**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**




**FORM
      10-QSB/A**


**Amendment
      #2**





x
            ****
            **QUARTERLY
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934******
            ****
            ********
            
            **For
                the quarterly period ended March 31, 2007******
            
            ******o**
            ****
            **TRANSITION
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934**




**For
      the transition period from ___________ to ___________**




**General
      Moly, Inc.**


(Name
      of
      small business issuer in its charter)





**DELAWARE**
            
            **001-32986**
            
            **91-0232000**(State
                or other jurisdiction of
                incorporation or organization)
            
            Commission
                File Number
            
            (I.R.S.
                Employer




**1726
      Cole Blvd., Suite 115**


**Lakewood,
      CO 80401**


**Telephone:
      (303) 928-8599**


(Address
      and telephone number of principal executive offices)





Idaho
      General Mines, Inc.


10
      North
      Post St., Suite 610


Spokane,
      WA 99201


(Former
      name, former address and former fiscal year, if changed since last
      report)




Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or 15(d) of the Exchange Act during the past 12 months (or for such shorter
      period that the registrant was required to file such reports), and (2) has
      been
      subject to such filing requirements for at least the past 90 days. **YES
      x** **NO
      o**




Indicate
      by check mark whether the
      registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). **YES
      o** **NO
      x**




The number of
      shares outstanding of registrant’s common stock as of May 10, 2007 was
      54,363,631.




Transitional Small
      Business Disclosure Format (check one): **YES
      o** **NO
      x**







**EXPLANATORY
      NOTE**





This
      Amendment No. 2 on Form 10-QSB/A (this “Amendment”) amends and restates items
      identified below with respect to the Form 10-QSB and Amendment No. 1 on Form
      10-QSB/A filed by General Moly, Inc. (formerly “Idaho General Mines, Inc.”)
      (“we” or the “Company”) for the period ended March 31, 2007 with the Securities
      and Exchange Commission (the “SEC”) on May 16, 2007 and June 5, 2007,
      respectively (the “Original Filing”). The purpose of this Amendment is to amend
      and restate the previously issued financial statements included in the Original
      Filing for the reasons described in Note 2 to the financial statements included
      in Item 1 (Financial Statements) herein. Other than as set forth below, the
      items of the Original Filing continue to speak as of the date of the original
      filing date thereof, and the disclosure relating to such items is not being
      updated.





This
      Amendment amends and restates the information in Item 1 (Financial Statements)
      and Item 2 (Management’s Discussion and Analysis of Operation) of the Original
      Filing. Except for the foregoing amended and restated information and the
      information set forth below under the heading “Subsequent Event,” this Amendment
      continues to describe conditions as of the date of the Original Filing, and
      the
      disclosures contained herein have not been updated to reflect events, results
      or
      developments that have occurred after the date of the Original Filing, or to
      modify or update those disclosures affected by subsequent events. Among other
      things, forward-looking statements made in the Original Filing have not been
      revised to reflect events, results or developments that have occurred or facts
      that have become known to us after the date of the Original Filing, and such
      forward-looking statements should be read in their historical context. This
      Amendment should be read in conjunction with the Company’s filings made with the
      SEC subsequent to the Original Filing, including any amendments to those
      filings.




***Subsequent
      Event***





On
      October 8, 2007, we reincorporated the Company in the State of Delaware (the
      “Reincorporation”) through a merger involving Idaho General Mines, Inc. and
      General Moly, Inc., a newly-formed Delaware corporation that was a wholly owned
      subsidiary of Idaho General Mines, Inc. The Reincorporation was effected by
      merging Idaho General Mines, Inc. with and into General Moly, with General
      Moly
      being the surviving entity. In connection with the Reincorporation, all of
      the
      outstanding securities of Idaho General Mines, Inc. were converted into
      securities of General Moly on a one-for-one basis. For purposes of the Company’s
      reporting status with the Securities and Exchange Commission, General Moly
      is
      deemed a successor to Idaho General Mines, Inc.




-2-


**PART
      1 - FINANCIAL INFORMATION**




**ITEM
      1.**  **FINANCIAL
      STATEMENTS**




**GENERAL
      MOLY, INC.**


**(AN
      EXPLORATION STAGE COMPANY)**


**Consolidated
      BALANCE SHEETS**


**(Unaudited
      - Dollars in thousands, except per share amounts)**


**(Restated
      - Note 2)**





**March 31,**
              **2007**
            
            **December 31**
              **2006****ASSETS:**CURRENT
                ASSETSCash
                and cash equivalents
            
            $
            24,023
            
            $
            17,883Other
                Receivables
            
            
            2
            
            
            —Deposits
            
            
            310
            
            
            146Prepaid
                expense
            
            
            28
            
            
            46Total
                Current Assets
            
            
            24,363
            
            
            18,075PROPERTY
                AND EQUIPMENT, net
            
            
            535
            
            
            431RECLAMATION
                BOND
            
            
            490
            
            
            —LAND
                AND MINING CLAIMS
            
            
            13,324
            
            
            8,598**TOTAL
                ASSETS**
            
            $
            38,712
            
            $
            27,104**LIABILITIES
                AND STOCKHOLDERS’ EQUITY**CURRENT
                LIABILITIESAccounts
                payable and accrued liabilities
            
            $
            2,296
            
            $
            1,076Provision
                for post closure monitoring costs
            
            
            212
            
            
            —Current
                portion of long term debt
            
            
            29
            
            
            19Total
                Current Liabilities
            
            
            2,537
            
            
            1,095Provision
                for post closure monitoring cost, net of current portion
            
            
            502
            
            
            —Long
                term debt, net of current portion
            
            
            73
            
            
            58Total
                Liabilities
            
            
            3,112
            
            
            1,153STOCKHOLDERS’
                EQUITYPreferred
                stock, Series A, $0.001 par value; 10,000,000 shares authorized,
                no shares
                issued and outstanding
            
            
            —
            
            
            —Common
                stock, $0.001 par value; 200,000,000 shares authorized, 44,205,545
                and
                43,397,540 shares issued and outstanding, respectively
            
            
            44
            
            
            43Additional
                paid-in capital
            
            
            50,397
            
            
            46,017Common
                stock issuable
            
            
            14,341
            
            
            —Accumulated
                deficit before exploration stage
            
            
            (213
            )
            
            (213
            )Accumulated
                deficit during exploration stage
            
            
            (28,969
            )
            
            (19,896
            )Total
                Stockholders’ Equity
            
            
            35,600
            
            
            25,951**TOTAL
                LIABILITIES AND STOCKHOLDERS’ EQUITY**
            
            $
            38,712
            
            $
            27,104





The
      accompanying condensed notes are an integral part of these financial
      statements.




-3-


**GENERAL
      MOLY, INC.**


**(AN
      EXPLORATION STAGE COMPANY)**


**CONSOLIDATED
      STATEMENTS OF OPERATIONS**


**(Unaudited
      - In thousands except per share amounts)**


**(Restated
      - Note 2)**




**Three
                Months Ended**
            
            **January 1,****2002**
              **Inception
                of**
              **Exploration****Stage)
                to****March 31,****2007**
            
            **March 31,****2006**
            
            **March 31,****2007**REVENUES
            
            $
            —
            
            $
            —
            
            $
            —OPERATING
                EXPENSES:Property
                research, exploration and development
            
            
            3,842
            
            
            1,270
            
            
            14,194General
                and administrative expense
            
            
            5,399
            
            
            1,062
            
            
            15,944TOTAL
                OPERATING EXPENSES
            
            
            9,241
            
            
            2,332
            
            
            30,138LOSS
                FROM OPERATIONS
            
            
            (9,241
            )
            
            (2,332
            )
            
            (30,138
            )OTHER
                INCOMEInterest
                and dividend income
            
            
            168
            
            
            144
            
            
            1,103Realized
                gain on marketable securities
            
            
            —
            
            
            —
            
            
            5Income
                from timber sales
            
            
            —
            
            
            —
            
            
            60TOTAL
                OTHER INCOME
            
            
            168
            
            
            144
            
            
            1,168LOSS
                BEFORE TAXES
            
            
            (9,073
            )
            
            (2,188
            )
            
            (28,970
            )INCOME
                TAXES
            
            
            —
            
            
            —
            
            
            —NET
                LOSS
            
            $
            (9,073
            )
            $
            (2,188
            )
            $
            (28,970
            )BASIC
                AND DILUTED NET LOSS PER SHARE OF COMMON STOCK
            
            $
            (0.21
            )
            $
            (0.07
            )WEIGHTED
                AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED
            
            
            43,746
            
            
            30,910





The
      accompanying condensed notes are an integral part of these interim financial
      statements.




