Moly Mines has moved to detailed design and planning for construction of the mine and processing facilities at the Spinifex Ridge moly-copper project in the Pilbara district of Western Australia. This follows completion of the Definitive Feasibility Study (DFS).

The company has implemented a detailed execution plan aimed at having the necessary finance for Spinifex Ridge in place, permitting completed and construction activities underway by the end of March 2008 in order to meet its production start-up target of July 2009.

Moly Mines has also progressed its personnel recruitment programme with the critical appointment of a project construction manager, Terry Scott, who has more than 30 years experience in managing the delivery of major mining, mineral processing, civil engineering, heavy construction and building projects. His most recent project was the Aus$760 million Yabulu Extension at the QNI nickel refinery in Townsville, Queensland, for BHP Billiton.

Also joining Moly Mines, as senior metallurgist, is Sam Thong who brings to the company 15 years of extensive experience in crushing, grinding, and flotation circuits and in the application of new technology.

The Spinifex Ridge orebody contains more than 600 million pounds of molybdenum and will be exploited by a conventional truck and shovel open pit mine at an annual rate of 20m tonnes. The processing plant will produce separate moly and copper concentrates.

Using a long-term (post 2015) moly price forecast of less than half the current US$32 per pound, the DFS shows revenues of US$4.94 billionn in the first 10 years of operation, with moly accounting for US$4.4 billion of this total. With capital costs estimated at US$852 million, payback would be achieved in three years.

www.molymines.com