General Moly Releases Results of Optional Scenario for Mount Hope

General Moly Inc. (TSX:GMO,NYSEMKT:GMO) announced yesterday the results of an internal study that considers an optional scenario for operating the Mount Hope project in the future “at a sustained lower price molybdenum environment.”

As quoted in the press release:

The study considered an optional scenario which would provide ore for 24 years of mining and 30 years of milling, compared with the base plan reported via the Company’s press release on December 5, 2013, which provides ore for 34 years of mining and 41 years of milling (mining duration excludes pre-production stripping). The optional scenario provides the Company with flexibility to respond to a sustained lower price molybdenum environment in later years, after the Mt. Hope Project is developed and operating.

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

The study provides an optional scenario which focuses on the high grade core of the deposit and incrementally enhances the project economics. In comparison with our base scenario, at a $12.50/lb molybdenum price, the optional scenario increases the after-tax Net Present Value (‘NPV’) at an 8% discount rate by 22% and reduces the NPV breakeven price to$10.82/lb from $11.19/lb in the base plan with the undiscounted cash flow breakeven price dropping to$9.35/lb in the improved plan from $9.80/lb in the base plan.

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