Sydney, Nov 25, 2005 AEST (ABN Newswire) - Moly Mines Limited (ASX: MOL) is pleased to announce its first resource for the rapidly evolving Dargues Reef gold project at Majors Creek in southeast New South Wales.
The JORC compliant Inferred resource is: 3,720,000 tonnes @ 3.0 g/t Au for 360,000 oz This is an outstanding outcome as it represents a 750% increase in the contained ounces over the estimation presented in the Company's IPO prospectus in early 2004 and it has been achieved at a low discovery cost of $3.75 per ounce gold.
The drilling to date has been broad spaced and infill drilling will be required to upgrade the resource classification to a higher JORC classification. Drilling is on-going and continues to pursue the limits of the mineralisation The deposit consists of two main coalescing near vertical gold lodes within a larger mineralised structurally-controlled lode-system in the roof-zone of the Braidwood Grandiorite.
The two lodes thicken where they intersect creating a broad steeply east-plunging shoot. Diamond drilling continues to expand this zone both at depth and along strike, with lodes being open in these directions. The geometry of the deposit with its near vertical attitude, lends itself to underground mining for the extraction of the gold, and the Company is planning a scoping study to commence in early 2006 to examine underground mining.
This independent mineral resource estimation was undertaken by Mr. Clay Gordon of Mining Assets Pty Ltd and was completed using Ordinary Kriging interpolation inside a wireframe defined by grade and geology. Moly Mines has completed 14 diamond drill holes and 19 RC holes, adding to the 27 holes drilled by previous explorers. As a result of the exploration success at Dargues Reef the Company has recently significantly expanded its Majors Creek land holding to cover the majority of the gold prospective Braidwood Granodiorite. The tenements now cover over 700 square kilometres.
Dargues Reef Mineral Resource Summary
Inferred Tonnes Grade Metal T g/t Oz>0g/t 3,720,000 3.0 360,000>2.0g/t 2,380,000 4.1 310,000- Top cut of 27g/t Au applied to assays- Primary block model 10m x 20m x 20m(vert) with sub- blocking to 2.5m x 5m x 5m- Ordinary Kriging used to interpolate grades
Contact
Dr Derek Fisher
Managing Director
Moly Mines Limited
189 Hay St, Subiaco
Western Australia 6008
Telephone: +61 8 9388 5000
Fax: +61 8 9388 5099
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