-4-


**GENERAL
      MOLY, INC.**


**(AN
      EXPLORATION STAGE COMPANY)**


**CONSOLIDATED
      STATEMENTS OF CASH FLOWS**


**(Unaudited
      - In thousands)**


**(Restated
      - Note 2)**




**Three
                Months****Ended**
              **March 31,
                2007**
            
            **Three
                Months****Ended**
              **March 31,
                2006**
            
            **January
                1, 2002**
              **(Inception
                of**
              **Exploration****Stage
                to**
              **March 31,****2007**CASH
              FLOWS FROM OPERATING ACTIVITIES:Net
                loss
            
            $
            (9,073
            )
            $
            (2,188
            )
            $
            (28,970
            )Adjustments
                to reconcile net loss to net cash used by operating activities:Services
                and expenses paid with common stock
            
            
            304
            
            
            308
            
            
            1,991Depreciation
                and amortization
            
            
            33
            
            
            5
            
            
            106Gain
                on sale of investments
            
            
            —
            
            
            —
            
            
            (9
            )Unrealized
                loss on securities
            
            
            —
            
            
            —
            
            
            4Adjustment
                to equity
            
            
            —
            
            
            —
            
            
            (8
            )Equity
                compensation management and directors
            
            
            3,131
            
            
            108
            
            
            6,441Decrease
                (increase) in employee advances
            
            
            —
            
            
            9
            
            
            —Decrease
                (increase) in prepaid expenses and deposits
            
            
            (146
            )
            
            32
            
            
            (368
            )Decrease
                (increase) in accounts payable and accrued expenses
            
            
            1,166
            
            
            (385
            )
            
            2,272Net
                cash used by operating activities
            
            
            (4,585
            )
            
            (2,111
            )
            
            (18,541
            )CASH
                FLOWS FROM INVESTING ACTIVITIES:Payments
                for the purchase of equipment
            
            
            (104
            )
            
            (39
            )
            
            (482
            )Purchase
                of securities
            
            
            —
            
            
            —
            
            
            (458
            )Cash
                provided from the purchase of mining property, claims
            
            
            1,279
            
            
            —
            
            
            1,279Purchase
                of mining property, claims, options
            
            
            (5,339
            )
            
            (4,460
            )
            
            (12,805
            )Payments
                on capital leases
            
            
            (6
            )
            
            —
            
            
            (6
            )Cash
                provided by sale of marketable securities
            
            
            —
            
            
            —
            
            
            247Net
                cash provided (used) by investing activities
            
            
            (4,170
            )
            
            (4,499
            )
            
            (12,225
            )CASH
                FLOWS FROM FINANCING ACTIVITIES:Cash
                received for common stock issuable
            
            
            14,341
            
            
            —
            
            
            14,341Proceeds
                from issuance of stock
            
            
            554
            
            
            32,214
            
            
            40,402Net
                cash provided by financing activities:
            
            
            14,895
            
            
            32,214
            
            
            54,743Net
                increase (decrease) in cash and cash equivalents
            
            
            6,140
            
            
            25,604
            
            
            23,977Cash
                and cash equivalents, beginning of period
            
            
            17,883
            
            
            257
            
            
            44Cash
                and cash equivalents, end of period
            
            $
            24,023
            
            $
            25,861
            
            $
            24,021SUPPLEMENTAL
                DISCLOSURES OF CASH FLOW INFORMATION:Income
                taxes paid
            
            $
            —
            
            $
            —
            
            $
            —Interest
                paid
            
            $
            —
            
            $
            —
            
            $
            —NON-CASH
                INVESTING AND FINANCING ACTIVITIES:Common
                stock issued for equipment
            
            $
            —
            
            $
            11
            
            $
            11Common
                stock and warrants issued for property
            
            $
            420
            
            $
            —
            
            $
            1,169Reclamation
                bond acquired from Equatorial
            
            $
            491
            
            $
            —
            
            $
            491Post
                closure monitoring cost acquired from Equatorial
            
            $
            751
            
            $
            —
            
            $
            751Accounts
                payable and accrued expenses acquired from Equatorial
            
            $
            54
            
            $
            —
            
            $
            54





The
      accompanying condensed notes are an integral part of these interim financial
      statements.




-5-


**GENERAL
      MOLY, INC.**


**(AN
      EXPLORATION STAGE COMPANY)**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**MARCH
      31, 2007**




**NOTE
      1—DESCRIPTION OF BUSINESS**




General
      Moly, Inc. (the “Company” or “GMO”) is a Delaware corporation originally
      incorporated as General Mines Corporation on November 23, 1925. In 1966,
      the Company amended its articles of incorporation to change its name to Idaho
      General Petroleum and Mines Corporation, and amended its articles again in
      1967
      changing its name to Idaho General Mines, Inc. On October 8, 2007, the
      Company reincorporated in the State of Delaware (the “Reincorporation”) through
      a merger involving Idaho General Mines, Inc. and General Moly, Inc., a
      newly-formed Delaware corporation that was a wholly owned subsidiary of Idaho
      General Mines, Inc. The Reincorporation was effected by merging Idaho General
      Mines, Inc. with and into GMO, with GMO being the surviving entity. For
      purposes of the Company’s reporting status with the Securities and Exchange
      Commission, GMO is deemed a successor to Idaho General Mines,
      Inc.




The
      Company’s historic activities have principally consisted of the exploration for
      nonferrous and precious metals in and around Shoshone County, Idaho. The Company
      entered a new exploration stage in early January 2002 when it shifted its
      focus to minerals exploration. In May 2004, the Company began a search for
      substantive mineral properties with a focus on metals such as copper, zinc,
      silver, gold and specialty metals. GMO entered into an option to lease the
      Mount
      Hope molybdenum property located in Nevada in November 2004 and exercised
      that option in October 2005 after several phases of feasibility studies and
      project design studies which indicated the attractiveness of the project. GMO
      similarly optioned the Hall Tonopah molybdenum-copper property, also in Nevada,
      in 2005 and exercised that option to purchase the Hall Tonopah property in
      March 2006 with the intent of assessing economic feasibility by exploring
      and assessing the property’s potential. Accordingly, GMO has assumed the role of
      exploring, and as warranted, developing major mineral deposits which are at
      a
      relatively advanced stage and are worthy of economic consideration.




The
      interim Condensed Consolidated Financial Statements of the Company and its
      subsidiaries are unaudited. In the opinion of management, all adjustments and
      disclosures necessary for a fair presentation of these interim statements have
      been included. All such adjustments are, in the opinion of management, of a
      normal and recurring nature. The results reported in these interim Condensed
      Consolidated Financial Statements are not necessarily indicative of the results
      that may be reported for the entire year. These interim Condensed Consolidated
      Financial Statements should be read in conjunction with GMO’s Consolidated
      Financial Statements included in its Annual Report on Form 10-KSB/A for the
      year
      ended December 31, 2006.




On
      January 30, 2007, the Company completed the acquisition of all of the
      issued and outstanding shares of a corporation that owned a royalty interest
      in
      our Hall-Tonopah Property (see note 6). Upon its acquisition, the
      corporation was consolidated as a wholly owned subsidiary of the
      Company.




**NOTE
      2—RESTATEMENT OF PRIOR YEAR FINANCIAL STATEMENTS**




The
      Company has corrected its accounting treatment for certain non-cash adjustments
      primarily related to the calculation of and recognition of compensation expense
      and the valuation of warrants to purchase common shares of the Company under
      FASB Statement 123 - *Accounting
      for Stock-Based Compensation,* FASB
      Statement 123(R) - *Share
      Based Payment* and EITF
      96-18 - *Accounting
      for Equity Instruments That Are Issued to Other Than Employees for Acquiring,
      or
      in Connection with Selling Goods and Services* .
      The
      Company had utilized volatility assumptions which were too low in determining
      the value of certain equity instruments issued during the periods and failed
      to
      attribute value to certain warrants included as consideration in transactions
      with third parties. This resulted in the Company valuing equity instruments
      granted and/or issued at too low of a value and, accordingly, the amounts
      recorded for these non-cash transactions were understated.




Additionally
      during the periods, the Company did not account for forfeitures of employee
      options which occurred prior to vesting, resulting in an overstatement of
      non-cash compensation expense, and allocated stock-related compensation costs
      to
      the incorrect service periods. Furthermore, in the year ended December 31,
      2006, the Company incorrectly allocated a portion of the cash consideration
      paid
      for water rights to non marketable securities and subsequently impaired such
      securities, rather than allocating this portion of the consideration to the
      purchase of such water rights.




-6-




In
      addition, the Company has corrected certain other immaterial errors.
      At March 31, 2007 the cumulative effect of all changes was an increase to
      the cost of our land and mining claims of $713,000, an increase in property
      research, exploration and development expense of $268,000 an increase in general
      and administration expense of $186,000, a decrease in realized loss on
      marketable securities of $ 321,000, and an increase to our net equity of
      $588,000.




The
      impact of these errors on each of the Company’s previously issued financial
      statements, are set forth in the table below (in thousands except per share
      amounts).




