A program of outcrop rock sampling by Moly Mines has returned rich hematite iron grades adjacent to the Spinifex Ridge Molybdenum Project in the Pilbara region of Western Australia.

One sample returned a grade of 68% iron with other samples returning 67.3%, 67.1%, 66.5% and 64.8%. The company has started assessment of areas of high grade hematite iron mineralization.

The area of interest starts within 500 metres to the west of the proposed Spinifex Ridge Molybdenum Project open pit mine and extends to the west a further 2.5km.

The areas of enriched iron occur within the banded iron formation of the Gorge Creek Group which also hosts the Yarrie Iron Ore deposits owned by BHP Billiton, less than 40km to the north-east.

The planned mine and associated infrastructure for Spinifex Ridge will significantly enhance the viability of mining the iron mineralization should it prove to be of commercial scale and quality.

Iron mineralization was first reported in the areas covered by the company's mining leases in the 1960s. However it has never been fully assessed due to the location and perceived logistics of moving material from the top of the Talga Ridge.

An iron ore focused drilling program is being prepared but will require separate approvals, which could take a number of months. These programs will be assessed in light of the implications on the ongoing Spinifex Ridge Molybdenum development activities and will initially target the identification of up to 5 million tonnes of iron ore.

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