General Moly Reports Positive Initial Drill Results at Mt. Hope Site Indicating Near-Surface, High-Grade Zinc and At-Depth Copper-Silver Mineralization; Update on Mt. Hope Water Applications: Opposition’s Attempt to Halt Hearing Denied

LAKEWOOD, COLORADO, September 4, 2018 – General Moly, Inc. (the “Company”) (NYSE American and TSX: GMO), the only western exchange listed, pure-play molybdenum mineral development company, announced positive initial drill assay results confirming near-surface, high-grade zinc and at-depth, noteworthy copper-silver mineralization at the Mt. Hope Project site in central Nevada.

Also, the Company announced that the Nevada Supreme Court denied Eureka County’s Writ Petition in an attempt to halt the scheduled September 11, 2018 hearing on the water applications for the Mt. Hope molybdenum project. (See Update section below.)

Results from hole MH-249 and partial results from hole MH-250 of an ongoing 10-hole exploration core drilling program were encouraging in identifying shallow horizons or bedding replacement in geologic terms of zinc mineralization, and encouraging copper-silver intercepts at a depth from surface of over 450 feet in hole MH-250. The high-grade, copper-silver target (“Cu-Ag Target”), which was first identified earlier this year by General Moly from historical drill data, lies at approximately 500 to 700 feet from the surface and below the historically mined zinc mineralized horizons.

Highlights from Initial Drill Results

  • Hole MH-249 showed consistent zinc mineralized intercepts (+3.5% zinc) from approximately four feet from the surface to a depth of 155 feet, including a
    • 5-foot interval with an average of 13.08% zinc, 0.07% copper and 0.16 silver ounce per ton (“opt”) beginning at 80.5 feet from surface.
  • Hole MH-250 intercepted
    • 88 feet of 1.16% zinc from a depth of 229 feet,
    • 5 feet of 0.99% copper and 2.8 opt silver from a depth of 480.5 feet,
    • 20 feet of 0.50% copper and 1.31 opt silver from a depth of 507 feet, and
    • 21 feet of 0.43% copper and 1.04 opt silver from a depth of 576 feet.
  • In the skarn target zone of drilling, the results from holes MH-249 and MH-250 indicate thick zinc horizons that may have open pit mining potential in this area of historical zinc underground mining.
  • Important copper-silver intercepts at depth in hole MH-250 will require follow-up exploration to expand the known mineralization.

Hole MH-249 was terminated at 155 feet from the surface after encountering an unmapped underground working that could not be bridged using normal drilling techniques. Assays are pending for the lower portion of hole MH-250 from 597 feet to 907 feet.

Commenting on the exploration drilling results, Bruce D. Hansen, Chief Executive Officer of General Moly said, “We are very encouraged by these early drill results. A drill intercept of nearly 75 feet of 13% zinc sulfides starting at 80 feet from surface in hole MH-249 reinforces the potential for evaluating a surface mineable zinc opportunity.

“In addition, there are meaningful copper-silver intercepts from 480 to 597 feet in hole MH-250 that will require further drilling to expand the historical high-grade mineralization along the contact zone between the porphyry and skarn. In this regard, the pending assay results from the lower portion of hole MH-250 and the assay results from angle hole MH-251 will provide additional insight. Hole MH-251 is currently being drilled from the same drill collar as hole MH-250, extending to the southwest and at a distance of 300 feet from the end of hole MH-250.”

This $0.8 million drilling program was undertaken to confirm and extend zinc, copper, and silver mineralization previously intersected in the 1940s through the 1970s by historical drilling by the United States Bureau of Mines and various companies. (Please see the Company’s exploration news releases of June 21, April 5, and March 1, 2018.) Drill collar locations and projections of the drill holes are shown in the Appendix below.

These first two drill holes intersected thick sequences of high-grade zinc and notable copper mineralization in strongly altered and metasomatized (altered rock by hydrothermal and other fluids) limestones, siliceous siltstones and calcareous siltstones of the Permian Garden Valley formation in close proximity to the Mt Hope quartz porphyry, which is the host of the Mt Hope molybdenum deposit. The molybdenum deposit lies to the northwest of the drilling location for holes MH-249 and MH-250.

