Spinifex Ridge Iron Ore Mining Contract Awarded

Moly Mines has awarded the iron ore mining contract for their Spinifex Ridge Iron Ore Project to BGC Contracting Pty Ltd, at the production rate of 1 million tonne per annum of direct-ship product.   They won the contract following a thorough 8 week competitive tender process against 7 other conforming bids.

BGC plans to mobilise to site mid September 2010, with a mining fleet which includes Komatsu 785 dump trucks and a PC 2000 excavator, and commence ore mining in October. The mining contract is currently planned as a dayshift only operation and has the capacity to significantly increase production.  It is unknown at this stage, how jobs will be generated.

BGC are experienced mining contractors and are currently providing mining services to Cliffs Resources’ Koolyanobbing and Koolan Island iron ore mines and Atlas Irons’ Wodgina iron ore mine, some 100km west of Spinifex Ridge.

Moly Mines initially planned to develop and operate a 20 million tonne per annum open pit mining operation and processing plant.  Subsequent to a dramatic fall in Molybdenum prices in late 2008, the Company announced the results of a smaller 10 million tonne per annum development case with future expansion to the 20 million tonne per annum case.

The Company also has an Iron Ore project expected to be in production as early as 4th quarter 2010 at an annual production rate of 800,000-1 million tonnes per annum from deposits located on the same tenements as the Spinifex Ridge Molybdenum Project.