Anything below current VWAP of 1.3 look a fair very short term...

Anything below current VWAP of 1.3 look a fair very short term trade.

HIGH IRON ORE GRADES MAY COME INTO THE MOLYBDENUM EQUATION

Sydney - Thursday - May 21: (RWE Aust Business News)
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OVERVIEW
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Moly Mines Ltd (ASX:MOL) now looks to have two projects in the
pipeline after yesterday's announcement of Fe iron ore drill results in
the direct shipping ore (DSO) category, at the same time completing its
advanced engineering study on the Spinifex Ridge molybdenum project which
is now expected to be a much smaller start-up project.
The company's substantial debt and difficulty to raise sufficient
funds as originally envisaged might yet be offset by speeding up a DSO
program in the light of such high iron ore grades.
Moly Mines reported 'outstanding' iron drill results from the
March infill drill programs at Spinifex Ridge, which included:
* 40m at 62pc iron from 37m;
* 62m at 63pc iron from 3m including 14m at 67pc from 24m;
* 40m at 64pc iron from 2m;
* 46m at 63pc iron from 41m including 11m at 66pc from 58m;
* 41m at 62pc iron from 37m; and
* 43m at 62pc iron from 3m including 13m at 65pc from 21m.
These results were derived from a 27-hole RC drill program for
2,209 metres drilled to an average depth of 82 metres.
The drilling was spread across three of the four 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.
Moly Mines also announced the appointment of David Craig as
non-executive chairman.
Mr Craig is an experienced businessman and lawyer who has held
and holds executive and board positions in the fields of law, financial
services and the resources industry.
Meanwhile, Moly Mines completed an advanced engineering study on
a smaller startup, Spinifex Ridge molybdenum project.
This demonstrated a significantly reduced capital hurdle whilst
maintaining attractive financial fundamentals.
The highlights of the study include:
* 10 million tonnes/annum (expansion potential to 11.3mt/a);
* 24 year mine life;
* 0.07pc Mo head grade for first 10 years;
* $528 million capital cost;
* $US7.80/lb Mo operating cost; and
* $461 million NPV ($17.50/lb long-term Mo price)
The development of a smaller case Spinifex Ridge start-up project
arose from the significant deterioration in the global capital markets
and from the accompanying rapid decline in the molybdenum metal price
during the last five months as the world's steel production slumped.
The study has demonstrated a technically viable development
opportunity that benefits from the detailed engineering and design work
completed for the larger 20mt/a definitive feasibility study with an
operating cost structure well below the medium- to long-term molybdenum
price.
The 10-year average molybdenum price to March 31 (including the
dramatic slump of October to March) is $US15.00/lb.

SHARE PRICE MOVEMENTS
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Shares of Moly Mines barely moved on the good news - up 0.5c to
42c yesterday. Rolling for the year is $3.99 and low 17c. The company has
93.6 million shares on issue with a market cap of $39.3 million.
On March 11 Moly Mines reported further outstanding iron ore
drill results had been received from the maiden drill program at the
Gallifrey prospect at Spinifex Ridge.
The drill program comprised 30 RC drill holes for 2,011 metres
and was designed to follow up an area of high-grade iron mineralisation
where previous rockchip samples had yielded iron results in excess of 62
per cent Fe.
The drill results had also shown that Gallifrey is low in
contaminants such as silica and alumina and would blend well with
potential resources as Auton and Dalek.
The western portion of the Gallifrey prospect was drilled using a
40x40-metre triangular grid with vertical holes down to a depth of at
least 50 metres.
The results of the systematic rockchipping, mapping and RC
drilling have identified structural corridors that appear to be
controlling the distribution of the high-grade iron intercepts.
Further analysis and interpretation of the various datasets will
assist in defining the orientation of the mineralisation and targeting
future drill holes into this promising target.
These results complement the results received from the Dalek and
Auton prospects that were announced in late February.
At March 31 the company had $98 million cash on hand with limited
net cash spend anticipated during the period to October 31.

BACKGROUND
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Moly Mines Ltd joined the Australian Stock Exchange list on
March 11, 2004.
It was incorporated in January 2003 as Hibernia Gold Pty Ltd.
By December 2003 the company had successfully raised over $1
million in seed capital as a private company.
Moly Mines is also listed on the Toronto Stock Exchange and has
been focusing on the development of base metals projects including the
world class Spinifex Ridge molybdenum project.
Spinifex Ridge is the world's leading undeveloped primary
molybdenum deposit and is ready for financing.
All material development approvals have been received and
construction of many of the major long-lead items is nearing completion.
Since listing on the ASX, the company has successfully conducted
a number of financings that have contributed to the development of the
Spinifex Ridge molybdenum project.
They are highlighted by:
* $18.9 million via a private placement at $1.40 per share;
* $C17.3 million via the TSX IPO at $C1.05 per share;
* Sale of the company's gold properties to Cortona Resources Ltd
for $5 million cash, 12 million ordinary shares, eight million 35c
options and a further $4 million and $8 million 50c options upon the
dedication of a one million ounce resource;
* $C22.5 million via bought deal financing at $3 per share in
March 2007;
* $88 million via a private placement at $4 per share; and
* $US150 million interim debt financing.
A definitive feasibility study for the Spinifex Ridge molybdenum
project was completed in September 2007.
Last October Moly Mines completed a bridge financing facility of
$US150 million for the Spinifex Ridge molybdenum project in the first
step toward full project funding.