**As
                Originally Reported**
            
            **As**
              **Restated**
            
            **Impact
                of the Error Increase (Decrease)****Income
                Statement for the three months ended March 31,
                2006**Property
                research, exploration and development expenses
            
            $
            1,145
            
            
            1,270
            
            
            125General
                and administrative expenses
            
            
            1,068
            
            
            1,062
            
            
            (6
            )Net
                loss
            
            
            2,070
            
            
            2,188
            
            
            118Basic
                and fully diluted loss per share
            
            
            .07
            
            
            .07
            
            
            -**Income
                Statement for the three months ended March  31,
                2007**Property
                research, exploration and development expenses
            
            
            3,912
            
            
            3,842
            
            
            (70
            )General
                and administrative expenses
            
            
            5,403
            
            
            5,399
            
            
            (4
            )Net
                loss
            
            
            9,147
            
            
            9,073
            
            
            (74
            )Basic
                and fully diluted loss per share
            
            
            .21
            
            
            .21
            
            
            -**Balance
                Sheet at December 31, 2006**Land
                and Mining Claims
            
            
            7,885
            
            
            8,598
            
            
            713Total
                Assets
            
            
            26,391
            
            
            27,104
            
            
            713Accrued
                Liabilities
            
            
            970
            
            
            1,095
            
            
            125Additional
                Paid in Capital
            
            
            45,221
            
            
            46,017
            
            
            796Accumulated
                Deficit
            
            
            (19,902
            )
            
            (20,109
            )
            
            (207
            )Total
                Stockholders’ Equity
            
            
            25,362
            
            
            25,951
            
            
            589**Balance
                Sheet at March  31, 2007**Land
                and Mining Claims
            
            
            12,611
            
            
            13,324
            
            
            713Total
                Assets
            
            
            37,999
            
            
            38,712
            
            
            713Additional
                Paid in Capital
            
            
            49,676
            
            
            50,397
            
            
            721Accumulated
                Deficit
            
            
            (29,049
            )
            
            (29,182
            )
            
            (133
            )Total
                Stockholders’ Equity
            
            
            35,012
            
            
            35,600
            
            
            588





-7-




**NOTE
      3—LIQUIDITY AND CAPITAL REQUIREMENTS (AND SUBSEQUENT
      EVENT)**




On
      October 4, 2007 the Company’s Board of Directors approved the development of the
      Mount Hope Project as contemplated in the Bankable Feasibility Study. The
      development of the Mount Hope Project has an estimated total capital requirement
      of approximately $1 billion comprised of initial construction cost in excess
      of
      $850 million; $50 to $70 million in cash bonding requirements;
      $27 million in advance royalty payments; and amounts necessary for
      financing costs and working capital. Such capital requirements are management’s
      best estimates based on the Bankable Feasibility Study and other available
      information, and are subject to change, which changes could be material. The
      Company will also require additional capital to continue the exploration and
      evaluation of Hall-Tonopah, as well as continue payment of ongoing general,
      administrative and operations costs associated with supporting its planned
      operations, the amounts of which are presently unknown.




The
      capital will be required through the commencement of Mount Hope production
      estimated to be in the second half of 2010. Our ability to develop the project
      on time and on budget is dependent on, among other things, our ability to raise
      the necessary capital to fund the Mount Hope Project both in sufficient quantity
      of capital and at the time such capital is needed. Additionally, if the
      estimated costs of the Mount Hope Project are exceeded we will need to raise
      additional capital to fund such overruns.




The
      Company does not currently have the capital necessary to complete the Mount
      Hope
      Project and, accordingly, plans to raise the capital on an ongoing basis when
      needed. Our current business plan and project time schedule will require the
      Company to raise approximately $200 million in capital from now through
      December 31, 2008 with $10 to $20 million of such amount required by
      December 31, 2007. If the Company is unable to raise sufficient quantities
      of capital when needed, it will be necessary to develop alternative plans that
      would likely delay the development and completion of the Mount Hope Project.
      There is no assurance that we will be able to obtain the necessary financing
      for
      the Mt. Hope Project on customary terms, or at all.




**NOTE
      4—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**




This
      summary of significant accounting policies is presented to assist in
      understanding the financial statements. The financial statements and notes
      are
      representations of the Company’s management, which is responsible for their
      integrity and objectivity. These accounting policies conform to accounting
      principles generally accepted in the United States of America and have been
      consistently applied in the preparation of the financial
      statements.




*Accounting
      Method*




The
      Company’s financial statements are prepared using the accrual basis of accounting in accordance
      with
      accounting principles generally accepted in the United States of
      America.




*Accounting
      Pronouncements—Recent*




In
      February 2007, the Financial Accounting Standards Board issued Statement of
      Financial Accounting Standards No. 159. “The Fair Value
      Option for Financial Assets and Financial Liabilities Including an amendment
      of
      FASB Statement No. 115.” This statement permits entities to choose to
      measure many financial instruments and certain other items at fair value. The
      objective is to improve financial reporting by providing entities with the
      opportunity to mitigate volatility in reported earnings caused by measuring
      related assets and liabilities differently without having to apply complex
      hedge
      accounting provisions. This statement is expected to expand the use of fair
      value measurement, which is consistent with the Board’s long term measurement
      objective for accounting for financial instruments. This statement is effective
      as of the beginning of an entity’s first fiscal year that begins after
      November 15, 2007, although earlier adoption is permitted. Management has
      not determined the effect that adopting this statement would have on the
      Company’s financial condition or results of operation.




In
      September 2006, the Financial Accounting Standards Board issued Statement of
      Financial Accounting Standards No. 157, “ Fair Value
      Measurements.” This statement defines fair value, establishes a framework for
      measuring fair value in generally accepted accounting principles (GAAP), and
      expands disclosure about fair value measurements. This statement applies under
      other accounting pronouncements that require or permit fair value measurements.
      This statement does not require any new fair value measurements, but for some
      entities, the application of this statement may change current practice. The
      adoption of this statement had no immediate material effect on the Company’s
      financial condition or results of operations.




-8-




In
      June
      2006, the Financial Accounting Standards Board issued FASB Interpretation
      No. 48, “Accounting for Uncertainty in Income Taxes an interpretation of
      FASB Statement No 109” (hereinafter “FIN 48”), which prescribes a
      recognition threshold and measurement attribute for the financial statement
      recognition and measurement of tax position taken or expected to be taken in
      a
      tax return. FIN 48 also provides guidance on de-recognition,
      classification, interest and penalties, accounting in interim periods,
      disclosure and transition. FIN 48 is effective for fiscal years beginning
      after December 15, 2006. The Company’s adoption of FIN 48 did not have
      any impact on the Company’s previously reported financial position as it has no
      uncertain tax positions.




*Cash
      and Cash Equivalents*




For
      the
      purposes of the statement of cash flows, the Company considers all highly liquid
      investments with original maturities of three months or less to be cash
      equivalents.




*Estimates*




The
      process of preparing financial statements in conformity with accounting
      principles generally accepted in the United States of America requires the
      use
      of estimates and assumptions regarding certain types of assets, liabilities,
      revenues, and expenses. Such estimates primarily relate to unsettled
      transactions and events as of the date of the financial statements. Accordingly,
      upon settlement, actual results may differ from estimated amounts.




*Exploration
      Stage Activities*




The
      Company has been in the exploration stage since January 2002 and has not
      realized any revenue from operations. It will be primarily engaged in minerals
      exploration until it enters a development or operations stage.




*Fair
      Value of Financial Instruments*




The
      Company’s financial instruments as defined by Statement of Financial Accounting
      Standards No. 107, “Disclosures about Fair Value of Financial Instruments,”
include cash, accounts payable and accrued liabilities. All instruments are
      accounted for on a historical cost basis, which, due to the short maturity
      of
      these financial instruments, approximates fair value at March 31, 2007 and
      December 31, 2006.




*Basic
      and Diluted Net Loss Per Share*




Net
      loss
      per share was computed by dividing the net loss by the weighted average number
      of shares outstanding during the period. The weighted average number of shares
      was calculated by taking the number of shares outstanding and weighting them
      by
      the amount of time that they were outstanding. Diluted net loss per share for
      GMO is the same as basic net loss per share, as the inclusion of common stock
      equivalents would be antidilutive.




*Mineral
      Exploration and Development Costs*




All
      exploration expenditures are expensed as incurred. Significant property
      acquisition payments for active exploration properties are capitalized. If
      no
      minable ore body is discovered, previously capitalized costs are expensed in
      the
      period the property is abandoned. Expenditures to develop new mines, to define
      further mineralization in existing ore bodies, and to expand the capacity of
      operating mines, are capitalized and amortized on a units-of-production basis
      over proven and probable reserves.




Should
      a
      property be abandoned, its capitalized costs are charged to operations. The
      Company charges to operations the allocable portion of capitalized costs
      attributable to properties sold. Capitalized costs are allocated to properties
      sold based on the proportion of claims sold to the claims remaining within
      the
      project area.




