Moly Mines has announced a major expansion of its Spinifex Ridge molybdenum/copper resource with an increase of more than 100 per cent in its resource tonnage results.
Moly Mines has announced a major expansion of its Spinifex Ridge molybdenum/copper resource with an increase of more than 100 per cent in its resource tonnage results.
The limits of the mineralisation 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% Mo for the resource.
The announcement is pasted below:
Moly Mines Ltd is pleased to announce a major expansion of the Spinifex Ridge molybdenum/copper resource.
The limits of the mineralisation 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% Mo for the resource.
The total Measured and Indicated Resource as estimated 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 is now estimated at:
658 million tonnes @ 0.045% Mo, 0.080% Cu, 1.27g/t Ag
There is an additional large Inferred Resource of;
390 million tonnes @ 0.039% Mo, 0.069% Cu, 1.22g/t Ag
The more than 100% increase in resource tonnage results in a 25% decrease in Mo grade as the additional tonnage has been added in the lower grade halo around the periphery of the deposit.
Commenting on the new resource estimate Moly Mines Chief Executive Office and Managing Director Dr Derek Fisher said the scale of the resource pointed to the possibility of a significantly lengthened mine-life and a possible expansion to the mining and processing capacity.
"We have always recognized that the Spinifex Ridge orebody 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, " said Mr Fisher.
Based on past experience with the ore-body, it is expected that the majority of the Inferred Resource will upgrade to the Indicated or Measured categories with more detailed in-fill drilling.
The Company is currently 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
