LAKEWOOD, CO / ACCESSWIRE / October 16, 2018 / General Moly, Inc. (the "Company") (NYSE American and TSX: GMO), the only western exchange listed, pure-play molybdenum mineral development company, reports that its ongoing exploration drilling intercepted significant high-grade, shallow intervals of zinc mineralization and confirmed the presence of a high-grade copper and silver mineral target at depth at the Mt. Hope skarn area, southeast of the molybdenum deposit.
Drill results for the first five assayed holes of an 11-hole program intersected significant intervals of high-grade, sulfide zinc mineralization close to the surface, suggesting the potential for open pit recovery. Completed drill assay results for holes MH-250 through MH-253 are reported in the Appendix 1 table, including these highlights below:
- MH-250 intersected 4.5 feet of 1.48% copper, 3.47 troy ounce per short ton ("opt") silver and 3.22% zinc from a depth of 742 feet
- MH-251 intersected
- 50 feet of 8.72% zinc, starting from a depth of 76 feet, including
- 20 feet of 13% zinc from a depth of 86 feet
- 20 feet of 2.9% copper and 6.57 opt silver from a depth of 571 feet, including
- 10 feet of 4.54% copper and 10.37 opt silver from a depth of 571 feet
- MH-252 intersected
- 112 feet of high-grade zinc mineralization from a depth of 101 feet, including
- 30 feet of 3.93% zinc and 0.7 opt silver from a depth of 101 feet
- 24 feet of 3.05% zinc from a depth of 146 feet
- 5 feet of 8.42% zinc and 0.76 opt silver from a depth of 186 feet
- 53 feet of 7.24% zinc from a depth of 215 feet
- MH-253 intersected
- 45 feet of 4.61% zinc from depth of 76 feet
- 23 feet of 2.53% zinc from a depth of 278 feet
- 19.5 feet of 0.73% copper and 1.92 opt silver from a depth of 526 feet
- 80 feet of 0.58% copper and 2.14% opt silver from a depth of 556 feet, including
- 5 feet of 3.81% copper and 20.12 opt silver from a depth 596 feet
- 6 feet of 2.75% copper and 2.64 opt silver from a depth of 1,158 feet
All holes presented in this news release were angle holes and reported intervals may not represent true width. The completed holes total 5,269 feet drilled. Please refer to the drill hole location map in Appendix 1 and the drill results in Appendix 2.
As previously reported in the Company's September 4, 2018 news release, hole MH-249 encountered consistent zinc mineralized intercepts (+3.5% zinc) from approximately 4 feet from the surface to a depth of 155 feet, including a 74.5‑foot interval with an average of 13.08% zinc beginning at 80.5 feet from surface. Hole MH-249 encountered an unmapped underground working and was terminated at approximately 155 feet from surface. The September release also included initial partial results from MH-250 to approximately 600 feet of hole depth.
Bruce D. Hansen, Chief Executive Officer of General Moly, said, "We are generating great drill results, with every hole drilled so far in this skarn exploration program intersecting high-grade, shallow, sulfide zinc mineralization, indicating substantial thickness and zinc grades ranging from 2.5% to over 13%. We are encouraged by our initial analysis of these 2018 drill assay results combined with the historical drill results (described below) indicating potential for a surface mining operation in the area adjacent to the Mt. Hope molybdenum deposit. This type of satellite mine has the potential to complement the future development of the Mt. Hope molybdenum deposit."
High-Grade Copper and Silver Target
As the Company reported in earlier news releases in 2018, the Company identified a high-grade copper-silver target (Cu-Ag Target) from historical drill results for 7 holes that encountered 13 intervals of greater than 5 feet with copper grades of 1% to 6.3% and silver grades of 3.7 to 15.7 opt.
Holes MH-251 and MH-253 intercepted this Cu-Ag Target, confirming and extending the known high-grade mineralization. Hole MH-251 intersected 10 feet of 4.54% copper and 10.37 opt silver within an interval of 20 feet of 2.9% copper and 6.57 opt silver from a depth of 571 feet.
Assay results from hole MH-253 indicated a broad copper-silver mineralized zone of 80 feet from a hole depth of 556 feet at an average grade of 0.58% copper and 2.14 opt silver. Within this broad zone, hole MH-253 hit 5 feet of 3.81% copper and 20.12 opt silver from a depth of 596 feet.
