According to the latest estimate, Molyhil contains 3.5 mln tonnes at 0.29% WO3 and 0.12% molybdenum in probable reserves.
What’s more, a new and potentially profitable additional underground mining option has been identified, in addition to the original plan for open pit mining.
The company is now updating capital and operating cost estimates with the objective of identifying further cost reductions and boosting the economic potential of the project.
"The successful completion of the ore reserve study is a very welcome development for the Molyhil project and the company,” said executive chairman Mick Billing.
“Extending the life of the project, along with evidence that additional blocks have the potential for subsequent underground mining, is a major step forward in the commercialisation potential of Molyhil. Discussions with third parties expressing interest in the Molyhil opportunity confirmed that an extension of mine life was a key precursor to more proactive engagement and with the findings announced today we have moved solidly down that pathway.”