The molybdenum/copper resource at Moly Mines’ Spinifex Ridge Project in Western Australia has more than doubled.

The limits of the mineralization have been significantly expanded by recent step-out drilling while sustained high molybdenum prices and price forecasts have prompted a drop in the cut-off grade from 0.03% to 0.02% molybdenum for the resource.

The total measured and indicated resource is now estimated at 658 million tonnes @ 0.045% molybdenum, 0.08% copper and 1.27 grams/tonne silver. There is an additional large inferred resource of 390 million tonnes @ 0.039% molybdenum, 0.069% copper and 1.22 grams/tonne silver.

The more than 100% increase in resource tonnage results in a 25% decrease in molybdenum grade as the additional tonnage has been added in the lower grade halo around the periphery of the deposit.

The estimate was prepared by independent resource and engineering group SRK Consulting and classified in accordance with the JORC Code and CIM Definition Standards on Mineral Resources and Mineral Reserves.

Moly Mines chief executive officer and managing director Dr Derek Fisher says: “We are very excited with the continuing drilling success at Spinifex Ridge and the scale of the resource is now pointing to a possible significantly lengthened mine-life and a possible expansion to the mining and processing capacity.

“We have always recognized that the Spinifex Ridge ore-body was enveloped in a large, lower grade zone but there was insufficient drilling in this area to determine a grade and tonnage for this material. This recent drilling begins to fill that information void.”

The company is running revised detailed mine plans based on the larger resource which is expected to result in a substantial increase in reserves and generate a mine plan and financial models that extend beyond 20 years.

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