-9-




*Mining
      Claims and Land*




Costs
      of
      acquiring and developing mineral properties are capitalized as appropriate
      by
      project area. Exploration and related costs
      and costs to maintain mineral rights and leases are expensed as incurred. When
      a
      property reaches the production stage, the related capitalized costs are
      amortized using the units-of-production method on the basis of periodic
      estimates of ore reserves. Mineral properties are periodically assessed for
      impairment of value, and any subsequent losses are charged to operations at
      the
      time of impairment. If a property is abandoned or sold, its capitalized costs
      are charged to operations.




*Provision
      for Taxes*




Income taxes
      are provided based upon the liability method of accounting pursuant to Statement
      of Financial Accounting Standards No. 109, “Accounting for Income Taxes”
(hereinafter “SFAS No. 109”). Under this approach, deferred income taxes
      are recorded to reflect the tax consequences in future years of differences
      between the tax basis of assets and liabilities and their financial reporting
      amounts at each year-end. A valuation allowance is recorded against the deferred
      tax asset if management does not believe the Company has met the “more likely
      than not” standard imposed by SFAS No. 109 to allow recognition of such an
      asset.




*Reclamation
      and Remediation*




Expenditures
      for ongoing compliance with environmental regulations that relate to current
      operations are expensed or capitalized as
      appropriate. Expenditures resulting from the remediation of existing conditions
      caused by past operations that do not contribute to future revenue generations
      are expensed. Liabilities are recognized when environmental assessments indicate
      that remediation efforts are probable and the costs can be reasonably
      estimated.




Estimates
      of such liabilities are based upon currently available facts, existing
      technology and presently enacted laws and regulations taking into consideration
      the likely effects of inflation and other societal and economic factors, and
      include estimates of
      associated legal costs. These amounts also reflect prior experience in
      remediating contaminated sites, other companies’ clean-up experience and data
      released by The Environmental Protection Agency or other organizations. Such
      estimates are by their nature imprecise and can be expected to be revised over
      time because of changes in government regulations, operations, technology and
      inflation. Recoveries are evaluated separately from the liability and, when
      recovery is assured, the Company records and reports an asset separately from
      the associated liability. At March 31, 2007 and December 31, 2006, the
      Company had accrued liabilities for compliance with environmental regulations
      of
      $714,134 and $0, respectively.




*Reclassification*




Certain
      amounts from prior periods have been reclassified to conform to the current
      period presentation. This reclassification has resulted
      in no changes to the Company’s accumulated deficit or net losses presented.
      Previously, directors’ fees paid by issuing common stock were not disclosed
      separately in the Company’s statement of cash flows. These fees were part of
      services and expenses paid with common stock.




-10-




**NOTE
      5—LAND, MINING CLAIMS, PROPERTY, AND EQUIPMENT**




During
      the three months ended March 31, 2007 the Company purchased vehicles for
      $34,206, field equipment for $45,173, and office and computers and related
      equipment for $57,366. The vehicles, equipment and computers will be depreciated
      over useful lives of
      three to seven years using straight line depreciation. Depreciation expense
      for
      the three months ended March 31, 2007 is $32,840.




During
      the year ended December 31, 2006 the Company purchased vehicles for
      $164,575, field equipment for $10,116, and office and
      computers and related equipment and improvements for $260,194. The vehicles,
      equipment and computers will be depreciated over useful lives of three to seven
      years using straight line depreciation. Depreciation expense for the year ended
      December 31, 2006 is $57,578.




On
      November 12, 2004, GMO entered into an option to lease all property and
      assets of the Mount Hope Molybdenum Property from Mt. Hope Mines, Inc. Exercise
      of the option in October 2005 allows GMO to proceed for the next
      30 year s with
      permitting, developing and mining the deposit and for so long thereafter as
      GMO
      maintains an active operation. At
      December 31, 2004, the Company had paid $186,044 cash and issued 500,000
      shares of common stock with warrants to purchase 500,000 shares of common stock
      to Mt. Hope Mines, Inc. for the Mount Hope option.




Pursuant
      to the terms of the lease, the underlying total royalty on production payable
      to
      Mt. Hope Mines, Inc., less certain deductions, is 3 percent for a molybdenum
      price up to $12 per pound, 4 percent for a molybdenum price up to $15 per pound,
      and 5 percent for a molybdenum price above $15 per pound. GMO is subject to
      certain periodic payments totaling $1,550,000 to be paid as per schedule between
      January 2006 and October 2010. GMO has a best efforts obligation, by
      the third anniversary of the lease, to pay Mt. Hope Mines, Inc. a recoverable
      periodic payment (advance royalty) of 3 percent of the estimated capital cost
      of
      the project. This obligation to pay 3 percent of the construction capital
      is subject to certain extension provisions through October 2013. Minimum
      royalty payment after the mine commences operations is $0.27 a pound of
      molybdenum if produced or $500,000 per year if the plant is idle.
      Additionally, GMO is obligated to pay Exxon Mineral Company a one percent
      net smelter royalty on all production




During
      the year ended December 31, 2005 the Company entered into an option agreement with High
      Desert Winds LLC (“High Desert”) for High Desert’s approximately ten square mile
      property in Nye County, Nevada, including water rights, mineral and surface
      rights, buildings and certain equipment (the “Hall Tonopah Property”). Pursuant
      to the terms of this agreement, the Company was granted a nine-month option
      to
      purchase the Hall Tonopah Property. The Company extended the option agreement
      with High Desert with payments of $75,000 in June 20 0 5
      and
      $100,000 in August 2005. The option to purchase the Hall Tonopah Property was
      subsequently extended to March 17, 2006 with an $80,000 payment on
      January 17, 2006. On March 17, 2006, the Company entered into a
      purchase agreement with High Desert whereby it purchased a substantial portion
      of the Hall Tonopah Property. At closing, the Company paid High Desert a cash
      payment of approximately $4.5 million for the portion of the Hall Tonopah
      Property that it purchased and made a deferred payment of $989,789 in
      November of 2006 for the purchase
      of the remaining portion of this property for the total purchase price of
      $5,449,616 including $32,698 in buildings and equipment at the Hall Tonopah
      site. The primary purpose of the Hall Tonopah purchase was to further the
      Company’s strategy of exploring and developing potential molybdenum properties.
      The buildings and improvements to the property were valued at $32,698 based
      on a
      previous recent transaction at the property, and the remaining amount was
      allocated to the land. At December 31, 2006 the Hall Tonopah property was
      subject to a 12 percent royalty payable with respect to the net revenues
      generated from molybdenum or copper minerals removed from the properties
      purchased.




On
      January 30, 2007, the Company completed the acquisition of all of the
      issued and outstanding shares of Equatorial Mining North America,
      Inc., a Delaware corporation (“Equatorial”), from Equatorial Mining Limited
      (“Equatorial Mining Limited”). Equatorial holds the 12 percent net smelter
      royalty interest in the mineral rights of the Hall Tonopah property and as
      a
      result of this purchase, the Company now owns the Hall-Tonopah property and
      all
      associated mineral rights without future royalty obligations. As set forth
      in
      the Purchase Agreement, the Company paid to Equatorial Mining Limited
      approximately $4.9 million in cash at closing. At first commercial
      production of the property, the Company has agreed to pay an additional
      $6.0 million. Because the Company cannot determine beyond a reasonable
      doubt that the mine will attain commercial production the Company has chosen
      not
      to recognize the $6.0 million liability in its financial statements. By
      purchasing Equatorial, the Company also assumed an approximate $460,000 cash
      reclamation bond which will continue to be held by the Nevada Department of
      Environmental Protection and the Bureau of Land Management and acquired cash
      of
      approximately $1.3 million.




-11-




In
      July
      2006, the Company purchased 1,503 acres of deeded land which includes 70,000
      acres of BLM grazing rights and certain water rights known as the Gale Ranch
      for
      $1,869,373. This ranch is located near the Mount Hope mine site. The primary reason for the
      purchase of this asset was to acquire the water rights of 1,200 acre feet
      for use by the Mount Hope operations. The Company paid $54,982 for the water
      rights and the remaining amount was used to purchase the land and the grazing
      rights.




In
      November 2006, the Company purchased from Atlas Precious Metals, Inc.
      patented millsite claims for $32,090, water rights for $363,687 and fee land
      in
      Eureka, Nevada for $26,740 with improvements of $5,350. The primary purpose
      of
      this purchase was to acquire the water rights of 1,448 acre feet for the Mount
      Hope operation.




On
      March 2, 2007, the Company purchased the Florence patented lode mining
      claim for $175,000 cash. This claim is adjacent to the Hall Tonopah property
      and
      is included in the total Hall Tonopah Property amount.




On
      March 23, 2007, the Company completed the purchase of certain patented lode
      mining claims referred to as the Liberty Claims on property adjacent to Hall
      Tonopah property for cash of $75,000 and 150,000 shares of restricted common
      stock valued at $420,000.




