180
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SRC443 Auton 196625 7687825 24 180
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SRC444 Gallifrey 196457 7687696 204 315
----------------------------------------------------------------------------


----------------------------------------------------------------------------
Hole Dip From To Interval Fe SiO2 Al2O3 S P LOI
Number (m) (m) (m) (%) (%) (%) (%) (%) (%)
----------------------------------------------------------------------------
SRC326(i) -60 80 89 9 61.28 5.98 0.37 0.00 0.24 5.38
----------------------------------------------------------------------------
and 106 116 10 57.86 11.34 0.26 0.00 0.17 5.08
----------------------------------------------------------------------------
and 120 125 5 53.04 13.17 0.83 0.00 0.37 7.96
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SRC405(ii) -70 77 95 18 59.17 7.10 0.39 0.00 0.17 6.56
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SRC414 -60 No significant result
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SRC415 -60 11 18 6 52.86 12.02 1.81 0.04 0.18 9.44
----------------------------------------------------------------------------
SRC416 -60 17 24 7 60.24 3.44 1.11 0.01 0.29 8.52
----------------------------------------------------------------------------
SRC417 -60 40 47 7 60.14 3.97 0.50 0.01 0.25 8.80
----------------------------------------------------------------------------
SRC418 -70 0 8 8 54.28 10.82 3.07 0.03 0.20 7.47
13 15 2 58.45 11.68 1.05 0.01 0.07 3.38
55 57 2 59.05 14.83 0.18 0.00 0.05 0.33
112 116 4 54.50 21.50 0.17 0.00 0.02 0.27
123 132 9 54.59 21.20 0.26 0.00 0.01 0.37
145 147 2 53.25 23.25 0.35 0.00 0.01 0.12
168 171 3 55.97 19.28 0.25 0.01 0.03 0.21
----------------------------------------------------------------------------
SRC419 -70 125 135 10 57.61 17.18 0.16 0.00 0.02 0.16
153 172 37 53.13 23.65 0.19 0.00 0.03 0.18
----------------------------------------------------------------------------
SRC420 -60 0 5 5 53.40 15.57 2.18 0.01 0.08 5.44
----------------------------------------------------------------------------
SRC421 -60 0 4 4 54.60 10.93 3.48 0.02 0.11 6.68
----------------------------------------------------------------------------
SRC422 -60 1 11 10 55.49 15.47 2.94 0.00 0.03 1.90
16 29 13 54.77 20.33 0.22 0.00 0.04 0.91
32 41 9 54.20 20.89 0.17 0.00 0.04 1.23
78 82 4 53.60 17.69 2.53 0.01 0.07 2.70
----------------------------------------------------------------------------
SRC423 -60 0 16 16 61.82 9.23 0.95 0.00 0.04 1.13
----------------------------------------------------------------------------
SRC424 -60 No significant result
----------------------------------------------------------------------------
SRC425 -60 0 7 7 52.97 20.49 2.38 0.02 0.07 0.95
----------------------------------------------------------------------------
SRC426 -60 No significant result
----------------------------------------------------------------------------
SRC427 -60 0 4 4 54.80 8.31 3.34 0.03 0.10 9.11
----------------------------------------------------------------------------
SRC428 -60 0 22 22 56.88 12.14 1.63 0.02 0.07 4.28
----------------------------------------------------------------------------
SRC429 -60 0 7 7 55.31 12.96 3.23 0.02 0.08 3.93
----------------------------------------------------------------------------
SRC430 -60 1 5 4 56.43 8.76 3.69 0.02 0.12 6.03
7 15 8 50.93 21.08 2.44 0.01 0.06 3.22
----------------------------------------------------------------------------
SRC431 -60 0 6 6 54.03 12.91 2.44 0.03 0.11 6.25
----------------------------------------------------------------------------
SRC432 -60 0 2 2 52.20 10.69 4.12 0.02 0.11 9.59
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SRC433 -60 0 3 3 54.40 10.65 4.58 0.03 0.08 6.24
----------------------------------------------------------------------------
SRC434 -60 No significant result
----------------------------------------------------------------------------
SRC435 -60 No significant result
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SRC436A -60 0 11 11 57.29 7.22 2.95 0.03 0.12 7.18
23 29 6 56.08 18.63 0.28 0.00 0.04 0.76
113 125 12 51.41 25.87 0.18 0.00 0.01 0.32
139 150 11 52.23 24.34 0.51 0.00 0.03 0.34
----------------------------------------------------------------------------
SRC437 -60 2 24 22 60.12 4.02 1.53 0.01 0.28 7.58
----------------------------------------------------------------------------
SRC438 -60 No significant result
----------------------------------------------------------------------------
SRC439 -60 0 10 10 57.58 12.22 1.44 0.01 0.06 3.08
16 26 10 52.18 24.37 0.34 0.01 0.04 0.59
----------------------------------------------------------------------------
SRC440 -60 Not received
----------------------------------------------------------------------------
SRC441 -60 Not received
----------------------------------------------------------------------------
SRC442 -60 Not received
----------------------------------------------------------------------------
SRC443 -60 Not received
----------------------------------------------------------------------------
SRC444 -60 Not received
----------------------------------------------------------------------------