In addition, just above this broad zone at depth, hole MH-253 also intercepted 19.5 feet of 0.73% copper and 1.93 opt silver from a depth of 526 feet.
Commenting on the copper-silver drill intercepts, Mr. Hansen said, "We are pleased to continue to see expanded and continuous high-grade copper-silver mineralization at depths of 550-plus feet as a high-grade underground target opportunity. Furthermore, the broad zone of mineralization identified in hole MH-253, if extended by further drilling, could point to a potential deeper and larger open-pit concept that extracts both the upper horizon zinc and lower zone of copper and silver."
Dr. Mark Osterberg, Principal Consulting Geologist of Mine Mappers, LLC, who is supporting General Moly in the exploration program, commented, "The drill results reported to date substantiate and confirm the existence of significant, high-grade copper, silver and zinc-bearing skarn replacement deposits within a large, robust, and hydrothermal alteration mineralization complex. The spatial distribution of deeper, peripheral copper-bearing skarns and shallower, distal zinc skarns is commonly found within hydrothermal systems typically associated with porphyry stockwork."
The assay results were prepared by ALS Limited and included certified reference standards, field duplicates, and blanks. All quality assurance controls were of customary accuracy and precision.
Additional Historical Analysis
Following an internal review of historical drill data, the Company has compiled the drill results and associated assays from 26 historical holes with zinc intercepts greater than 2%. Some of the older historical holes would require further review to determine which holes might comply with the Canada National Instrument 43-101 standards and in the future potentially be used for a mineral resource estimate. However, the historical data provide geologic insight to enable future drill targeting. Please see the Historical Drill Results table in Appendix 3.
The most notable significant intercepts include:
- U.S. Bureau of Mines' ("USBM") hole E drilled in the 1940s showed
- 29 feet of 9.41% zinc and 2.97 opt silver at a depth of 202 feet
- 24 feet of 12.03% zinc and 0.37 opt silver at depth of 250 feet
- USBM hole Q also drilled in the 1940s showed
- 121 feet of 4.38% zinc at a depth of 80 feet
- Phillips' hole PMH-10 intercepted
- 65 feet of 3.89% zinc at a depth of 435 feet
- Phillips' hole UPMH-2, drilled from underground, cut
- 31 feet of 17.09% zinc and 0.24 opt silver at an elevation of 6,556 feet (which is approximately 244 feet below the surface)
- Exxon's hole EMH-144 intersected multiple high grade zones including
- 30 feet of 6.42% zinc at a depth of 128 feet
- 20 feet of 4.01% zinc at a depth of 167 feet
- 54 feet of 15.52% zinc at a depth of 217 feet
- 91 feet of 3.70% zinc at a depth of 423 feet.
- General Moly's predecessor company drilled hole IGM-168 that intersected
- 59 feet of 3.67% zinc and 1.41 opt silver at a depth of 317 feet
- General Moly's hole MH-172, which was drilled in 2007 and is approximately 600 feet southeast of the hole MH‑253, intersected
- 55 feet of 4.56% zinc and 7.09 opt silver at a depth of 130 feet
- 20 feet of 0.64% zinc and 10.65 opt silver at a depth of 185 feet
2018 Exploration Program Outlook and Goal
These historical intercepts were the foundation for the 2018 skarn exploration program. The drill results to date are positive in confirming the scope and continuity of the near-surface and high-grade zinc mineralized horizon.
Hole MH-254 was drilled vertically off the same drilling platform as MH-253. Assays are pending.
The next planned hole MH-255 will be focused on the high chargeability target, which could correlate with copper mineralization, to the northeast of the drill collar of hole MH-254, while MH-256 will target the high resistivity target, which could correlate with zinc. Both MH-255 and MH-256 are shown on the Drill Hole Location Map and Induced Polarization cross-section, shown in Appendix 1 and 2.
The Company intends to adjust the location and direction of the remaining drill holes in the ongoing drilling program based on the results. This will advance the project towards the goal of completing a Preliminary Economic Assessment in 2019, if warranted.