The
      Company’s mining claims and land purchased prior to 2006 consist in part of (a)
      approximately 107 acres of fee simple land in the Pine Creek area of Shoshone
      County, Idaho, (b) six patented mining claims known as Chicago-London
      group ,
      located
      near the town of Murray in Shoshone County, Idaho, (c) 265 acres of private
      land
      with three unpatented claims in Josephine County, Oregon, known as the Turner
      Gold project.




Capital
      assets are recorded at cost. Depreciation is calculated using the straight-line
      method over three to twenty years. The following is a summary of property,
      equipment, and accumulated depreciation at March 31, 2007 and
      December 31, 2006 (in thousands):







********
            
            
            
            
            
            **Net
                Book**
            
            **Net
                Book**********
            
            
            
            **Accumulated**
            
            **Value
                at**
            
            **Value
                at**********
            
            **Cost**
            
            **Depreciation**
            
            **Mar.
                31, 2007**
            
            **Dec.
                31, 2006**Property
                and Equipment:Field
                Equipment
            
            $
            61
            
            $
            6
            
            $
            55
            
            $
            14Vehicles
            
            
            220
            
            
            44
            
            
            176
            
            
            154Office
                Furniture
            
            
            46
            
            
            10
            
            
            36
            
            
            24Computer
                Equipment
            
            
            248
            
            
            40
            
            
            208
            
            
            185Leasehold
                Improvements
            
            
            28
            
            
            3
            
            
            25
            
            
            19Imp.
                to Fee Land in Eureka
            
            
            5
            
            
            
            
            
            5
            
            
            5Bldg
                & Equip Hall Tonopah
            
            
            32
            
            
            3
            
            
            29
            
            
            30Total
                Property and Equipment
            
            
            640
            
            
            106
            
            
            534
            
            
            431Land
                and Mining Claims:Pine
                Creek Land
            
            
            1
            
            
            —
            
            
            1
            
            
            1Chicago-London
                Group
            
            
            80
            
            
            —
            
            
            80
            
            
            80Liberty
                Claims
            
            
            495
            
            
            —
            
            
            495
            
            
            —Turner
                Gold Land
            
            
            808
            
            
            —
            
            
            808
            
            
            808Hall
                Tonopah Property
            
            
            9,648
            
            
            —
            
            
            9,648
            
            
            5,417Real
              Estate and Water Rights
            
            
            2,292
            
            
            —
            
            
            2,292
            
            
            2,292Total
                Land and Mining Claims
            
            
            13,324
            
            
            —
            
            
            13,324
            
            
            8,598Total
                Capital Assets
            
            $
            13,643
            
            $
            106
            
            $
            13,537
            
            $
            9,029





-12-




**NOTE
      6—RELATED PARTY TRANSACTIONS**




On January 30,
      2007
      the Company entered into an employment agreement with a son of the Company’s
      Chairman for services as Director of Projects and Operations. Under this
      agreement, the Company granted a stock option to purchase 140,000 shares at
      $2.78 per share, the closing price of the Company’s stock on January 30,
      2007.




Additional related
      party transactions are included as part of Note 8.




**NOTE
      7—COMMON STOCK UNITS, COMMON STOCK AND COMMON STOCK
      WARRANTS**




During
      the three months ended March 31, 2007, the Company issued 30,000 shares of
      stock for an option exercised in 2006. Warrants and options in the amount of
      479,053 and 100,000 were exercised for cash in the amount of $524,394 and
      $30,000 respectively, less brokerage fees of $30,592 on the warrants. The
      Company issued 150,000 shares of restricted common stock in the completion
      of
      the Liberty Claims purchase in the amount of $420,000 and issued 75,000 shares
      of restricted common stock in exchange for services valued at $303,750. The
      Company issued 500,000 shares of restricted stock to officers of the Company.
      During the first three months of 2007, shareholders returned to the Company
      38,998 shares of common stock due to a stock option exercise pricing error
      in
      2006. At the end of March, the Company was in the process of a private placement
      offering and had received $14,000,000 in exchange for 4,117,647 common shares.
      This transaction has been classified as common stock issuable on the Company’s
      financial statements.




During
      the year ended December 31, 2006 the Company had two private placements of
      Common Stock Units. In the first private placement, the Company sold 3,021,936
      common stock units for $1.10 per unit. The Company received cash of $3,324,130
      less cash placement agent and finder’s fees of $157,699 and issued 170,550
      Common Stock Units for finder’s fees valued at $1.80 per unit for a total value
      of $307,511. Each unit consisted of one of share of common stock with warrants
      to purchase one-half share of common stock at a price of $1.75 for each whole
      share for a period of two years. In the second private placement, the Company
      sold 15,000,000 common stock units for $2.00 per unit. Each unit consisted
      of
      one of share of common stock with warrants to purchase one-half share of common
      stock at a price of $3.75 for each whole share for a period of five years.
      The
      Company received cash of $30,000,000 less cash placement agent and finder’s fees
      of $2,125,000 and issued 800,000 warrants to purchase shares of common stock
      at
      a price of $3.75 for each whole share for a period of five years for finder’s
      fees valued at $2.17 per warrant for a total value of $1,735,214.




Also
      in
      the year ended December 31, 2006, the Company issued 1,482,147 shares of
      common stock for the cashless exercise of warrants and 1,008,837 shares of
      common stock for the cashless exercise of stock options. Warrants and options
      in
      the amount of 5,838,055 and 340,000 were exercised for cash in the amount of
      $4,476,927 and $60,670 respectively, less combined brokerage fees of $230,684.
      The Company issued 50,000 shares of common stock for services valued at
      $112,566. The Company issued 75,000 warrants to purchase shares of common stock
      at a price of $2.10 for a period of two years in exchange for services valued
      at
      $1.07 per warrant for a total value of $79,946.




During
      2004, the board of directors and shareholders adopted amended and restated
      articles of incorporation, which authorized the Company’s issuance of
      200,000,000 shares of common stock with a $0.001 par value. Prior to 2004,
      the
      Company was authorized to issue 25,000,000 shares of common stock with a par
      value of $0.10.




The
      Company is authorized to issue
      200,000,000 shares of common stock. All shares have equal voting rights, are
      non-assessable and have one vote per share. Voting rights are not cumulative
      and
      therefore, the holders of more than 50% of the common stock could, if they
      choose to do so, elect all of the directors of the Company.




**NOTE
      8—PREFERRED STOCK**




On
      October 28, 2004, shareholders of the Company authorized 10,000,000 shares
      of no par value preferred stock. The authorized b u t
      unissued shares of preferred stock may be issued in designated series from
      time
      to time by one or more resolutions adopted
      by the board of directors. The directors have the power to determine the
      preferences, limitations and relative rights of each series of preferred
      stock.




-13-




On
      November 16, 2004, the board of directors unanimously consented to amend
      the articles of incorporation of the Company. The amendment reclassified 10,000,000 shares of the Company’s no par value preferred stock into 10,000,000
      shares of $0.001 par value Series A preferred stock. At December 31, 2005
      and 2006, no shares of $0.001 par value Series A preferred stock were issued
      or
      outstanding.




**NOTE
      9—STOCK BASED COMPENSATION**




**Stock
      Options**




During
      the three months ending March 31, 2007 the Company issued 1,120,000 options
      within the 2006 Plan with an exercise price ranging from $2.41 to $2.78 with
      vesting at various dates through 2009. These options were granted to members
      of
      the board of directors, officers, employees and consultants of the Company.
      The
      fair value of each option is estimated on the
      issue date using the Black-Scholes Option Price Calculation. The following
      assumptions were made in estimating the fair value: risk free interest of 4.58%
      to 4.94%; volatility of .9142 to .9228; dividend rate of 0%; and expected life
      of 2.0 years. The total value of options awarded during the first three
      months of 2007 was calculated at $1,606,619. Expense was recorded of $1,814,650
      for the options which vested in 2007.




During
      2006, the board of directors and shareholders adopted the 2006 Equity Incentive
      Plan of the Company (the “2006 Plan”). During 2004, the board of directors and
      shareholders adopted the Company 2003 Stock Option Plan
      (the “2003 Plan” and together with the 2006 Plan, the “Plans”). The purpose of
      the Plans is to give the Company greater ability to attract, retain, and
      motivate its officers and key employees. The Plans are intended to provide
      the
      Company with ability to provide incentives more directly linked to the success
      of the Company’s business and increases in shareholder value.




Under
      the
      2006 Plan, the board of directors is authorized to grant incentive stock options
      (“ISOs”) to employees (pursuant to Internal Revenue Code 422), non-statutory
      stock options, restricted stock awards, restricted stock units and stock appreciation rights.
      The aggregate number of shares of common stock that may be issued pursuant
      to
      awards granted under the 2006 Plan will not exceed 3,500,000 plus the number
      of
      shares that are ungranted and those that are subject to reversion under the
      2003
      Plan. As of March 31, 2007, the maximum number of shares available for
      issuance under the 2003 Plan was 360,000 shares.




Shares
      under the 2003 Plan that become eligible for awards under the 2006 Plan may
      not
      be granted again under the 2003 Plan.




