GENERAL MOLY ANNOUNCES AN 18% INCREASE IN MOLYBDENUM AND A 47% INCREASE IN COPPER CONTAINED AT THE LIBERTY PROJECT
LAKEWOOD, COLORADO – October 3, 2011, General Moly, Inc. (the "Company") (NYSE Amex and TSX: GMO) announced an updated resource estimate for the Company's 100%-owned Liberty project near Tonopah, Nevada based on a revised NI 43-101 compliant pre-feasibility study detailing updated resource estimates and project economics. The report provides an update to a pre-feasibility study that was completed in April 2008. The completed report, which estimates molybdenum and copper reserves and resources, production, capital and operating cost parameters along with project economics, will be filed on SEDAR within 45 days. Highlights of the updated resource estimate include:
· A 18% increase in contained molybdenum within proven and probable reserves to 722 million pounds;
· A 47% increase in contained copper within proven and probable reserves to 894 million pounds;
· A 25% increase in proven and probable tonnage to 541.4 million tons;
· A 6% decrease in proven and probable grades of moly to 0.067%;
· A 14% increase in proven and probable grades of copper to 0.08%; and
· A 20% decrease in stripping ratio to 1.2.
Bruce D. Hansen, Chief Executive Officer, said, "The Liberty project is an extremely robust moly and copper project that gives General Moly a growth profile once we commence production at Mt. Hope. Using moly and copper prices more closely aligned with our peer companies and incorporating data from our most recent drilling campaign helps to illustrate the value of this world-class project. The updated pre-feasibility study will present two mining scenarios: one where mining operations stay completely on private land for the first five years, helping to expedite the permitting process and get Liberty started more quickly; and another, more optimized unconstrained mine plan scenario, which will produce more moly earlier in the mine life, but is anticipated to require a longer permitting period.
"Additionally, we are continuing to engage with parties interested in assisting General Moly in developing the Liberty project, including leveraging existing relationships with current customers and strategic partners, using this updated resource and forthcoming pre-feasibility study as a basis for negotiations."
Following the publication of the NI 43-101 compliant pre-feasibility report, the Company's future development activities will focus on optimizing the project's size and economics, development of a permitting scope and schedule, flow sheet, and recoveries, particularly for the copper resource. Water rights for this project are already secured and an open pit and infrastructure is already in place. Additionally, substantial copper mineralization, potentially containing over 600 million pounds copper, exists primarily to the southeast of the Liberty pit (see inferred material). Further definition of this copper resource is a key area of focus for conversion into resources or reserves over time with additional metallurgical work.
The updated resource is based upon $12.00 per pound moly and $2.50 per pound copper price assumptions and includes data from the Company's 33 drill holes announced earlier this year. Liberty's reserves and resources, as determined in accordance with Canadian National Instrument 43-101, are illustrated in the tables below.
Mineral Reserves, NI 43-101 Definitions
Notes:
1) Cutoff Grade Equivalent Moly Grade of 0.020%. Equivalent Moly = Recovered Moly + Copper x 0.117.
2) Mineral Reserves are based on the total of all Proven and Probable material planned for processing with the mine plan based on $12.00/lb Mo and $2.50/lb Cu.
3) Mineral Resources based on Measured, Indicated and Inferred contained within a floating cone pit at $15.00/lb Mo and $2.50/lb Cu.
4) Table figures may not add due to rounding
5) Mineral resources contain mineral reserves
6) Tons are U.S. short tons
Mineral Resources, NI 43-101 Definitions, Mineral Resources Contain the above Mineral Reserves
ADDITIONAL INFORMATION
John Marek, President of Independent Mining Consultants from Tucson, Arizona, and a Registered Professional Engineer (Arizona and Colorado), is the Qualified Person responsible for resource modeling and mine planning pertaining to the Liberty project and has reviewed the applicable scientific and technical information set out in this news release. M3 Engineering & Technology Corp is the primary author of the NI 43-101 report and has reviewed this news release.
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About General Moly
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.
Contact Information – General Moly:
Investors and Business Development - Seth Foreman (303) 928-8591 sforeman@generalmoly.com
Media – Zach Spencer (775) 748-6059 zspencer@generalmoly.com
Website: http://www.generalmoly.com info@generalmoly.com
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