General Moly to Restart Liberty Project Evaluation and Development
General Moly (NYSE AMEX: GMO) (TSX: GMO) announced that the Company will
allocate $2.5 million in its 2011 budget to advance the Company's
Liberty project, located in central Nevada.
Bruce D. Hansen, Chief Executive Officer, said, 'In early 2009, with the
collapse of the global markets, we suspended evaluation activities at
the Liberty project. However, given our positive outlook for both the
moly and copper markets, and the Liberty project's potential economics,
we will begin advancing our second world-class project toward
production. We also have non-Mt. Hope-related funding from the early
exercise of warrants which have already provided approximately $18.5
million in proceeds and are anticipated to provide approximately $4
million in further proceeds by mid-February.'
A pre-feasibility study released in April of 2008 indicated annual moly
production of 19 million pounds and annual copper production of 18
million pounds per year, at moly cash costs of $6.15 per pound (net of
copper credits) for the first five years of operations. That cost figure
was based on a copper price assumption of $1.50 per pound. Based on
today's copper prices of over $4 per pound, the Liberty project's cash
cost could be closer to $4 per pound of salable molybdenum with copper
credits over the first five years of operations.
Over the year, the Company's evaluation program at Liberty will focus on
collecting baseline data for the Nevada State-issued permits,
hydro-geological groundwater characterization of the open pit, infill
drilling, and logging and assaying prior drill core to improve and
update the existing geologic model. The Company anticipates an update to
the pre-feasibility study by the end of the year, including an
evaluation of full feasibility study options.
The Liberty project is substantially located on private land and is
anticipated to require Nevada state-issued permits only, simplifying
permitting requirements relative to permitting on Federal land.
Permitting requirements for the Liberty project include an Air Quality
permit, a Water Pollution Control permit, a Dam Safety permit (relating
to the tailings facility), and a Reclamation Permit.
Following the pre-feasibility update and full feasibility analysis that
is anticipated to be completed by the end of 2011, the Company will move
forward with a full bankable feasibility study and permit applications.
Construction at Liberty could be started in 2014 with production able to
commence by the end of 2015 or early 2016.
The 2008 pre-feasibility study indicated a capital cost requirement of
approximately $500 million (2008 dollars). Funding for the Liberty
project is anticipated to be largely financed out of free cash flow from
the Mt. Hope project; however, the Company will consider off-take and
strategic partner financing for the project.
General Moly is a U.S.-based molybdenum mineral development, exploration
and mining company listed on the NYSE Amex (formerly the American Stock
Exchange) 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 molybdenum property, the
Liberty project that is also located in central Nevada, our goal is to
become the largest primary molybdenum producer by the middle of the
decade. For more information on the Company, please visit our website at http://www.generalmoly.com.
Forward-Looking Statements
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 obtain required permits to commence production
and its ability to raise required financing, adverse governmental
regulation and judicial outcomes. Subsequent closings under the Stock
Purchase Agreement with Hanlong and obtaining bank financing are subject
to a number of conditions precedent that may not be fulfilled. 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.
General Moly
Investors:
Seth Foreman, 303-928-8591
sforeman@generalmoly.com
or
Business
Development:
Greg McClain, 303-928-8601
gmcclain@generalmoly.com
http://www.generalmoly.com
info@generalmoly.com