LAKEWOOD, COLO. — General Moly Inc. reported March 1 that has identified a potential high-grade, copper-silver exploration target along with a significant zinc mineralized area at the Mt. Hope Project site, southeast of the Mt. Hope's molybdenum deposit in central Nevada.
A review of historic drill results and a geophysical survey of Mt. Hope form the basis to commence a robust geologic review and further evaluation via a new 2018 exploration program, focused primarily on a high-grade copper-silver target, subject to further financing.
The Mt. Hope molybdenum project is 21 miles north of Eureka and has approximately 65 percent of engineering completed with no current engineering work in progress, while it is undergoing final phases of permitting to reobtain its water permits and record of decision. The company also wholly owns the Liberty Project, a molybdenum and copper property in central Nevada. Molybdenum is a metallic element used primarily as an alloy agent in steel manufacturing and in the chemical and petrochemical industries.
Because of the copper-silver target and zinc mineralization, General Moly undertook a high-intensity, ground-based induced polarization survey to determine if potential continuity and the size of the mineralization would justify additional exploration and evaluation. The IP survey was completed in February 2018 by Quantec Geoscience and indicates a fairly continuous group of high chargeability anomalies that appear aligned with the recently identified copper-silver target.
From as early as 1886, and sporadically until circa 1975, the Mt. Hope area produced zinc as well as by-product lead, copper, silver and cadmium from small-scale underground mines. With the strong recovery in zinc prices last year, General Moly staff conducted an evaluation of past exploration and drill data from the 1930s to 2008 from prior explorers.
From this review, the General Moly staff defined an anomalous zinc mineralized area of interest, characterized by skarn mineralization of carbonate rock, slightly overlapping the southeastern portion of the ultimate pit outline of the Mt. Hope molybdenum open pit mine plan. The company examined and recataloged the historic drill holes, and prioritized the drill data for zinc intercepts at a 0.5 percent cutoff and within 400 feet of the surface as a potential surface mineable target.
The company exploration thesis for the copper-silver target is to demonstrate that the apparent copper and silver mineralized envelope lies unexploited below the previously mined horizontal bands of zinc, and is open at depth and to the northeast. The company's goal is to define sufficient tonnage to economically justify an underground operation with either toll milling or development of a small mill with throughput of approximately 1,000 to 2,000 short tons per day, and, if built, could also process zinc-lead-copper-silver material in the future.