General Moly (NYSE MKT:GMO) (TSE:GMO), a U.S.-based molybdenum miner, said a U.S. District Court in Nevada has confirmed the Bureau of Land Management's (BLM) decision in 2012 to approve the plan of operations for the development and construction of its flagship Mt. Hope project.
The Nevada court denied a plaintiffs' motion for summary judgement, which sought to vacate the BLM's record of decision (ROD) approving the plans for the project, according to General Moly's statement.
The decision by the BLM permitted the construction and operation of the mining and processing facilities at Mt. Hope, and also granted the rights-of-way for the 230 kV power transmission line.
The project is considered one of the world's largest and highest grade molybdenum deposits, which sits just 23 miles northeast of Eureka in Nevada.
"We are pleased that the BLM's thorough and inclusive process in approving the Mt. Hope Project's ROD has been confirmed by the Court," said CEO Bruce D. Hansen.
"Obtaining the ROD for the Mt. Hope Project was the culmination of six years of hard work and dedicated effort from our team and the BLM, with significant input from all the cooperating and commenting agencies and the general public."
The chief executive added that the company is pursuing financing alternatives for the project, including talks with potential strategic partners capable of supporting a debt package to provide the bulk of Mt. Hope's capital requirements.
Separately, late Thursday, the company unveiled an updated prefeasibility study for its Liberty project, also located in central Nevada. Together with Mt. Hope, General Moly is seeking to become the largest pure play primary molybdenum producer.
Of the highlights from the study, the Liberty project is estimated to generate an after-tax net present value of $325 million, and an IRR of 17.4 percent, with total capital costs pegged at $366 million. For the first five full years of production, the property is expected to produce about 14 million pounds of molybdenum and 7.5 million pounds of copper per year.
General Moly said there is potential to increase the Liberty project’s economics if molybdenum concentrates could be toll roasted at the Mt. Hope project, once constructed.
Shares of General Moly were last up 2.7 percent at C$1.14 in Toronto, rising to as high as C$1.16 earlier in the session.