LAKEWOOD, COLO., November 28 /CNW/ - General Moly (AMEX: GMO) announced an
update on the Company's pre-feasibility study of the Hall-Tonopah project,
located in Nye County, Nevada. Based on completed feasibility work to date,
the Company has developed a mine plan that delivers an estimated 433 million
tons of mineralization to a sulfide flotation process facility at an average
grade of 0.071% molybdenum. The identified mineralization estimate is based
upon historic drill data, the Company's completed Phase I drill program, a
portion of the ongoing Phase II drill program, and the development of a mining
plan utilizing a $10 per pound molybdenum price assumption.
The identified mineralization estimate represents a 20% increase in
contained pounds of molybdenum from the Company's September estimate of 334
million tons at 0.076% molybdenum.
Based on current feasibility work, the Company anticipates potentially
processing mineralized material averaging 0.098% molybdenum over the first
five years of production and 0.090% over the first ten years through a 22,000
ton per day mill. Data from the completed Phase II drilling program and
information from pre-feasibility engineering will be incorporated in a
pre-feasibility report that the Company expects to complete in mid-December.
As of November 28, 2007, five core drill rigs were operating at the
project site for the purpose of completing the Phase II drilling program.
Nineteen of twenty-seven holes have been completed and five are in progress.
The Company's Hall-Tonopah project includes the former Hall molybdenum
deposit that was mined between 1982 and 1985 by the Anaconda Minerals Company
and between 1988 and 1991 by Cyprus Minerals Company. The total area covered
within the project boundary is approximately 14,052 acres and initial planned
mining is anticipated to occur only on fee and patented lands.
Anaconda previously documented 200 million tons of molybdenum ore at
0.098%, of which approximately 50 million tons were mined by Anaconda and
Cyprus at an approximate grade of 0.110% molybdenum. Those previous estimates
and historic mine production provided the basis for General Moly's initial
estimate that 150 million tons remained at an approximate grade of 0.095%
General Moly purchased the Hall-Tonopah property in a two-stage
transaction in 2006 and 2007 for total consideration of approximately $9
million and initiated a two-phase drill program to substantiate previous
mineralization estimates and to explore for additional mineralization. The
drilling programs, highlighted above, have provided the Company with
sufficient data to estimate additional mineralization.
The estimated mineralization increase to 334M tons from 150M tons was
primarily related to a floating cone based on a molybdenum price of $10 per
pound. Additional work on the block model since May 2007 has increased the
estimated mineralization to 433M tons at 0.071% Mo at $10 per pound Mo. This
additional work has focused on incorporation of more comprehensive geologic
factors into the block model, more statistical refinements to the block model
data and continued verification of the historic drill hole data.
Statements herein that are not historical facts, such as estimated
mineralization, anticipated potential processing capacities, and estimated
grade of processed mineralization, are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995, and involve a
number of risks and uncertainties that could cause actual results to differ
materially from those projected, anticipated, expected or implied. These risks
and uncertainties include, but are not limited to, the Company's ability to
raise required financing, metals price and production volatility, exploration
risks and results, political risks, project development risks, including,
without limitation, uncertainties involved in the interpretation of results
and other tests and the estimation of resources. For a more 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-QSB and
10-KSB, as the same are amended from time to time, on file with the SEC. The
Company undertakes no obligation to update forward-looking statements.
For further information:
For further information: General Moly Investors: Seth Foreman,
303-928-8591 firstname.lastname@example.org Business Development: Greg McClain,
303-928-8601 email@example.com http://www.generalmoly.com