tip of the iceberg

As we approach the 24th March 2010 that is "D" day for Hanlong - that's D big DOLLAR day payout of US$141 million dollars to "Takeover" Moly mines lets recall the historical events leading up to either Tuesday or Wednesdays announcement.

MOLY acquired perhaps a TRIPLE crown jewel tenement (Iron Ore, Molybdenum and Copper) in the IRON ORE rich regions of Pilbara WA. Thats approximately near where all that IRON ORE action is today. You know BHP, RioTinto, Fortesque, and another dozen os so companies all doing thier thing - exploring and exporting.

BUT there real difference is that Moly MINES also has Molybdenum and Copper in this unique tenement.
I dont think some of these other companies have too much of these if any but maybe some may be discover progressively in the future.

Its mainly IRON ORE country.(Except that Moly has Mo,Cu also)
Anyways perhaps the most recent announcement that probably sealed the interest in Hanlong would have been the following from that great site

PROACTIVEINVESTOR.com.au 20th May 2009
"Moly Mines Ltd (ASX:MOL) has delivered some significant and timely cheer to shareholders with results received from the March 2009 infill drilling programe at Spinifex Ridge Iron Ore Project.

Without putting too many superlatives to it, the following results show why Spinifex Ridge iron ore could prove to be a handy source of cash flow for Moly shareholders.

Significant results included:
- 40m @ 62% Fe from 37m
- 62m @ 63% Fe from 3m; including 14m @ 67% Fe from 24m
- 40m @ 64% Fe from 2m
- 46m @ 63% Fe from 41m; including 11m @ 66% Fe from 58m
- 41m @ 62% Fe from 37m
- 43m @ 62% Fe from 3m; including 13m @ 65% Fe from 21m

The company called the results, "outstanding" and it is not difficult to see why with these high grade intersections. With grades above 60%, the ore can generally be mined at lower cost and used in blast furnaces requiring only simple preparation.

Moly Mines is now fast-tracking studies for how best to mine and extract the material as Direct Shipping Ore. Inital internal targets are for a one million tonne per annum production operation, although this could be slightly increased over time. Even at current iron ore prices, this would prove a timely cash generator for the company, while it contemplates the bigger prize at the Spinifex Ridge Molybdenum Project, and evaluating other potential mining acquisitions.

It is understood that negotations are advanced with interested parties to buy the Spinifex Ridge iron ore. It would be logical to assume that Moly Mines could look at selling the ore at the gate, delivering the ore to another producer's stockpile in the Pilbara.
(Anyways NOW its up to Hanlong as to what they will do with it?)
The location of Spinifex Ridges project is a major advantage with it being within easy trucking distance over paved roads from the major iron ore exporting infrastructure at Port Hedland, Western Australia.

The results were derived from a 27 hole RC drill program for 2,209m drilled to an average depth of 82m. The drilling was spread across 3 of the 4 prospects - Auton, Auton North East and Gallifrey, all of which occur on the Spinifex Ridge mining leases.

The majority of the drilling was targeted into the Auton North East prospect to expand and close off the mineralisation, with some further infill completed into the Auton and Gallifrey prospects. This program completes the majority of the RC drilling required to finalise a maiden Iron Resource estimate on these small but rich iron occurrences."

These drilling results actually appeared at the peak of the GFC when theniron ore prices crashed to about US$35 tonne. I think they are upwards of US$80 tonne today.
Further exploratory drillings of the iron ore tenements could provide some further surprises down the track but for now its all GO for export.

(Moly Mines has previously 2007,2008? drilled up to 100 holes to identify the magnitude of the Molybdenum deposits - these NOW appear at 1 million tonnes of Molybdenum Ore export per year - estimated feasability for at least 25 years exporting also - again fantastic, brilliant data)

We would think that once Hanlong get their opportunity to take over they would move fast to start production of iron ore export. The only constrain for now being the availabilty of the NEW Port Headland- Utah Point shipping dock.

The NEW Port UTAH facilty access is the last remaining major logistical barrier for the development of the iron ore project - this hopefully will be completed by October 2010 if not earlier.

Some of the ANTICIPATED FINANCIALS for the IRON ORE discovered are as follows (at 2009) ....

"The indicated mineral resource of 6.11 million tonnes at 58.9% Fe, with an additional 1.2 million tonnes of inferred resource at 57.2% Fe.

Total operating costs for a 1 m/t per annum project were estimated at A$45.7 m/t (FOB Port Headland), based on a 5 year Direct Shipping Ore (DSO) operation. A company owned, conventional semimobile crushing and screening plant will produce two products, Lumps (> 6 mm, <31.5 mm) and Fines (<6 mm).

Capital costs were estimated at $10 million using an open pit mine. Contract road haulers, using road trains, will transport the final product to Port Hedland to be shipped to customers.

With first ore production timed for Q2 2010, and shipment in Q3 2010, this would fit handily with the Utah Point port facility, itself due for completion during 2nd quarter 2010.

With estimated carry forward tax losses of A$90 million, revenues from iron ore will flow through to the bottom line. Net pre-tax project cashflow is estimated at A$67.7 million."

The Molybdenum processing and export would begin about June 2011 if not earlier??

Good Luck coming hopefully by this Wednesday 24th March to holders.