General Moly holds an 80% interest in the Mt. Hope molybdenum project and continues to present these promising findings to POS-Minerals Corporation, its 20% joint venture partner. The joint venture partners continue to discuss value-sharing investment options associated with the zinc, copper, and silver exploration. All of the exploration costs to date as well as the above mentioned first phase drilling program continue to be incurred solely by General Moly. 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, 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. Dr. Osterberg is a "qualified person" as defined by NI 43-101. He is a Professional Geologist, with master's and doctorate degrees in geology. Dr. 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.
Appendix 1: Drill Hole Location Map
Appendix 2: Induced Polarization Cross Section Showing Copper Intercepts for MH-251 and MH-253, and Next Holes MH-255 and MH-256 (Looking Northwest)
Appendix 3: 2018 Skarn Exploration Program, MH250-251, Mt. Hope Southeast Area
From | To | Interval | Copper | Lead | Zinc | Silver | |||
Hole | (ft) | (ft) | (ft) | (%) | (%) | (%) | (opt) | ||
MH-250 | 2.0 | 89.5 | 87.5 | 0.14 | 0.01 | 7.05 | 0.45 | ||
MH-250 | 89.5 | 92.0 | 2.5 | 0.17 | 0 | 15.25 | 0.26 | ||
MH-250 | 107.0 | 122.0 | 15.0 | 0.02 | 0 | 8.69 | 0.05 | ||
MH-250 | 140.0 | 210.0 | 70.0 | 0.00 | 0.01 | 1.68 | 0.05 | ||
MH-250 | 220.5 | 317.0 | 96.5 | 0.01 | 0 | 1.16 | 0.03 | ||
MH-250 | 459.0 | 462.0 | 3.0 | 0.59 | 0.01 | 0.08 | 1.55 | ||
MH-250 | 480.5 | 487.0 | 6.5 | 0.99 | 0.01 | 0.13 | 2.80 | ||
MH-250 | 507.0 | 522.0 | 15.0 | 0.62 | 0.01 | 0.08 | 1.65 | ||
MH-250 | 581.8 | 592.0 | 10.2 | 0.65 | 0 | 0.07 | 1.62 | ||
MH-250 | 742.0 | 746.5 | 4.5 | 1.48 | 0.04 | 3.22 | 3.47 | ||
MH-251 | 76.0 | 126.0 | 50.0 | 0.04 | 0.01 | 8.72 | 0.13 | ||
MH-251 | 86.0 | 105.8 | 19.8 | 0.04 | 0.01 | 13.04 | 0.17 | ||
MH-251 | 166.0 | 171.0 | 5.0 | 0.02 | 0.01 | 13.30 | 0.20 | ||
MH-251 | 181.0 | 186.0 | 5.0 | 0.01 | 0.01 | 4.52 | 0.09 | ||
MH-251 | 426.0 | 465.7 | 39.7 | 0.32 | 0 | 0.04 | 0.77 | ||
MH-251 | 426.0 | 451.0 | 25.0 | 0.42 | 0 | 0.05 | 1.02 | ||
MH-251 | 566.0 | 571.0 | 5.0 | 0.53 | 0.01 | 0.07 | 1.43 | ||
MH-251 | 571.0 | 591.0 | 20.0 | 2.90 | 0 | 0.19 | 6.57 | ||
including | |||||||||
MH-251 | 571.0 | 581.0 | 10.0 | 4.54 | 0 | 0.29 | 10.37 | ||
MH-252 | 101.0 | 131.0 | 30.0 | 0.01 | 0.06 | 3.93 | 0.70 | ||
MH-252 | 146.0 | 170.0 | 24.0 | 0.00 | 0.01 | 3.05 | 0.12 | ||
MH-252 | 186.0 | 191.0 | 5.0 | 0.01 | 0.03 | 8.42 | 0.76 | ||