During
      the year ended December 31, 2006, the Company granted 1,665,000
      non-qualified stock options outside of the Plans prior to our AMEX
      listing with an exercise price ranging from $2.25 to $3.68 with vesting at
      various dates through 2008. These options were granted to members of the board
      of directors, officers, and employees of the Company. No options or stock grants
      were made under the 2006 Plan during the year ended December 31, 2006. The
      Company issued 60,000 of ISOs within the 2003 Plan with an exercise price of
      $2.10 with vesting at various dates through 2008. The fair value of each option
      is estimated on the issue date using the Black-Scholes Option Price Calculation.
      The following assumptions were made in estimating the fair value: risk free
      interest of 5%; volatility of 101%; dividend rate of 0% and expected life of
      2.4
      years. The total value of options awarded during 2006 was calculated at
      $3,346,975. Expense was recorded of $2,325,500 for the options which vested
      in
      2006.




**Restricted
      Stock**




During
      the three months ending March 31, 2007 the Company issued 500,000 shares of
      restricted stock to officers of the Company that will vest based on
      certain performance based milestones established for each officer **.** The
      total
      value of restricted stock awarded and expensed during the first three months
      of
      2007 was calculated at $1,390,000.




-14-




The
      following is a summary of the Company’s stock option plans as of March 31,
      2007:





**Number
                of**
              **securities
                to be**
              **issued
                upon**
              **exercise
                of**
              **outstanding
                options**
            
            **Weighted
                average**
              **exercise
                price of**
              **outstanding
                options**
            
            **Number
                of**
              **securities**
              **remaining
                available**
              **for
                future issuance**
              **under
                equity**
              **compensation
                plans**Equity
                compensation plans not approved by security holders
            
            
            2,863,333
            
            $
            1.66
            
            
            n/aEquity
                compensation plans approved by security holders:2006
                Plan
            
            
            1,120,000
            
            $
            2.77
            
            
            1,880,000
            (1)2003
                Plan
            
            
            540,000
            
            
            0.59
            
            
            360,000Total
            
            
            4,523,333
            
            $
            1.81
            
            
            2,240,000









(1)
            The
                aggregate number of shares of common stock that may be issued pursuant
                to
                awards granted under the 2006 Equity Incentive Plan will not exceed
                3,500,000 plus the number of shares that are ungranted and those
                that are
                subject to reversion under 2003 Stock Plan. Shares under the 2003
                Plan
                that becomes eligible for awards under the 2006 Plan may not be granted
                again under the 2003 Plan.




The
      following is a summary of stock option activity in 2006 and 2007:





********
            
            **Number
                of Shares**
              **Under
                Options**
            
            **Weighted
                Average**
              **Exercise
                Price**Outstanding
                January 1, 2006
            
            
            4,020,000
            
            $
            0.43Granted
            
            
            1,725,000
            
            
            3.01Exercised
            
            
            1,615,000
            
            
            0.49Forfeited
            
            
            480,000
            
            
            —Expired
            
            
            —
            
            
            —Outstanding
                at December 31, 2006
            
            
            3,650,000
            
            $
            1.48Options
                exercisable at December 31, 2006
            
            
            2,705,000Weighted
                average fair value of options granted during 2006
            
            $
            3.10Outstanding
                January 1, 2007
            
            
            3,650,000
            
            $
            1.48Granted
            
            
            1,120,000
            
            
            2.77Exercised
            
            
            130,000
            
            
            0.26Forfeited
            
            
            116,667Expired
            
            
            —Outstanding
                March 31, 2007
            
            
            4,523,333
            
            $
            1.81Exercisable
                at March 31, 2007
            
            
            3,941,666Weighted
                Average Fair Value Granted During 2007
            
            $
            1.43





**NOTE
      10—INCOME TAXES**




At
      March 31, 2007 and December 31, 2006 the Company had deferred tax
      assets principally arising from the net operating loss carry forwards for income
      tax purposes multiplied by an expected rate of 34%. As management of the Company
      cannot determine that it is more likely than not that the Company will realize
      the benefit of the deferred tax assets, a valuation allowance equal to the deferred tax asset has been established at March 31,
      2007 and December 31, 2006. The significant components of the deferred tax
      asset at March 31, 2007 and December 31, 2006 were as follows (in
      thousands):




-15-





**March 31,**
              **2007**
            
            **December 31,**
              **2006**Net
                operating loss carry forward
            
            $
            11,420
            
            $
            8,425Deferred
                tax asset
            
            $
            3,883
            
            $
            2,865Deferred
                tax asset valuation allowance
            
            $
            (3,883
            )
            $
            (2,865
            )Net
                deferred tax asset
            
            $
            —
            
            $
            —




At
      March 31, 2007 and December 31, 2006 the Company had a net operating
      loss carry forward of approximately $11,420,000 and $8,425,000 respectively, which expire in the years 2022 through 2027. The change
      in the allowance account from December 31, 2006 to March 31, 2007 was
      $1,010,000.




**NOTE
      11—COMMITMENTS AND CONTINGENCIES**




In
      January 2007, the Company entered into a note to purchase a 2007 1 ton
      pickup for $30,451 at an implied interest rate of 7.2% and with a term of three
      years.




In
      December 2006, the Company entered into two five year capital leases for
      office equipment. The Company in December 2006 also entered into a note to
      purchase a 2007 1 ton pickup for $33,571 at an interest rate of 0.9% and with
      a
      term of three years. The table below shows these obligations over the next
      five
      years (in thousands).




**Year******
            
            **Lease**
              **Payment**
            
            **Interest
                on Leases**
            
            **Note**
              **Payment**
            
            **Note**
              **Interest**2007
                (Remaining portion)
            
            $
            8
            
            $
            2
            
            $
            17
            
            $
            22008
            
            
            10
            
            
            2
            
            
            23
            
            
            12009
            
            
            10
            
            
            1
            
            
            23
            
            
            12010
            
            
            10
            
            
            1
            
            
            12011
            
            
            10
            
            
            
            
            
            —
            
            
            —Total
            
            $
            48
            
            $
            6
            
            $
            64
            
            $
            4





The
      Mount
      Hope Lease may be terminated upon the expiration of its 30-year term, earlier
      at
      our election, or upon our material breach and failure to cure such breach.
      If we
      terminate the lease, termination is effective 30 days after receipt by MHMI
      of
      our written notice to terminate the Mount Hope Lease. In order to maintain
      the
      lease, the Company must pay certain deferral fees and advance royalties as
      discussed below.




-16-




**Contractual
      Obligations for Future Payments under Mount Hope Lease**




**Date**
              
              **Fixed
                  Payment**
              
              **Project
                  Financing Received by Date Indicated**
              
              
              **Project
                  Financing Not Received and Deferral Elected**April
                  19, 2007
              
              $
              125October
                  19, 2007
              
              $
              350October
                  19, 2008
              
              
              
              Greater
                  of 3% of Construction
                Capital
                  Cost Estimate or
                $2,500(1)(3)(4)
              
              $
              350October
                  19, 2009
              
              
              
              Greater
                  of 3% of Construction
                Capital
                  Cost Estimate or
                $2,500(1)(3)(4)
              
              $
              350October
                  19, 2010
              
              
              
              $2,500(3)
              
              
              Greater
                  of $2,500 or 3% of
                Construction
                  Capital Cost
                Estimate(3)(4)October
                  19, 2011
              
              
              
              3%
                  of Construction Capital
                Cost
                  Estimate(3)(4)
              
              
              Greater
                  of (a) $2,500 or (b),
                if
                  3% of Construction Capital
                Cost
                  Estimate is greater than
                $2,500
                  then 50% of the
                difference
                  between 3% and
                $2,500(3)(4)October
                  19, 2012
              
              
              
              3%
                  of Construction Capital
                Cost
                  Estimate(3)(4)
              
              
              Greater
                  of (a) $2,500 or (b),
                if
                  3% of Construction Capital
                Cost
                  Estimate is greater than
                $2,500,000,
                  then 50% of the
                difference
                  between 3% and
                $2,500(3)(4)October
                  19, 2013 and each year thereafter(3)
              
              $
              500(3)







(1)
            If
                Project Financing is not received by October 19 of the year shown
                in the
                left column, then the Company may elect to defer this payment and
                proceed
                to make the payments under the column labeled “Project Financing Not
                Received and Deferral Elected.” If prior to making all of the payments
                under the column “Project Financing Not Received and Deferral Elected” the
                Company obtains project financing, the Company would be required
                to make
                this payment and to pay $500,000 each year
                thereafter.




(2)
            In
                addition to the payments above, the Company is required to pay to
                MHMI a
                production royalty after the commencement of Commercial Production
                of the
                greater of (i) $.20/lb of molybdenum metal (or the equivalent thereof
                if
                another Product is sold) sold from the property (not to exceed the
                amount
                of Net Returns we receive for those products) or (ii) 3% of the Net
                Returns, subject to certain adjustments as set forth in the
                lease.




