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Market: TSX / ASX
Sector: General Mining
EPIC: MOL
Latest Price: 0.17  (4.69% Ascending)
52-week High: 1.06
52-week Low: 0.16
Market Cap: 63.51M
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Moly Mines
www.molymines.com
Moly Mines Limited, through its 100% owned subsidiary Moly Metals Australia Pty Ltd, is the 100% owner of the Spinifex Ridge Molybdenum\Copper Project – the world’s most advanced new primary molybdenum development project.
Full Moly Mines profile here
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Moly Mines reports excellent iron ore assay results from Spinifex Ridge

20th May 2009, 7:31 am by Andrew McCrea
Moly Mines reports excellent iron ore assay results from Spinifex Ridge

Moly Mines Ltd (ASX:MOL) has delivered some significant and timely cheer to shareholders with results received from the March 2009 infill drilling programe at Spinifex Ridge Iron Ore Project. 

Without putting too many superlatives to it, the following results show why Spinifex Ridge iron ore could prove to be a handy source of cash flow for Moly shareholders.

Significant results included:
- 40m @ 62% Fe from 37m
- 62m @ 63% Fe from 3m; including 14m @ 67% Fe from 24m
- 40m @ 64% Fe from 2m
- 46m @ 63% Fe from 41m; including 11m @ 66% Fe from 58m
- 41m @ 62% Fe from 37m
- 43m @ 62% Fe from 3m; including 13m @ 65% Fe from 21m

The company called the results, "outstanding" and it is not difficult to see why with these high grade intersections. With grades above 60%, the ore can generally be mined at lower cost and used in blast furnaces requiring only simple preparation.

Moly Mines is now fast-tracking studies for how best to mine and extract the material as Direct Shipping Ore.  Inital internal targets are for a one million tonne per annum production operation, although this could be slightly increased over time. Even at current iron ore prices, this would prove a timely cash generator for the company, while it contemplates the bigger prize at the Spinifex Ridge Molybdenum Project, and evaluating other potential mining acquisitions.

It is understood that negotations are advanced with interested parties to buy the Spinifex Ridge iron ore. It would be logical to assume that Moly Mines could look at selling the ore at the gate, delivering the ore to another producer's stockpile in the Pilbara.

The location of Spinifex Ridge’s project is a major advantage with it being within easy trucking distance over paved roads from the major iron ore exporting infrastructure at Port Hedland, Western Australia.

The results were derived from a 27 hole RC drill program for 2,209m drilled to an average depth of 82m. The drilling was spread across 3 of the 4 prospects - Auton, Auton North East and Gallifrey, all of which occur on the Spinifex Ridge mining leases.

The majority of the drilling was targeted into the Auton North East prospect to expand and close off the mineralisation, with some further infill completed into the Auton and Gallifrey prospects. This program completes the majority of the RC drilling required to finalise a maiden Iron Resource estimate on these small but rich iron occurrences.

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