MH-252 | 215.4 | 268.0 | 52.6 | 0.01 | 0 | 7.24 | 0.08 | ||
MH-252 | 287.5 | 316.0 | 28.5 | 0.02 | 0.01 | 1.99 | 0.18 | ||
MH-252 | 353.0 | 361.0 | 8.0 | 0.01 | 0 | 1.25 | 0.03 | ||
MH-252 | 401.0 | 406.0 | 5.0 | 0.04 | 0 | 2.19 | 0.09 | ||
MH-252 | 414.0 | 431.0 | 17.0 | 0.03 | 0.01 | 1.86 | 0.09 | ||
MH-252 | 451.0 | 456.0 | 5.0 | 0.14 | 0.01 | 1.49 | 0.35 | ||
MH-252 | 470.6 | 481.0 | 10.4 | 0.18 | 0 | 1.41 | 0.31 | ||
MH-252 | 485.0 | 491.0 | 6.0 | 0.06 | 0.14 | 1.83 | 0.69 | ||
MH-252 | 561.0 | 576.0 | 15.0 | 0.03 | 0 | 1.59 | 0.18 | ||
MH-252 | 795.0 | 798.0 | 3.0 | 0.27 | 0.01 | 3.80 | 0.70 | ||
From | To | Interval | Copper | Lead | Zinc | Silver | |||
Hole | (ft) | (ft) | (ft) | (%) | (%) | (%) | (opt) | ||
MH-253 | 76.0 | 121.0 | 45.0 | 0.01 | 0 | 4.61 | 0.07 | ||
MH-253 | 278.0 | 301.0 | 23.0 | 0.05 | 0 | 2.53 | 0.12 | ||
MH-253 | 526.0 | 545.5 | 19.5 | 0.73 | 0 | 1.09 | 1.92 | ||
MH-253 | 556.0 | 636.0 | 80.0 | 0.58 | 0.03 | 0.07 | 2.14 | ||
MH-253 | 1001.0 | 1030.0 | 29.0 | 0.34 | 0 | 0.13 | 0.64 | ||
MH-253 | 1109.4 | 1115.0 | 5.6 | 1.41 | 0 | 0.11 | 2.07 | ||
MH-253 | 1154.5 | 1158.0 | 3.5 | 0.25 | 0 | 0.03 | 0.23 | ||
MH-253 | 1158.0 | 1164.0 | 6.0 | 2.75 | 0 | 0.06 | 2.64 | ||
Appendix 4: Historical (Previously Unreported) Drill Results by Various Companies, Mt. Hope Southeast Area
From | To | Interval | Zinc | Silver | Midpoint | |||||
Company | Hole | (ft) | (ft) | (ft) | (%) | (opt) | Elevation | |||
USBM | B | 105 | 116 | 11 | 4.72 | * | 6,834 | |||
USBM | C | 108 | 122 | 14 | 2.43 | * | 6,736 | |||
USBM | C | 196 | 202 | 6 | 5.25 | * | 6,673 | |||
USBM | C | 232 | 235 | 3 | 5.1 | * | 6,647 | |||
USBM | C | 271 | 283 | 12 | 10.75 | 1.31 | 6,615 | |||
USBM | C | 339 | 344 | 5 | 5.65 | 0.68 | 6,567 | |||
USBM | C | 374 | 385 | 11 | 4.2 | 0.15 | 6,539 | |||
USBM | C | 391 | 395 | 4 | 18.4 | 0.25 | 6,529 | |||
USBM | D | 107 | 133 | 26 | 2.61 | 0.46 | 6,706 | |||
USBM | D | 210 | 221 | 11 | 13.94 | 0.55 | 6,630 | |||
USBM | D | 256 | 265 | 9 | 3.39 | 1.53 | 6,595 | |||
USBM | D | 278 | 287 | 9 | 7.58 | * | 6,578 | |||
USBM | E | 92 | 100 | 8 | 3.25 | 0.58 | 6,725 | |||
USBM | E | 181 | 191 | 10 | 5.95 | 0.63 | 6,654 | |||
USBM | E | 202 | 231 | 29 | 9.41 | 2.97 | 6,630 | |||
USBM | E | 250 | 274 | 24 | 12.03 | 0.37 | 6,594 | |||
USBM | F | 95 | 110 | 15 | 4.27 | 0 | 6,733 | |||
USBM | F | 125 | 160 | 35 | 2.82 | 0 | 6,701 | |||
USBM | F | 190 | 206 | 16 | 5.76 | 0 | 6,657 | |||
USBM | H | 179 | 182 | 3 | 34.9 | 2.25 | 6,664 | |||
USBM | K | 138 | 147 | 9 | 3.22 | 0 | 6,767 | |||
