Moly Mines Reports Quarter Activities Thu Nov 1, 5:00 PM Email Story IM Story Printable View TORONTO, ONTARIO--(Marketwire - Nov. 1, 2007) - Moly Mines Limited, (TSX: MOL.TO)(ASX: MOL.AX) is pleased to report the highlights of their Quarterly Cash Flow and Quarterly Activities Report available on the Company website ( www.molymines.com) and on SEDAR ( www.sedar.com).
Highlights:
- Spinifex Ridge Molybdenum Project Definitive Feasibility Study ("DFS") completed.
- DFS demonstrated a technically viable project with robust economics and a strong debt carrying capacity.
- 316 million tonnes of Resource converted to Proven and Probable Reserves.
- Project financing schedule and plan endorsed by the Board, global investment banks short-listed and submissions received to arrange a total debt and equity financing package.
- Project Implementation and Construction Schedule targets a July 2009 start-up.
- Lump sum supply contracts with Polysius AG of Germany for long-lead plant equipment expanded to EURO47.5 million.
- Key Project commercial agreements advancing, EPCM contract, Mining contract due end of November.
- Detailed design and engineering commenced. Additional office space taken to integrate design team with the Company's senior technical staff.
- Native title land access deed completed with Njamal people, all native title matters resolved.
- Mining lease application granted covering areas of plant and infrastructure location. All required mining leases now granted.
- Gold assets sold to Cortona Resources Limited on July 5, 2007 - A$5 million cash and shares/options received on settlement.
- A$19.7m on hand at Quarter end.
The Company also reports the recent appointment of a Resident Manager for the Spinifex Ridge site as well as expansion to the process design team in recent weeks, including the appointment of senior metallurgist and maintenance planners bringing the dedicated Spinifex Ridge owners team to over 35 full-time employees.
During the quarter the Company notes that it focussed on delivering as much construction and execution certainty as possible prior to taking the Spinifex Ridge Project to the financial markets.
The most substantial measure taken to confirm the July 2009 start up time was the completion of full form lump sum supply contracts with Polysius AG of Germany, a Thyssen Krupp company. This expanded agreement superseded a binding Letter of Intent executed in April. Polysius will design, engineer, manufacture and deliver to Port Hedland the primary crusher, 3 High Pressure Grinding Roll units, 2 ball mills and capital spares for a total cost of EURO47.5 million.
The Company added that progress was also being made with respect to the award of the Mining, Earthmoving and Civil Contracts. The award of detailed design and construction of the Secondary Crusher. Gas Supply and Power Generation, EPCM contract, filtration and tailings dry stacking management systems, key Personnel Recruitment and the infrastructure including camp accommodation and airport.
The 6 week statutory comment period for the Public Environmental Review ("PER") ended in the first week of October and the Company advises that it is now addressing submissions made from various stakeholders. The approvals process remains on track and is expected by end of Quarter 1, 2008.
Other quarter activities reported include the recommencement of exploration drilling at Spinifex Ridge after a break of approximately 6 months. The planned 9,000m program includes geotechnical drilling on the northern wall of the planned open pit and for the conveyor tunnel from the primary crusher to the secondary crusher stockpile site. Exploration drilling is also underway around the periphery of the deposit to better define the outer limits of the mineralisation.
Moly Mines further reports that a geophysical Induced Polarisation (IP) survey has been planned for the 4th quarter. This is a large survey that has been designed to identify additional drill targets well beyond the current resource and discover potential blind mineralisation at depth.
The Company notes that although it continues to receive strong product off-take enquiries it has refrained from entering into any such arrangements pending conclusion of the final structure of the financing arrangements for execution of the Project.
About Moly Mines
Moly Mines Limited is an independent Australian resources company focused on the development of major specialty, base and precious metals projects. Spinifex Ridge, located in the development-friendly Pilbara region of Western Australia, hosts a 470 million tonne Molybdenum and Copper resource that can sustain a 20 million tonne mining operation for more than 20 years.
