Maybe Moly gold spin-off

01 February 2006 | 03:24 Code : 7780 Geoscience events
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Moly Mines' managing director Derek Fisher told MiningNews.net no decision...
MOLY Mines is considering spinning out its gold assets due to a belief they are being overshadowed by its flagship Spinifex Ridge molybdenum project.
Moly Mines' managing director Derek Fisher told MiningNews.net no decision had been made but in the current high gold price environment a spin-out was something the company was considering.
"At the moment we don't believe the gold assets are receiving any recognition in the share price," Fisher said."Because the moly (molybdenum) project is so big and potentially such a major asset – it is already – the gold projects aren't getting full recognition at the moment."The company's major gold asset is the Dargues Reef project in New South Wales, where an inferred resource of 3.72 million tonnes grading 3 grams per tonne gold for 360,000oz was delineated in November last year."We're starting to close it off in one direction – to the east – but it's still massively open at depth and to the west," Fisher said.Fisher said the company was commencing a scoping study on Dargues Reef which should take about three months. He said there was about 12 months of drilling left to close-off the deposit and it was probably about 24 months away from being able to be brought into production.Moly Mines is expected to hand down a pre-feasibility study for its Spinifex Ridge molybdenum project in Western Australia later this month.The project has a resource of 425Mt grading 0.07% molybdenum and 0.09% copper.Preliminary work has estimated a capital cost for the project of $300-400 million producing 12-20,000 pounds of molybdenum per annum or about 5% of world production.Shares in Moly Mines were down 6.5c (3.42%) in midday trade at $1.835

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