Drilling Program Underway At The Mt. Hope Project

LAKEWOOD, CO - General Moly, Inc. has commenced its initial 10-hole drilling program to follow up on a recently identified high-grade copper-silver mineral zone  (Target) within an anomalous zinc mineralized halo at the Mt. Hope Project site in central Nevada, with assay results expected in the fall. The Company’s 80%-owned joint venture company, which owns and operates the Mt. Hope Project, Eureka Moly, LLC (EMLLC); ended the quarter with a restricted cash balance of $8.2 million (100% basis) in a reserve account, and remains self-funded through 2021, based on estimated care and maintenance expenses.

The Company continues to evaluate joint business development opportunities in base metal and ferroalloys with AMER.  In 2Q 2018, the Company disbursed $0.2 million on business development activities from its restricted cash account with AMER designed to cover costs related to Mt. Hope Project financing and other jointly sourced business development opportunities. This restricted cash account was funded by a portion of the AMER Tranche 1 and 2 private placements made in 2015 and 2017.

Bruce D. Hansen, Chief Executive Officer, said, “We also are focused on our current exploration drilling program for copper, silver and zinc.  It is exciting to have a drill rig running at the attractive Cu-Ag Target at the Mt. Hope Project site. Our goal is to define sufficient tonnage and grade so as to fast track this project and justify a scoping study for a standalone mining operation or in association with the planned Mt. Hope moly mine.”

The Company identified the Cu-Ag Target and prospective zinc zone from a review of historical drill results from the 1930s to 2008. The Company then tested the area with an IP survey in February 2018, including 2D and 3D inversions, which produced positive results.