Molybdenum

[Lone Clone]

Moly Mines Limited : Spinifex Ridge Increased to 20 Million Tonnes pa
Wed Aug 1, 8:37 AM

http://ca.news.finance.yahoo.com/s/01082007/28/link-finance-news-moly-mines-limited-spinifex-ridge-i...

TORONTO, ONTARIO--(CCNMatthews - Aug. 1, 2007) - Moly Mines Limited (TSX: MOL.TO)(ASX: MOL.AX) today announced a five million tonnes per annum increase to the design capacity of its proposed molybdenum mine at Spinifex Ridge in Western Australia's Pilbara region. The processing plant design capacity has been increased from 15 to 20 million tonnes per annum.

"The large size of the Spinifex Ridge molybdenum/copper resource can easily accommodate a large expansion in the mining rate," Managing Director Derek Fisher said.

"Worley Parsons together with the Company's engineers are undertaking a scoping study to consider a 50 per cent expansion. This was outside the Final Feasibility Study, and resulted in a series of engineering and process design optimisations which are now being incorporated into the feasibility study. These can be achieved with a moderate increase in capital,"

"These design improvements allow an increase to initial plant throughput with absolutely no impact on the project's delivery time, which remains on track for mid-2009."

The engineering of these changes, to feasibility study confidence level, will result in a delay to the completion of the final feasibility study.

"The key findings of the study are now planned to be released in September," Dr Fisher said.

"This slight delay will not impact on our start up-date because we have already ordered long lead items."

Dr Fisher said the initial analysis indicates that the increased output, combined with the reduced unit costs and large increase in sales would significantly increase the mine's earnings.

"The technical team's ongoing examination of the practical mining and processing capacity of Spinifex Ridge plant design uncovered additional capacity which will result in a 20 million tpa mine from start-up," Dr Fisher said.

The feasibility study team is now modelling the implications of this expansion for all aspects of the processing plant and associated infrastructure. Pit optimisation, mine design and ore scheduling to accommodate the expansion have been completed along with amendments to the Public Environmental Review document.

The team is also consulting equipment manufacturers to confirm design specifications for the increased throughput.

Contacts

Dr. Derek Fisher
Moly Mines Limited
+ 61 8 9429 3300
Email: [e-mail]