Both holes MH-249 and MH-250 confirm and extend the base metal mineralization encountered in the historical drilling data.

Hole MH-249 was mineralized over its completed length. The sulfide portion returned 74.5-feet of sphalerite-bearing skarn averaging 13.1% zinc.

Hole MH-250 reached a final length of 907 feet. The assay profile was similar to that of hole MH-249 for both gossan and skarn intervals yielding average zinc grades of 7.4% and 10.9% respectively from bedding replacement occurrences. A 112-foot intercept along an interpreted fault in siltstone produced a lower-grade gossan that averaged 1.4% zinc. Four meaningful intercepts of chalcopyrite-bearing mineralization were encountered below 455-feet to 597-feet from the bedding replacement occurrences. Results are pending for the lower portion of hole MH-250.

Please refer to Table 1 below for the significant assay results.

Table 1: Significant Assay Results from Drill Holes MH-249 and MH-250, Mt. Hope Southeast Area

Drill Hole Rock type From (ft) To

(ft)

Interval (ft) Copper (%) Zinc

(%)

Silver
(opt)
MH-249 Gossan 3.9 12.0 8.1 0.004 3.569 0.240
MH-249 Skarn 12.0 17.0 5.0 0.004 4.850 0.117
MH-249 Gossan 17.0 80.5 63.5 0.071 6.996 0.216
MH-249 Skarn 80.5 155.0 74.5 0.068 13.081 0.156
MH-250 Gossan 3.0 92.0 89.0 0.142 7.355 0.448
MH-250 Skarn 107.0 117.0 10.0 0.021 10.935 0.058
MH-250 Siltstone Gossan 117.0 229.0 112.0 0.002 1.391 0.038
MH-250 Rhyolite 229.0 317.0 88.0 0.008 1.157 0.031
MH-250 Siltstone 455.0 467.0 12.0 0.371 0.049 0.966
MH-250 Skarn 480.5 487.0 6.5 0.992 0.127 2.803
MH-250 Skarn 507.0 527.0 20.0 0.497 0.066 1.305
MH-250 Silica-Pyrite 576.0 597.0 21.0 0.430 0.484 1.039

 

The skarns that characterize the wider target area of the drill program were formed from limestone precursors within the contact metamorphic aureole around the Mt. Hope porphyry stock. Higher-grade copper and silver mineralization occurs in proximity to the limestone-porphyry contact, while the zinc-dominant skarn replacement beds are often in more distal positions. Significant quantities of zinc were produced from these replacement bed deposits from underground mines that operated intermittently from 1886 to the 1970s.

Those assay intervals identified as gossan are comprised of iron and manganese oxides, estimated as poorly recoverable by flotation. Their economic significance is not known without further test work and leach evaluation. However, the zinc mineralized intervals in gossan are strong indicators of deeper, sulfide bedding replacement mineralization and are useful for geological interpretation.

Figure 1: Cross Section Looking North, Highlighting Significant Mineral Intercepts for Drill Hole MH-249 and Upper Portion of MH-250

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.

The drilling program is expected to be completed in October 2018. The Company will continue announcements of assay results as they become available.

With the drilling program, the Company is seeking to substantiate the occurrence of copper and silver mineralization lying below previously mined bodies of zinc ore. Thereafter, the Company will evaluate if there is sufficient tonnage and grade to justify a formal scoping study of a standalone mining operation or a mining operation associated with the planned Mt. Hope molybdenum mine.

General Moly holds an 80% interest in the Mt. Hope molybdenum project and continues to present these promising findings described herein 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.

Update on Mt. Hope Water Applications – Opposition’s Attempt to Halt Hearing Denied

The Company is also pleased to announce that on August 30, 2018, the Nevada Supreme Court issued an Order denying the Eureka County’s Writ Petition. The Writ had asked the Nevada Supreme Court to review the Nevada State Engineer’s denial of Eureka County’s Motion to Dismiss the water applications for the Mt. Hope molybdenum project.

With the Order denying the Writ, the eight-day hearing before the Nevada State Engineer will begin as previously scheduled, on September 11, 2018 in Carson City, Nevada. The Company anticipates a decision from the Nevada State Engineer in early 2019.

*****

Appendix: Drill Hole Location Map, Mt. Hope Southeast Area

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