General Moly, the Colorado-based mineral developer focused on pure-play molybdenum projects with two primary sites in Nevada, the Mt. Hope (80% owned) and Liberty (100%) projects, reported today via the company's Mt. Hope subsidiary, Eureka Moly, LLC,
that the BLM has accepted reclamation bonding for the Mt. Hope project and cleared the company to proceed with breaking surface at the site.
The reclamation permit, based on a site specific application that validated the company's proposed methodology for taking the site through reclamation and into productive post-mining land use, issued by Nevada's Division of Environmental Protection (Nov 19), also cleared the $73M cost estimate and laid down the financial guarantee structure around this estimate necessary to proceed. Having organized a surety underwriters group through Marsh USA Inc., thus satisfying the financial guarantees required by BLM stipulations in the Record of Decision, GMO is ready to begin construction of facilities on the moly-rich Mt. Hope property, considered to be one of the largest, highest grade moly deposits on earth.
With funding for the surety program coming in well in-line with August 2012 capital estimates for the job at around $17.2M, the initial cash outlay of $5.6M made, and JV partner POS-Minerals Corp. at the ready to also fund the construction phase remainder, GMO will be looking to start early well field development very soon. Heavier facility construction can begin in the spring and until then the company will be mostly doing site prep alongside the light construction, "clearing and grubbing," as COO of GMO, Bob Pennington put it.
With estimated reserves as some 572M tons grading 0.085% moly on a mine life of over 58 years (Exxon, 1988), Mt. Hope is an exceptional domestic source for this crucial substance that is needed widely as an alloy for making high-strength steel, as well as being used in the petroleum industry for cracking sulfur out of fuel (and many, many more uses).
That $17.2M figure covers approximately three years and should take the company well into development at Mt. Hope, giving GMO a strong second pillar to go along with their Liberty project in the Tonopah area (29M tons of ore produced between 1981-1991 grading 0.11%). Molybdenum is one of the inescapably vital fundamental resource commodities for the global economy moving forward and this is a superb opportunity for investors to get in at the ground floor with a domestic company that is bucking to become one of the world's top names in moly production.
For more information on General Moly, visit www.GeneralMoly.com
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