Water Appropriation Rights For Mt. Hope

LAKEWOOD, CO - General Moly reported that the Company, through a subsidiary, received approval of its water applications. The Nevada State Engineer released Ruling 5966, which granted the previously filed applications for an annual consumptive duty, or volume of 11,300 acre feet annually (afa). The vast majority of the water has as its source the Kobeh Valley ground water basin. This ground water will be utilized, and placed to a beneficial use on the Mt. Hope project.
As previously announced, the Company purchased sufficient quantities of existing irrigation and mining water rights in Kobeh Valley, adjacent to the Mt. Hope project. In the first half of 2008, the Company submitted applications to the Nevada Division of Water Resources requesting transfer of the water rights to Eureka Moly's proposed well field as well as to change the designated use of these water rights from agricultural to mining and milling. Following a State Engineer's hearing on these applications in October of last year, the granting of these applications was received on March 26, 2009.
During 2008, the Company explored for and tested specific water well locations in the proposed well field. This effort identified several highly productive wells and verified that the Company will be able to obtain the 7,000 gallons per minute (gpm) necessary to meet the Mt. Hope project's life of mine production needs. The well field is conveniently located seven miles west of the planned open pit mining operation.
In addition, the Nevada State Engineer determined in his findings that Kobeh Valley pumping will have no adverse impact to the predominately agricultural users in Diamond Valley, the adjacent water basin 15 miles east of our well field site. The grants are subject to a monitoring, management, and mitigation plan by the Nevada State Engineer for the place of use, which is limited to the Plan of Operations submitted to and accepted by the BLM (Mt. Hope project area).
The company’s address is 1726 Cole Blvd., Suite 115, Lakewood, CO 80401, (303) 928-8599, fax: (303) 928-8598, email: [email protected].