USBM | K | 169 | 204 | 35 | 5.41 | 1.9 | 6,739 | |||
USBM | M | 148 | 163 | 15 | 4.29 | 0 | 6,732 | |||
USBM | Q | 80 | 201 | 121 | 4.38 | 0.04 | 6,745 | |||
USBM | Q | 218 | 228 | 10 | 4.4 | 0 | 6,677 | |||
Phillips | PMH-05 | 170 | 187 | 17 | 3.41 | 0 | 6,682 | |||
Phillips | PMH-05 | 240 | 260 | 20 | 4.3 | * | 6,610 | |||
Phillips | PMH-05 | 290 | 305 | 15 | 5.58 | * | 6,563 | |||
Phillips | PMH-05 | 315 | 335 | 20 | 4.24 | * | 6,535 | |||
Phillips | PMH-09 | 241 | 253 | 12 | 11.5 | * | 6,613 | |||
Phillips | PMH-09 | 317 | 323 | 6 | 5.35 | * | 6,540 | |||
From | To | Interval | Zinc | Silver | Midpoint | |||||
Company | Hole | (ft) | (ft) | (ft) | (%) | (opt) | Elevation | |||
Phillips | PMH-10 | 285 | 295 | 10 | 3.55 | * | 6,619 | |||
Phillips | PMH-10 | 363 | 366 | 3 | 10.5 | * | 6,544 | |||
Phillips | PMH-10 | 435 | 500 | 65 | 3.89 | * | 6,441 | |||
Phillips | UPMH-2 | 76.5 | 107 | 31 | 17.09 | 0.24 | 6,721 | |||
Asarco | A-2 | 140 | 150 | 10 | 2.06 | * | 6,656 | |||
Exxon | EMH-005 | 110 | 130 | 20 | 3.49 | 0.07 | 7,056 | |||
Exxon | EMH-005 | 140 | 150 | 10 | 2.79 | 0.067 | 7,031 | |||
Exxon | EMH-040 | 79 | 157 | 79 | 1.45 | 0.04 | 7,156 | |||
Exxon | EMH-048 | 335 | 344 | 10 | 2.41 | 0.06 | 6,935 | |||
Exxon | EMH-099 | 270 | 280 | 10 | 2.36 | 0.09 | 7,191 | |||
Exxon | EMH-099 | 310 | 320 | 10 | 5.85 | 0.2 | 7,151 | |||
Exxon | EMH-144 | 128 | 157 | 30 | 6.42 | 0.07 | 6,802 | |||
Exxon | EMH-144 | 167 | 187 | 20 | 4.01 | 0.06 | 6,767 | |||
Exxon | EMH-144 | 217 | 270 | 54 | 15.52 | 0.3 | 6,701 | |||
Exxon | EMH-144 | 423 | 514 | 91 | 3.7 | 0.2 | 6,476 | |||
IGMI | IGM-163 | 147 | 167 | 20 | 5.68 | 1.09 | 6,807 | |||
IGMI | IGM-163 | 177 | 187 | 10 | 3.9 | 0.02 | 6,786 | |||
IGMI | IGM-163 | 227 | 252 | 25 | 2.86 | 0.34 | 6,736 | |||
IGMI | IGM-164 | 202 | 222 | 20 | 2.83 | 1.87 | 6,744 | |||
IGMI | IGM-164 | 412 | 452 | 40 | 3.04 | 0.13 | 6,537 | |||
IGMI | IGM-166 | 396 | 406 | 11 | 11.9 | 1.81 | 6,650 | |||
IGMI | IGM-166 | 411 | 431 | 20 | 3.5 | 1.75 | 6,635 | |||
IGMI | IGM-167 | 157 | 192 | 35 | 4.22 | 0.2 | 6,779 | |||
IGMI | IGM-167 | 212 | 227 | 15 | 7.8 | 0.13 | 6,737 | |||
IGMI | IGM-167 | 267 | 282 | 15 | 5.16 | 0.03 | 6,685 | |||
IGMI | IGM-167 | 327 | 337 | 10 | 5.24 | 0.15 | 6,631 | |||
IGMI | IGM-167 | 357 | 367 | 10 | 3.91 | 0.07 | 6,603 | |||
IGMI | IGM-168 | 267 | 279 | 12 | 4.99 | 0.19 | 6,696 | |||
IGMI | IGM-168 | 317 | 376 | 59 | 3.67 | 1.41 | 6,629 | |||
GMI | MH-172 | 130 | 185 | 55 | 4.56 | 7.09 | 6,614 | |||
SOURCE: General Moly, Inc.
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