Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

April 30, 2009 10:33 ET

Moly Mines Reports Quarter Activities

TORONTO, ONTARIO--(Marketwire - April 30, 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 March 31, 2009 available on SEDAR (www.sedar.com).

Spinifex Ridge Molybdenum

Moly Mines has completed an advanced engineering study ("Study") on a smaller, start-up Spinifex Ridge Molybdenum Project. This has demonstrated a significantly reduced capital hurdle whilst maintaining attractive financial fundamentals. The highlights of the Study include:

- 10 million tonnes/annum (expansion potential to 11.3mt/a);

- 24 year mine life;

- 0.07% Mo head grade for first 10 years;

- A$528 million capital cost;

- US$7.80/lb Mo operating cost; and

- A$461 million NPV ($17.50/lb long term Mo price)

The development of a smaller case Spinifex Ridge start-up project arose from the significant deterioration in the global capital markets and from the accompanying rapid decline in the molybdenum metal price during the last 5 months as the world's steel production slumped. The Study has demonstrated a technically viable development opportunity that benefits from the detailed engineering and design work completed for the larger 20mt/a definitive feasibility study with an operating cost structure well below the medium to long term molybdenum price. The 10 year average molybdenum price to March 31, 2009 (including the dramatic slump of October 2008 to March 2009) is US$15.00/lb.

This advanced engineering study is based on geology, resources, metallurgy, process design and engineering data reported September 25, 2007 in the 20 million tonne per annum definitive feasibility study ("DFS") and detailed engineering work completed thereafter.

Spinifex Ridge Iron Ore

The resource definition drilling programme was completed on the three iron ore occurrences with an initial resource calculation currently underway. Permitting has commenced for mining these resources as has detailed mine planning and engineering.

New Project Acquisition

A large number of potential acquisition projects have been assessed by the Company with negotiations now underway on a number of those that have been shortlisted.

The information in this report that relates to Exploration Results is based on information compiled by Dr Derek Fisher who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Fisher is Managing Director 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 . Dr. Fisher is also a Qualified Person within the meaning of such term under NI-43-101. 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.

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