The estimated value of the reimbursable contract is A$100 million and is based on the project proceeding as currently planned, including the company finalizing its project financing arrangements. According to Moly Mines, the contract for the construction of the project concentrator formalizes the delivery structure and contracting approach for the project. The contract includes an incentive- based compensation scheme that will reward WorleyParsons for meeting key project milestones through to the project’s scheduled practical completion stage. The milestones are based on performance in key areas including safety, scheduling, commitments, budget and cost. Worley- Parsons’ association with the project extends back to the initial pre-feasibility study work that commenced in 2005.

The project’s Definitive Feasibility Study, released in September 2007, envisages the deposit will be mined by conventional large-scale open-pit mining methods. An initial 10-year mine life would allow exploitation of approximately 42% of the known resource, with the remainder being available for further development. The initial pit, by the end of the 10-year period, would be approximately 400-m deep with surface dimensions of 1,100 x 1,250 m.

The proposed processing plant will employ two-stage crushing of ROM ore, followed by a High Pressure Grinding Roll and primary ball milling circuit. Molybdenum and copper will be recovered by flotation into a bulk concentrate. Molybdenum will be separated by copper depression and further flotation. The molybdenum and copper streams will then be treated by separate regrinding and cleaning processes to produce final saleable molybdenum and copper concentrates.