(3)
            To
                be offset from the production royalty described in (3) above. The
                Company
                may recover the aggregate of these payments by retaining 50% of each
                production royalty payment due to
                MHMI.




(4)
            “Construction
                Capital Cost Estimate” means the Company’s projected costs plus 10% to put
                the Mount Hope property into commercial
                production.




On
      January 30, 2007, the Company completed its previously announced
      acquisition of all of the issued and outstanding shares of Equatorial Mining
      North America, Inc., a Delaware corporation (“Equatorial”), from Equatorial
      Mining Limited (“Equatorial Mining Limited”). Equatorial holds a 12 percent net
      smelter royalty interest in the mineral rights of the Company’s Hall Tonopah
      molybdenum-copper property in Nye County, Nevada. The Company now owns the
      Hall-Tonopah property and all associated mineral rights without future royalty
      obligations. As set forth in the Purchase Agreement, the Company paid to
      Equatorial Mining Limited approximately $4.9 million in cash at closing. At
      first commercial production of the property, the Company has agreed to pay
      an
      additional $6.0 million.




-17-




**Environmental
      Considerations:**




The
      Company owns and has owned mineral property interests on certain public and
      private lands in Shoshone County, Idaho. The Company’s mineral property holdings
      include lands contained in mining districts that have been designated as
“Superfund” sites pursuant
      to the Comprehensive Environmental Response, Compensation, and Liability Act.
      The Company and its properties have been and are subject to a variety of federal
      and state regulations governing land use and environmental matters. The Company
      believes it has been in substantial compliance with all such regulations, and
      is
      unaware of any pending action or proceeding action relating to regulatory
      matters that would affect the financial position of the Company. At
      March 31, 2007, the Company had accrued liabilities for compliance with
      environmental regulations of $714,134. The Company’s management acknowledges,
      however, that the possibility exists that the Company may be subject to further
      environmental liabilities associated with its properties in the future, and
      that
      the amount and nature of any liabilities the Company may be held responsible
      for
      is impossible to estimate.




**NOTE
      12—SUBSEQUENT EVENTS**




In
      April
      2007, the Company purchased 1,675 acres of land known as the Bobcat Ranch
      including all water rights and various personal property for
      $3,000,000 plus another $200,500 earnest money which was deposited in escrow
      on
      March 8, 2007 and is recorded in the deposits account as of March 31,
      2007. This ranch is located near the Mount Hope mine site.




On
      March 29, 2007, the Company announced the private placement of units for
      gross proceeds of $25,000,000, with net proceeds to the Company of approximately
      $23.5 million before legal and other related expenses. In the aggregate,
      the Company agreed to issue 7.35 million units at a price of $3.40 per
      unit. Each unit will consist of one share of common stock and a warrant to
      purchase one half of one share of common stock. Each warrant will be exercisable
      at a price of $5.20 per whole share for a period of one year from the date
      of
      closing. As of March 31, 2007 the Company had issued 4,117,647 shares and
      warrants to purchase 2,058,824 shares pursuant to this private placement and
      had
      received $14,000,000 and has been classified as Common stock issuable on our
      financial statements. The Units were offered and sold pursuant to exemptions
      from registration under Regulation S of the Securities Act of 1933, as amended
      (the “Securities Act”), for offers and sales occurring outside the United
      States, and Rule 506 of Regulation D and Section 4(2) of the
      Securities Act, as a transaction not involving any public offering. The Company
      plans to use net proceeds from the financing to continue the permitting and
      development of the Company’s Mount Hope molybdenum project, for drilling and
      evaluation work on the Hall-Tonopah molybdenum project, and for general
      corporate purposes.




On
      May 9,
      2007, the Company purchased water rights known as the Risi Ranch water rights
      for cash of $1,371,429 and 17,000 shares of GMO restricted stock. The Company has deposited $40,000 in escrow on this
      transaction.




We
      completed our Phase 1 drilling program at our Hall-Tonopah project located
      in
      Nye County, Nevada. The drilling program was designed to
      validate and confirm the continuity of mineralization indicated in the previous
      results of drilling by Anaconda and Cyprus. The new drilling has confirmed
      previous drill results for the upper ore body, and has indicated near surface
      high grade mineralization greater than 0.10 % on the east side of the existing
      molybdenum pit.




**ITEM
      2.** **** **MANAGEMENT’S
      DISCUSSION AND ANALYSIS OR PLAN OF OPERATION**




The
      following discussion of our financial condition and plan of operations
      constitutes management’s review of the factors that affected our financial and
      operating performance for the three months ended March 31, 2007 and 2006.
      This discussion should be read in conjunction with the
      financial statements and notes thereto contained elsewhere in this report and
      in
      our Form 10-KSB/A, for the year ended December 31, 2006.




-18-




**Overview**




We
      are in
      the business of the exploration, development and, if warranted, the mining
      of
      properties containing molybdenum, as well as silver, gold, base metals and
      other
      specialty metals. We currently have a 30-year renewable lease for the lands
      related to, possess surface rights for, and
      own patented and unpatented claims to, the Mount Hope Project, a primary
      molybdenum property, located in Eureka County, Nevada. In 2006, we acquired
      a
      second significant molybdenum project, the Hall-Tonopah project, located in
      Nye
      County, Nevada. We also own other properties and mineral rights on which we
      intend to conduct mineral exploration and evaluation for determining economic
      viability for further development. We continue to identify, investigate, and
      acquire other potential properties for future development.




**Mount
      Hope** .
      In
      November 2004, we entered into an option agreement with Mount Hope Mines,
      Inc., or MHMI, pursuant to which we were granted an exclusive one-year
      option to enter into a lease agreement for Mount Hope’s previously drilled
      molybdenum deposit consisting of 13 patented claims and 109 unpatented claims
      in
      Eureka County, Nevada, for a lease period of 30 years. In April 2005, we
      completed a Phase 1 Mine Feasibility Study with respect to Mount Hope and began
      the permitting process for placing into production an open pit molybdenum mine,
      concentrator and processing facility capable of producing 40,000 tonnes (44,093
      tons) of ore per day. In October 2005, we exercised the option and our
      lease agreement with MHMI became effective.




In
      December 2005, we completed a Technical Report which evaluated the
      potential to profitably extract the deeper portion of the Mount Hope deposit
      and
      augmented the mine plan contained in the 2005 Phase I Mine Feasibility
      Study. The augmented mine plan cu rrently
      allows for the mining and processing of 920 million tonnes (1.0 billion
      tons) of molybdenum bearing rock over a mine production life of 50 or more
      years.




We
      are
      currently in the process of developing a new bankable feasibility study with
      respect to the Mount Hope Project, which is scheduled to be completed by July
      2007. The bankable feasibility study will include optimized mine and waste
      rock
      placement plans as well as revised estimates for capital and operating costs
      in
      light of industry wide increases in input commodity, labor and construction
      costs over the last two years. As we are currently focused primarily on the
      development of the Mount Hope
      Project, we do not expect to generate revenues from operations before production
      of molybdenum begins at the Mount Hope Project.




**Hall
      Tonopah** .
      In
      March 2006, we purchased from High Desert Winds LLC it’s approximately ten
      square mile property in Nye County, Nevada, including water rights, mineral
      and
      surface rights, buildings and certain equipment. The property includes the
      former Hall molybdenum and copper deposit which was mined by open pit methods
      between 1982 and 1985 by the Anaconda Minerals Company and between 1988 and
      1991
      by Cyprus Metals Company for molybdenum. Equatorial Tonopah, Inc. mined copper
      from 1999 to 2000 on this property. Much of the deposit was drilled but not
      developed or mined.




In
      January 2007, we purchased 100% of the Stock in Equatorial Mining North
      America, Inc. and its two subsidiaries, which owned a 12% net smelter returns
      royalty on the Hall-Tonopah property, from Equatorial Mining Pty.
      Limited.




In
      January 2007, we also began a drilling program at Hall-Tonopah on the
      molybdenum mineralization of the existing molybdenum pit
      developed by Cyprus and an east extension mineralized area near the top of
      the
      east side of the existing pit. $2.2 million was budgeted for exploratory
      and mineralization confirmation drilling. This program includes 13 RC drill
      holes and six diamond drill holes. We expect completion and results of this
      drilling program in the second quarter of 2007. Assay data will be confirmed
      through our geological quality control program and then incorporated into a
      mineralization model.




We
      also
      currently own several other properties located in the western United States.
      These properties include additional advanced-stage molybdenum deposits as well
      as copper and gold deposits.




-19-




**Critical
      Accounting Estimates**




**Estimates**




The
      process of preparing financial statements in conformity with US GAAP requires the use of estimates
      and assumptions regarding certain types of assets, liabilities, revenues, and
      expenses. Such estimates primarily relate to unsettled transactions and events
      as of the date of the financial statements. Accordingly, upon settlement, actual
      results may differ from estimated amounts.




