The company’s Spinifex Ridge tenements have two separate orebodies, located about 500m apart.
The Spinifex Ridge Iron Ore deposit contained a resource of approximately 2.5Mt of direct ship iron ore. Moly Mines commenced mining this deposit in late 2010 after receiving all approvals and making a final investment decision.
Approximately 2.5Mt of ore was mined and shipped by Moly up until mid 2013,when Moly Mines signed a Mine Gate Sale whereby Mineral Resources Limited paid Moly Mines for the remaining ore and operated the mine for the remainder of the mine life.
The Spinifex Ridge Molybdenum-copper deposit was subject to an extensive development program which resulted in completion of full permitting and publication of Definitive Feasibility Study in 2008. This timing unfortunately coincided with the Global Financial Crisis and the molybdenum commodity price dropped significantly from over $30/lb to less than $10/lb.
The project remains on care and maintenance pending more favourable economic conditions.