Moly Mines Limited (TSX:MOL)(ASX:MOL) has announced that it has commenced iron ore production at Spinifex Ridge, 50km northeast of Marble Bar in the Pilbara of Western Australia.
Commissioning of the crushing and screening processing plant has been successfully completed and commercial production is now underway. The plant is operating on one shift per day and ramping-up to the designed through-put rate of 3,000 tonnes per day, equivalent to 1 million tonnes per annum.
Trucking of iron ore product into Port Hedland has also commenced with approximately 5,000 tonnes of material already transported into the Utah Point port facility.
Moly Mines CEO/MD Dr Derek Fisher commented "first commercial mine production is a momentous occasion for any mining company, and this is certainly the case for us. Considering the parlous state of the Company in 2008 during the GFC, the rapid commercialization of our small, but potentially very profitable, iron ore deposit is a great complement to the skill and dedication of our technical team and management. It augurs well for the development of our molybdenum mine."
The Company is targeting a conservative, smaller, first shipment of 50,000 to 60,000 tonnes to test the systems both at Port Hedland and in China. This is expected to occur in December.
Iron ore prices remain strong with 62% Fe CFR China prices trading above US$160/t. Moly Mines will receive a discount to this price as it will be shipping a product averaging approximately 59% Fe.
Moly Mines has commenced studies to increase the project production rates from 1 million tonnes per annum. This is expected to be achieved with limited additional capital expenditure as current mining and crushing operations are day shift only. Exploration activities are also ongoing to expand the existing iron ore resource base.
Source: Moly Mines Limited