General Moly Updates Prefeasibility Study for Liberty Project

General Moly Inc. (TSX:GMO,NYSEMKT:GMO) announced the completion of an updated prefeasibility study for its Liberty project. According to the updated mine plan, a total of 402 million pounds of molybdenum and 308 million pounds of copper will be produced over the mine’s life. The total contained moly grade will be 0.078 percent, while copper’s will be 0.098 percent.

Highlights include:

• Total capital costs to construct the project are estimated at $366 million, reflecting the use of extensive existing infrastructure.
• Sustaining capital costs are estimated at $224 million over the Liberty Project’s 32 year life of mine (‘LOM’).
• For the first five full years of production:
  • annual salable production of approximately 14.0 million pounds of molybdenum and 7.5 million pounds of copper per year is expected based on a mill capacity to process 26,500 tons per day;
  • average on-site cash costs of $6.32 per pound are expected, using copper as a by-product credit; and
  • total cash costs of $7.79 per pound are expected, which includes off-site roasting, smelting, and shipping costs.
• The Liberty Project generates an after tax net present value (‘NPV’) at an 8% discount rate of $325 million, and an internal rate of return (‘IRR’) of 17.4%, assuming toll roasting, based on a long-term molybdenum price of $15.00 per pound and a long-term copper price of $3.25 per pound.
• There is the potential to increase the Liberty Project’s NPV and IRR on the basis that molybdenum concentrates from the Liberty Project could be toll roasted at the Mt. Hope Project, once constructed, which could increase the after tax NPV of the Liberty Project to 18.4%, and decrease total cash costs to$7.41 per pound for the first five full years of production.
• The Liberty Project has an after tax NPV breakeven molybdenum price of $11.64 per pound, at an 8% discount rate, and a non-discounted cash flow breakeven molybdenum price of $9.58 per pound.

Bruce D. Hansen, CEO of General Moly, commented:

Depending on market conditions and financing options, Liberty could be advanced through a Feasibility Study (‘FS’) as early as end of year 2015, with the potential to initiate construction as early as late 2017 under Nevada state permits, with production to follow in late 2019. Full realization of the economics of this Pre-Feasibility Study are partly dependent on the ultimate receipt of a federal Environmental Impact Statement record of decision (‘ROD’) at the start of production as a portion of the project is located on federal land, but a less favorable economic plan could be executed solely on private land for a few years, should there be a delay in receiving the ROD. This permitting option provides further flexibility and schedule upside. We expect the FS would focus on improving the project economics based on further drilling, sampling, and metallurgical testing to drive the potential for higher mill throughput, process recovery, and more optimal mine plan options.

Click here to read the full General Moly Inc. (TSX:GMO,NYSEMKT:GMO) press release.