Spinifex Ridge is located approximately 140 km southeast of the town of Port Hedland in the East Pilbara region of Western Australia and has an expected mine life of over 20 years with a measured and indicated resource of 469 million mt containing an average grade of 0.06% molybdenum and 0.09% copper.

Moly Mines Managing Director Derek Fisher said the contract was the largest single contract to be awarded for the project and represented another major milestone towards the development of Spinifex Ridge.

Macmahon is an ASX listed mining and civil construction company with a market capitalization of over A$700 million. It operates and has particular mining experience in the Pilbara district, as well as in New Zealand and Malaysia, employing more than 3,000 people and with current annual turnover of approximately A$1.2 billion.

During the term of the contract the pit will be developed to a size of 1.2 km x 1.1 km and to a depth of over 400 m. Mining development is expected to commence in mid 2008, with 32 million mt of waste pre-stripping completed prior to the commissioning of the processing facilities. Macmahon will mine more than 180 million m3 of material and employ a permanent site workforce of approximately 270 workers.

This is the latest in a series of project contracts awarded since the completion of the definitive feasibility study in September 2007. Capital cost construction contracts awarded to date total A$146 million and relate to critical path items. Long lead equipment such as the primary crusher, High Pressure Grinding Rolls and ball mills have been ordered and the company says it has confirmed delivery dates for them. The accommodation camp contract was awarded in January 2007.

With an expected mine life of 20+ years and a mining operation expected to deliver 20 million mt/y of ore to the processing plant, Spinifex Ridge will be one of the largest metals mining operations in Australia, contributing an estimated 5% of the current world supply of molybdenum.

In December 2007, the company announced that it had received an A$88-million capital injection from stock placement that would bridge the project until the main financing is finalized. It also confirmed the establishment of a strategic alliance with Molymet of Chile, signed in December, which included a roasting agreement that covers treatment of Spinifex Ridge molybdenum concentrates for a period of at least five years, with options for extensions. This, according to the company, guarantees processing capacity for the mine’s molybdenum concentrates in an industry likely to experience further capacity constraints without substantial additional new roasting investment by 2011.