General Moly Announces Liberty Project Preliminary Economic Assessment Elevated to Pre-Feasibility Level Study
LAKEWOOD, Colo.--(BUSINESS WIRE)--Jul. 7, 2014-- General Moly, Inc. (the "Company" or "General Moly") (NYSE MKT and TSX: GMO), a U.S.-based molybdenum mineral development, exploration, and mining company, announced the elevation of the Company's wholly-owned molybdenum-copper Liberty Project from a Preliminary Economic Assessment ("PEA") announced April 8, 2014 to a National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administration ("NI 43-101") compliant Pre-Feasibility Study ("PFS"). The timeframe for completing the PFS remains unchanged from the PEA estimate, with expected conclusion by the end of July 2014. The Liberty Project is located 20 miles north of Tonopah, Nevada.
Bruce D. Hansen, Chief Executive Officer of General Moly, said, "Based on the quality of the underlying data and the level of technical and economic assessment already completed at the Liberty Project, we in combination with our consultants, decided that the study qualifies as a PFS under Canadian NI 43-101 standards. Assuming positive results, this will allow us to more rapidly advance the Liberty Project through full feasibility and permitting."
Mr. Hansen continued, "Our prior concept of focusing on copper production in the early years of development has transitioned to a mine plan driven by maximizing upfront value based on reasonable long term copper and molybdenum prices. Optimization of the mine plan includes incorporating a portion of the shallow sulfide chalcocite copper mineralization later in the mine sequence, as its net realizable value per ton is less than some of the existing resources containing high grade molybdenum with copper by-product mineralization."
Mr. Hansen concluded, "The updated Liberty PFS maintains the PEA's scoped process rate of approximately 25,000 short tons per day throughput rate and will leverage significant pre-existing infrastructure to reduce initial capital costs compared with a typical green-field development. We anticipate that results from the PFS will demonstrate the inherent value of the Liberty Project to shareholders and potential strategic investors. Even as we complete the PFS on the Liberty Project, we are continuing to aggressively pursue the full financing alternatives for our 80% owned Mt. Hope Project, and the recent rise in the molybdenum price to around $13 per pound has increased interest among potential partners who could support a debt package to provide the bulk of the Mt. Hope development requirements."
Anaconda developed and operated at the Liberty site between 1982 and 1985 before selling it to Cyprus Minerals who operated from 1988 to 1991. Equatorial Minerals operated a copper leach project on the Liberty site from 1999 to 2001. General Moly acquired the site in 2006.
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General Moly is a U.S.-based molybdenum mineral development, exploration and mining company listed on the NYSE MKT (formerly the NYSE AMEX) and the Toronto Stock Exchange under the symbol GMO. Our primary asset, our interest in the Mt. Hope Project located in central Nevada, is considered one of the world's largest and highest grade molybdenum deposits. Combined with our second project, the Liberty Project, a molybdenum and copper property also located in central Nevada, our goal is to become the largest pure play primary molybdenum producer in the world. For more information on the Company, please visit our website at http://www.generalmoly.com.
Statements herein that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and are intended to be covered by the safe harbor created by such sections. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected, or implied by the Company. These risks and uncertainties include, but are not limited to, metals price and production volatility, global economic conditions, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, exploration risks and results, political, operational and project development risks, including the Company's ability to maintain required permits to continue construction, commence production and its ability to raise required project financing, adverse governmental regulation and judicial outcomes, including appeal of the Record of Decision and appeal of water permits and estimates related to cost of production, capital, operating and exploration expenditures. For a detailed discussion of risks and other factors that may impact these forward looking statements, please refer to the Risk Factors and other discussion contained in the Company's quarterly and annual periodic reports on Forms 10-Q and 10-K, on file with the SEC. The Company undertakes no obligation to update forward-looking statements.