The Mount Hope deposit will be mined using conventional open pit methods. High grade material from the mine is processed in a mill at an average rate of approximately 60,000 tons per day. Lower grade material will be stockpiled and processed in years 32 through 44, once mining activities have ceased. In the first 5 years of operation the mine will produce approximately 40 million pounds of molybdenum annually at direct operating costs of approximately $5.29 per pound, based on $80 per barrel oil-equivalent energy costs.

Ore Processing

Processing includes a conventional crushing, grinding and flotation circuit, producing a molybdenum concentrate. Thickeners and filters will dewater these concentrates to produce a filter cake for further processing in a multi-hearth roaster to produce a final technical grade molybdenum oxide product (TMO). Recovery in the mill is expected to be 85.8% life of mine (higher recoveries at higher grades) and recoveries in the roaster circuit is expected to be 99.2% life of mine.

Project Permitting

The permitting process for Mt. Hope is well underway. The Company filed the Mt. Hope "Plan of Operations" with the Bureau of Land Management (BLM - Nevada) in June of 2006, which was determined to be complete in October of 2006. The Company has completed a number of baseline studies in preparation for the environmental impact statement (EIS), which is currently expected to be completed in the first half of 2011.

Products & End Markets Regions

The final end-market product will be technical grade molybdenum oxide (TMO), the most widely traded molybdenum product worldwide. The steel industry is the primary consumer of molybdenum products and will be the primary target market for Mt. Hope TMO. The Company may also consider converting its product into Ferro Molybdenum (FeMo), which is also utilized by the steel industry.