General Moly Initiates PEA On Liberty Starter Pit Project

LAKEWOOD, CO - General Moly, Inc. reported the initiation of a NI 43-101 compliant Preliminary Economic Assessment (PEA) on a starter pit project at the Company’s wholly-owned molybdenum-copper Liberty Project located 20 miles north of Tonopah, Nevada.

The Liberty Starter Pit Project might broaden General Moly's resource base and potentially allows for a low capital cost, rapid payback alternative to prior Liberty Project development plans reflecting current market prices for molybdenum and copper. The Starter Pit Project includes previously excluded higher grade copper resources which can be mined in conjunction with molybdenum ore with copper credits in the main molybdenum deposit. The highest grade copper resources are located in three satellite deposits southeast of the main molybdenum ore body. These satellite deposits, based on historical resource calculations, could contain 50 to 100 million tons of material averaging approximately 0.3% to 0.35% copper contained primarily in chalcocite/digenite, chalcopyrite and covellite mineralization, which is amenable to standard froth flotation.

Bruce D. Hansen, Chief Executive Officer of General Moly, said, "We believe a copper focused Liberty Starter Pit Project has the potential to generate favorable economics given its low strip ratio in shallow pits combined with relatively low initial capital requirements with the significant pre-existing infrastructure and the site’s prior open-pit operations. In addition, our preliminary view is that the Starter Pit Project can begin on our privately owned land, which is expected to allow for a shorter and simpler permitting process with the state of Nevada. Taking into account the current ratio of molybdenum and copper prices today compared with our initial Liberty study in 2008 and updated results in 2011, it makes sense for the initial economics and production schedule to be largely driven by the site’s shallow blanket of secondary sulfide copper mineralization."

Hansen concluded, "We anticipate completing the PEA in the summer of 2014, and believe the results will demonstrate the inherent value and flexibility that the Liberty Project provides to our shareholders, complementing the significant value and optionality of the Mt. Hope Project. Even as we initiate this PEA at Liberty we are continuing to pursue financing alternatives for the Mt. Hope Project, and recent updates to capital and operating costs, mine plans, and project economics are supporting ongoing due diligence efforts. In addition, we are pleased to see an upward trend in underlying molybdenum prices from just over $9 per pound in the summer of 2013 to the current $11.50 per pound. This represents a 14-month high for moly prices and is supported by improved demand and tighter supply. Given the cost structure of the industry along with further growth demand potential, we feel the molybdenum price has the potential to continue to improve in the coming years to a more sustainable long term level."