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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 1m internal dilution
4. EOH stands for End Of Hole
5. SRC prefix denotes RC drill holes
6. (i) SRC326 re-entered from 80m
7. (ii) SRC405 re-entered from 79m
-------------------------------------------------------------------------


Rockchip Results

----------------------------------------------------------------------------
Sample Easting Northing Fe Al2O3 SiO2 P S LOI 1000
Number GDA94 GDA94 (%) (%) (%) (%) (%) (%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
SXF42126 197523 7688303 36 0.45 45.1 0.065 0.021 2.49
----------------------------------------------------------------------------
SXF42127 197541 7688310 35.4 0.27 45.2 0.065 0.05 2.97
----------------------------------------------------------------------------
SXF42128 195284 7687823 44.1 0.43 36 0.021 0.016 0.15
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SXF42129 195227 7687826 48 0.55 30.4 0.015 0.01 0.21
----------------------------------------------------------------------------
SXF42130 195138 7687871 59.2 0.52 13.8 0.078 0.061 0.41
----------------------------------------------------------------------------
SXF42131 195228 7687866 61.9 0.32 10.5 0.055 0.022 0.29
----------------------------------------------------------------------------
SXF42132 194684 7687794 61.4 1.12 9.99 0.019 0.063 0.64
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SXF42133 194658 7687804 36.5 0.31 47 0.017 0.009 0.16
----------------------------------------------------------------------------
SXF42134 194512 7687728 48.1 2.26 25.8 0.046 0.049 2.75
----------------------------------------------------------------------------
SXF42135 194500 7687735 40.3 0.4 41.3 0.042 0.037 0.28
----------------------------------------------------------------------------
----------------------------------------------------------------------------
SXF42139 201653 7688288 33 1.06 49.4 0.018 0.089 1.78
----------------------------------------------------------------------------
SXF42142 199748 7688137 33.6 0.26 51.4 0.022 0.024 0.11
----------------------------------------------------------------------------
SXF42143 199481 7688351 44.9 0.22 34.5 0.062 0.008 0.63
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SXF42144 199240 7688311 33.5 0.14 49.6 0.073 0.02 1.97
----------------------------------------------------------------------------
SXF42145 192540 7687150 34.1 0.29 45.1 0.055 0.03 5.26
----------------------------------------------------------------------------
SXF42146 192864 7687200 24.6 0.29 58.9 0.069 0.042 4.52
----------------------------------------------------------------------------
SXF42147 193028 7687252 34.7 3.04 41 0.012 0.07 3.29
----------------------------------------------------------------------------
SXF42148 191755 7686868 24.7 0.55 59.1 0.021 0.047 3.91
----------------------------------------------------------------------------
SXF42149 190907 7686489 39.8 1.14 33.3 0.267 0.045 7.48
----------------------------------------------------------------------------
SXF42150 190849 7686467 55.2 0.33 10.4 0.167 0.008 9.58
----------------------------------------------------------------------------
SXF42151 190643 7686367 56.1 0.47 8.51 0.154 0.033 9.72
----------------------------------------------------------------------------

-----------------------------------------------------------------------
Note
Samples assayed using lithium metaborate fusion and XRF at ALSChemex
in Perth
-----------------------------------------------------------------------


The information in the Quarterly Report that relates to the Exploration Results is based on information compiled by Mr Brendan Cummins who is a Member of the Australian Institute of Geoscientists and is a full-time employee of the Company. Mr Cummins 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 . Mr Cummins is also a Qualified Person with the meaning of such term under NI-43-101. Mr Cummins consent to the inclusion in the Quarterly Report of the matters based on their information in the form and context in which it appears.

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.

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