- 3D Induced Polarization Results Reinforces 2D Analysis
Previously Produced, Geologic Review Underway
LAKEWOOD, Colo., April 5, 2018 /PRNewswire/ -- General Moly,
Inc. (the "Company" or "General Moly") (NYSE American and TSX:
GMO), the only western-exchange listed, pure-play molybdenum
development company, recently received a Titan Direct Current and
Induced Polarization "DCIP" survey report to assist in the
evaluation of potential high-grade, copper-silver exploration
target zone ("Cu-Ag Target") immediately adjacent to the Mt. Hope
molybdenum deposit in central Nevada.
The high-intensity, ground-based, IP survey, including 2D and 3D
inversions of acquired DCIP field data, was completed in
February 2018 by Quantec Geoscience.
An apparent contiguous group of high chargeability anomalies appear
to align with the recently identified Cu-Ag Target the Company
previously reported in its March 1,
2018 news release.
The final IP survey report includes 2D and 3D IP inversions that
identify resistivity and chargeability anomalies with enhanced
accuracy within several hundred feet of the surface. Interpretive
evaluation of the 3D IP sections with available historic drill
results should improve follow-up drill targeting.
General Moly has engaged the firm Mine Mappers, LLC, with
Mark Osterberg, Ph.D., P.G., as
Principal Consulting Geologist, to support the Company's internal
staff in the evaluation of the geophysical and historic drilling
results. The planned work will refine the geologic and lithological
interpretation of the anomalous target areas and integrate the
historic drill results, including geochemical assay results, with
the Titan DCIP survey findings. Dr. Osterberg and his colleagues at
Mine Mappers have mapped surface geology and logged diamond drill
core at the Mt. Hope project in several previous campaigns.
General Moly anticipates this planned work will define untested
drill targets, which will be evaluated subject to financing. The
Company expects to have an initial exploration plan completed
within the next few months.
The Figure 1: Plan Map below shows the Company's interpretation
of a halo of 2% zinc from historic drill intercepts. The zinc
mineralized area of interest measures approximately 17 acres in
size and covers past historic underground mining of zinc as the
primary produced metal.
The IP survey, which focused on the Cu-Ag Target, comprised six
2,400-foot long lines with two lines running SW to NE (lines 1 and
6), and 4 lines (lines 4, 3, 2 and 5) running SE to NW and
perpendicular to lines 1 and 6. (Please refer to Figure 1: Plan
Map.)
Compared to the previously completed 2D IP results, the new 3D
images show an expanded high chargeability zone, indicated by
orange and red colors, underlying a layer of resistive rock, seen
in blue and green colors. The cross sections also show
historical drill intercepts within approximately 100 feet of the
vertical cross sections, with the colored boxes along the drill
lines designating assays of copper equal to or greater than 0.5%
with red, zinc equal to or greater than 1.0% with light blue, and
silver equal to or greater than 20 opt with gray. Please
refer to cross section of Line 3, as Figure 2, and Line 2 shown as
Figure 3.
Most of the drill data referenced in the figures and located in
the zinc mineralized area southeast of the Mt. Hope molybdenum
deposit, comes from historic drill campaigns and their reported
results lack modern quality assurance and controls for samples and
assays, which cannot be independently confirmed. Such data may not
be relied upon for any evidence or likelihood of a mineral
resource, mineral reserve or mineral deposit. The Cu-Ag Target and
larger zinc mineralized area do not contain any mineral resource
estimate as defined by the Canada National Instrument 43-101
("NI 43-101") or any proved or probable reserves as defined by
the United States Securities and Exchange Industry Guide 7,
nor is there any certainty that further exploration will result in
any targets becoming part of a mineral resource or mineral
reserve.
The Cu-Ag Target within the zinc mineralized area appears to be
close enough to the surface and to the ultimate Mt. Hope molybdenum
pit to be potentially accessed by a decline from either the surface
or the pit, if development is warranted.
The Company's intent is to substantiate the occurrence of copper
and silver mineralization lying below previously mined bodies of
zinc ore. The target is open to the northeast and at depth. The
approximate intersection of DCIP survey lines 1 and 3 is a
particularly attractive and high priority target. (Please refer to
the Appendix Plan Map.) The Company's goal is to define sufficient
tonnage and grade to justify the formal scoping study of a
standalone mining operation or a mining operation associated with
the planned Mt. Hope molybdenum mine.
The Company, which holds an 80% interest in the Mt. Hope
Project, has presented the promising findings described herein to
POS-Minerals, its 20% joint venture partner, and is discussing
value-sharing investment options with POS-Minerals. Any mining
operation to exploit economic mineralization will require the
approval of POS-Minerals.
About General Moly
General Moly is a U.S.-based, molybdenum mineral exploration and
development company listed on the NYSE American (NYSE AMER),
recently known as the NYSE MKT and former American Stock Exchange,
and the Toronto Stock Exchange under the symbol GMO. The Company's
primary asset, an 80% 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 the Company's wholly-owned Liberty Project, a
molybdenum and copper property also located in central Nevada, General Moly's goal is to become the
largest primary molybdenum producer in the world.
Molybdenum is a metallic element used primarily as an alloy
agent in steel manufacturing. When added to steel, molybdenum
enhances steel strength, resistance to corrosion and extreme
temperature performance. In the chemical and petrochemical
industries, molybdenum is used in catalysts, especially for cleaner
burning fuels by removing sulfur from liquid fuels, and in
corrosion inhibitors, high performance lubricants and polymers.
Contact:
Scott Roswell
(303) 928-8591
info@generalmoly.com
Website: www.generalmoly.com
Qualified Person's Statement
The scientific and technical information in this news release
was reviewed by Mark W. Osterberg,
Principal Consulting Geologist of Mine Mappers, LLC. Mr.
Osterberg is a "qualified person" as defined by NI 43-101. He
is a Professional Geologist, with a master's and doctorate degrees
in geology. Mr. Osterberg has extensive minerals industry
experience that is relevant to the evaluation of the style and
nature of mineralization described above.
Forward Looking Statement
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 a re-grant of its water permits and Record of Decision,
ability to maintain required federal and state permits to continue
construction, and commence production of molybdenum, copper,
silver, lead or zinc, ability to identify any economic mineral
reserves of copper, silver, lead or zinc; ability of the Company to
obtain approval of its joint venture partner at the Mt. Hope
Project in order to mine for copper, silver, lead or zinc, ability
to raise required project financing or funding to pursue an
exploration program related to potential copper, silver lead or
zinc deposits at Mt. Hope, ability to respond to adverse
governmental regulation and judicial outcomes, and ability to
maintain and /or adjust estimates related to cost of production,
capital, operating and exploration expenditures. 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.
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SOURCE General Moly, Inc.