Iron Ore Did somebody say MOL has IRON ORE. Isnt it a molybdenum and Copper company only?
NO! thats right MOLY will be shipping lots and lots of iron ore. Heres the snippet from MOLYMINES site page....Fantastic site with maps and photos - must see.
"Spinifex Ridge Fe Four areas of iron ore mineralization have been identified within the mining leases granted and acquired for the Spinifex Ridge Molybdenum Project.
They are known as Auton, Auton North East, Dalek and Gallifrey (Iron Ore Project), and lies 500m to the east of the Spinifex Ridge Molybdenum-Copper Resource.
Over 155 RC and diamond drill holes for 10,000 meters of drilling has been completed over the iron ore prospects with drill spacing varying from 100m x 50m and 20m x 20m patterns, which has defined a maiden JORC compliant resource estimate for Spinifex Ridge Iron Ore at 7.3 million tonnes at 59% Fe.
Resource Classification Tonnes Fe% SiO2% Al2O3% P% S% LOI% Indicated 6,110,000 58.9 8.5 1.7 0.15 0.006 4.7 Inferred 1,160,000 57.2 12.8 0.9 0.15 0.011 4.1 Resource quoted at a > 50% Fe cut off grade. Full drilling data supporting this resource calculation was release to the market on May 19, 2009.
The Resource is derived from 4 deposits Dalek, Gallifrey, Auton NE and Auton. A comprehensive NI43-101 Technical Report is available from the SEDAR website at www.sedar.com.
Initial mine optimization studies have been completed with pit designs showing in-pit resources of over 5.6 million tonnes providing for a minimum 5 year mining operation at an annual production rate of 1 million tonnes.
Mine scheduling has commenced in conjunction with metallurgical test work programs. Six geotechnical (480 metres) drill holes have also been completed to aid in pit design.
The Company is targeting a late Quarter 1 2010 commencement of mining pre-strip operations with production slated for July 2010. The iron ore development schedule is assisted by the permitting approvals that have already been received for the Spinifex Ridge Molybdenum Project. The iron ore deposits are located on the mining leases that host the molybdenum / copper Resource and the site is well supported by excellent infrastructure between the site and export facilities at Port Hedland.
All of the material will require drill and blast, and drill holes will be sampled for grade control. Mining will be carried out on 3m benches providing close control of grade boundaries by selective mining. The ore will be hauled to the crushing and screening plant (location yet to be finalized) and stockpiled adjacent to the primary crusher. The primary jaw crusher will be fed by a Cat 988 front end loader or equivalent, followed by secondary crushing and screening to produce a lump and fines product. Fines product is sized at 0 8mm, and lump at 8 32mm. Iron ore products will then be loaded on site at Spinifex Ridge for road haulage to Port Hedland. It is proposed to use 3 and 4 trailer truck roadtrain combinations hauling up to 115 tonne payload. The first 30km of haulage will be on the Warawagine Road, a well maintained public dirt road that has handled the ore shipments from both Telfer gold/copper mine and Woodie Woodie manganese operations. This road joins the Marble Bar to Port Hedland sealed road, and transported a further 160km to Port Hedlands export facility. Negotiations for access to port capacity have begun.
It is anticipated later this year tendering will commence for the mining, crushing, haulage and associated site services for the mine development. However vendor enquiries to date have provided sufficient information for financial modelling of the project.
Mining and process modelling has demonstrated a low cost capital start-up for the Spinifex Ridge Iron Ore Project of approximately A$20 million which includes contingency and working capital. The project will utilize simple open pit mining, crushing and screening techniques to produce lump and fines product. Pre-royalty operating cost estimates of approximately A$45/t (life of mine average) highlight the strong potential cashflows based on current benchmark and spot pricing and a 1mt/a operation.
Further Exploration
Beyond the JORC Resource, further drilling completed recently was designed to explore the lateral and depth extensions of known iron ore mineralisation within 3 of the 4 Resources (Auton NE, Auton and Gallifrey) with a view to expand the current resource tonnage. A total of 33 drill holes for 2,495m (including two re-entry holes) was completed using a reverse circulation drill rig. Total drilling to date into iron targets is 195 holes for 13,506m. Significant drill intersections include:
9m @ 62.3% Fe 18m @ 59.2% Fe 7m @ 60.2% Fe 16m @ 61.8% Fe 22m @ 60.1% Fe
Drilling at Auton NE identified a zone of near surface mineralisation at the eastern end of the deposit. Deeper drilling below Auton NE confirmed that the mineralisation was plunging to the west as predicted. Drilling at Auton extended the known near surface derived mineralisation to the north and north-west to depths of up to 35m with many near to surface high-grade iron intervals outside of existing resource boundaries. Drilling at Gallifrey identified a significant zone of near surface crustal style mineralisation along strike to the north-east beyond current resource boundaries and will require further drilling to understand the quantum of potential additional drilling.
Four PQ diamond core drill holes totalling approximately 3 tonne of material have been completed into the Gallifrey, Auton and Auton NE resources. This large diameter core is being used for metallurgical testwork, including comminution, drop tower tests, analytical testwork and mineralogy with the program due to be completed by late August.
Reconnaissance geological mapping and prospecting was completed during the Quarter over several kilometres of the iron formation to the east and west of the known mineralisation. It has yielded outcrop rock results up to 62% Fe. Further sampling, mapping and drilling is planned to define the potential of these occurrences.
A number of tenement applications have also been lodged over prospective iron mineralization in areas surrounding Spinifex Ridge."
Does MOLY have iron ore YES,YES and lots of.
And what else does it have YES,YES - molybdenum/copper Heres the Molybdenum Site snippet
"Spinifex Ridge Mo\Cu
Located in the Pilbara region of Western Australia, Spinifex Ridge is fully permitted and ready for immediate development subject to achieving a successful project financing. The Project has been defined at a 20 million tonne per annum mining and processing operation with the potential for major expansion.
The Company is currently reviewing alternative development scenarios for Spinifex Ridge. The initiatives reflect the recent downturn in world molybdenum prices and the ongoing uncertainty in the international financial and credit markets. Scoping study activities have commenced for the development of an 8-10 million tonne per annum mining operation and processing plant.
Spinifex Ridge Molybdenum Project Highlights;
Definitive Feasibility Study completed 20 million tonne per annum project Fully costed and defined from deposit to steel mill Environmental permits in place All mining leases granted Native title agreements in place Long Lead items ordered Key operating agreements in place Process design work complete Copper by-product credits Tolling agreements and strategic alliance in place with Molymet, the worlds largest independent processor of Molybdenum concentrates
Offtake agreements in place over 100% of Mo production 24 million Ib Mo per annum, 27 million Ib Cu per annum Low risk execution and construction, ideal location Iron Ore mineralisation could provide further project operating cost credits Interim financing facility for US$150 million in place staged development scenarios under review: - 8-10 mtpa - 20 mtpa - 33 mtpa
And not forgetting the Port Headland facility for EXPORT is progressing to come into operation about the same time as the ore is ready to be taken out of the ground. Now can anyone out there name another company for me that has so much done and going for it out there."
Hopefully the Chinese New Year will bring WEALTH and Happiness to some of us MOLY holders very, very soon.
"ju nie haw win" = GOOD LUCK
MOL Price at posting:
83.5¢ Sentiment: Buy Disclosure: Held
