Moly World Ltd is the owner of an advanced stage molybdenum exploration project in Mongolia, known locally as Mandal Moly, which covers an area of 2,360 hectares approximately 40 kilometres north of Tsagaan-Uul Soum, Khuvsgul Province, in northern Mongolia.
According to an independent conceptual project review prepared by Xstract Mining Consultants for Moly World and Watts, Griffis and McOaut’s independent due diligence review of the Xstract study for Origo, the project has the potential, based on reasonable broad based assumptions to hold between 420 million and 550 million lbs of molybdenum at an average grade of 0.1-0.15 per cent or 0.125-0.175 percent molybdenum equivalent. The project also benefits from high levels of associated tungsten. These reviews estimate that the project could conceivably support a mine with a 10 million tonne per annum ROM production, producing 28.1 million lb of molybdenum concentrate per annum for 17-19 years.
A total of 8 drilling rigs are in the process of being deployed at the project in one of the largest exploration programs currently underway in Mongolia. Further exploration work, including exploration for extensions and infill drilling, will be done in order to produce a JORC compliant mineral resource estimate, targeting a minimum of 300mlb of molybdenum by December 2011.
Origo invested in Moly World in May 2011.