**Basic
      and Diluted Net Loss Per Share**




Net
      loss
      per share was computed by
      dividing the net loss by the weighted average number of shares outstanding
      during the period. The weighted average number of shares was calculated by
      taking the number of shares outstanding and weighting them by the amount of
      time
      that they were outstanding.




**Mineral
      Exploration and Development Costs**




All
      exploration expenditures are expensed as incurred. Significant property
      acquisition payments for active exploration properties are capitalized. If
      no
      mineable orebody is discovered, previously capitalized costs are expensed in
      the
      period the property is
      abandoned. Expenditures to develop new mines, to define further mineralization
      in existing mineral deposits, and, in the future, to expand the capacity of
      operating mines, will be capitalized and amortized on a units of production
      basis over the economically demonstrated proven and probable
      reserves.




Should
      a
      property be abandoned, its capitalized costs are charged to operations. We
      charge to operations the allocable portion of capitalized costs attributable to properties sold. Capitalized costs are allocated to properties
      sold based on the proportion of claims sold to the claims remaining within
      the
      project area.




**Mining
      Claims and Land**




Costs
      of
      acquiring and developing mineral properties are capitalized as appropriate
      by
      project area. Exploration and related costs and costs to maintain mineral rights
      and leases are expensed as incurred. When a property reaches the production
      stage, the related
      capitalized costs are amortized using the units-of-production method on the
      basis of periodic estimates of ore reserves. Mineral properties are periodically
      assessed for impairment of value, and any subsequent losses are charged to
      operations at the time of impairment. If a property is abandoned or sold, its
      capitalized costs are charged to operations.




**Provision
      for Taxes**




Income
      taxes are provided based upon the liability method of accounting pursuant to
      the
      Statement of Financial Accounting Standards No. 109, “Accounting for Income
      Taxes” (“SFAS No. 109”). Under this approach, deferred income taxes are
      recorded to reflect the tax
      consequences in future years of differences between the tax basis of assets
      and
      liabilities and their financial reporting amounts at each year-end. A valuation
      allowance is recorded against the deferred tax asset if management does not
      believe we have met the “more likely than not” standard imposed by SFAS
      No. 109 to allow recognition of such an asset.




**Property
      and Equipment**




Property
      and equipment are being depreciated over useful lives of three to seven years
      using straight-line depreciation.




**Share-Based
      Compensation**




We
      account for stock-based compensation in accordance with SFAS No. 123(R), *Share-Based
      Payment* .
      Under
      the fair value recognition provisions of this statement, share-based
      compensation cost is measured at the grant date based on the value of the award
      and is recognized as expense over the vesting period. Determining the fair
      value
      of share-based awards at the grant date requires judgment, including estimating
      expected dividends. In addition, judgment is also required in estimating the
      amount of share-based awards that are expected to be forfeited. If actual
      results differ significantly from these estimates, stock-based compensation
      expense and our results of operations could be materially impacted.




-20-




**Results
      of Operations for the Three Months Ended March 31,
      2007**


**Compared
      to Three Months Ended March 31, 2006**




We
      are
      classified as an exploration stage company with no producing mines and,
      accordingly, we do not produce income. Our net loss for the three months ended
      March 31, 2007 was $(9,073,000) as compared to a net loss of $(2,188,000)
      for the three months ended March 31, 2006. The increase of $6,885,000 is
      attributable primarily to increased exploration and documentation studies
      required to complete our Environmental Impact Statement and our bankable
      feasibility study at Mount Hope significantly contributed to additional
      operating expenses. We also incurred higher corporate and administrative costs
      in a number of areas consistent with our substantially increased activity
      levels. These costs include employee compensation expenses, expansion of
      corporate personnel and associated costs, marketing and investor relations
      expenses, general legal expenses, and accounting and compliance issues
      reflecting the greater complexity of our operations.




Exploration
      and development expenditures of $3,842,000 were incurred at the Mount Hope
      Project and the Hall Tonopah Project during the three months
      ended March 31, 2007 as exploration and development activity proceeded at a
      very aggressive pace. This is consistent with our stated objective to complete
      our Mount Hope Project plans and to focus on the permitting required to bring
      the project to commercial production. All of the expenditures during the three
      months ended March 31, 2007 were related to this objective, and associated
      feasibility study costs represent the majority of expenditures at the Mount
      Hope
      Project.




**Liquidity
      and Capital Resources**




We
      have
      limited capital resources and thus have to rely upon the sale of equity and
      debt
      securities for the cash required for exploration and
      development purposes, for acquisitions and to fund our administration. Since
      we
      do not expect to generate any revenues in the near future, we must continue
      to
      rely upon the sale of our equity and debt securities to raise capital. There
      can
      be no assurance that financing, whether debt or equity, will always be available
      to us in the amount required at any particular time or for any period or, if
      available, that it can be obtained on terms satisfactory to us.




Our
      cash
      balance at March 31 ,
      2007
      was $24,023,000 compared to $25,861,000 at March 31, 2006. Total assets at
      March 31, 2007 were $38,712,000 compared to $30,907,000 at March 31,
      2006. The change in these balances reflects the purchase of property and water
      rights for our Mount Hope project and the purchase of Equatorial Mining North
      America to secure the royalty at our Hall Tonopah project offset by proceeds
      received in March, 2007, from a private placement of equity. Liabilities at
      March 31, 2007 were $3,112,000 compared to $305,000 at March 31, 2006.
      This increase in payables reflects our increased accounts payable due to
      increased drilling expenses and expenses related to the completion of our
      bankable feasibility study.




On
      January 10, 2006, we concluded a private placement of 3,441,936 units at a
      price of $1.10 per unit. Each unit consisted of one share of our common stock
      and one-half of one warrant to purchase one share of our common stock. Each
      whole warrant is
      exercisable for 24 months from the date of issuance and carries an exercise
      price of $1.75 per whole share. The gross proceeds of this offering were
      $3,786,000 and, after payment of sales commissions and finder’s fees, we
      received net proceeds of $3,621,000.




On
      February 15, 2006, we concluded a private placement of 15,000,000 units at
      a price of $2.00 per unit. Each unit consisted of one share of our common stock
      and a warrant to purchase one-half of a share of our common stock. Each whole
      warrant is exercisable for five years from the date of issuance and carries
      an
      exercise price of $3.75 per whole share. The gross proceeds of this
      offering were $30,000,000 and, after payment of cash sales commissions and
      finder’s fees, we received net proceeds of $27,875,000. In the aggregate, we
      issued 15 million shares of common stock and warrants to purchase an
      additional 8.3 million shares, including warrants issued as compensation to
      the placement agent.




-21-




In
      January 2007, we entered into a note to purchase a 2007 1 ton pickup for
      $34,206 at an implied interest rate of 7.2% and with a term of three
      years.




In
      December 2006, we entered into two five year capital leases for office
      equipment. In December 2006 we also entered into a note to purchase a 2007
      1 ton pickup for $34,000 at an interest rate of 0.9% and with a term of three
      years. The table below shows these obligations over the next five years (in
      thousands).







**Year******
            
            **Lease**
              **Payment**
            
            **Interest
                on Leases**
            
            **Note**
              **Payment**
            
            **Note**
              **Interest**2007
                (Remaining portion)
            
            
            8
            
            
            2
            
            
            17
            
            
            22008
            
            
            10
            
            
            2
            
            
            23
            
            
            12009
            
            
            10
            
            
            1
            
            
            23
            
            
            12010
            
            
            10
            
            
            1
            
            
            1
            
            
            —2011
            
            
            10
            
            
            —
            
            
            —
            
            
            —Total
            
            $
            48
            
            $
            6
            
            $
            64
            
            $
            4





Set
      forth
      below is a schedule of our contractual obligations for payments under the Mount
      Hope lease agreement (in thousands):


**Date**
              
              **Fixed**
                **Payment**
              
              **Project
                  Financing**
                **Received
                  by Date**
                **Indicated**
              
              **Project
                  Financing Not**
                **Received
                  and Deferral**
                **Elected**April
                  19, 2007
              
              $
              125October
                  19, 2007
              
              $
              350October
                  19, 2008
              
              
              
              Greater
                  of 3% of Construction Capital Cost Estimate or $2,500 (1)(3)(4)
              
              $350October
                  19, 2009
              
              
              
              Greater
                  of 3% of Construction Capital Cost Estimate or $2,500 (1)(3)(4)
              
              $350October
                  19, 2010
              
              
              
              $2,500
                  (3)
              
              Greater
                  of $2,500 or 3% of Construction Capital Cost Estimate (3)(4)October
                  19, 2011
              
              
              
              3%
                  of Construction Capital Cost Estimate (3)(4)
              
              Greater
                  of (a) $2,500 or (b) if 3% of Construction Capital Cost Estimate
                  is
                  greater than $2,500, then 50% of the difference between 3% and
                  2,500,000
                  (3)(4)October
                  19, 2012
              
              
              
              3%
                  of Construction Capital Cost Estimate (3)(4)
              
              Greater
                  of (a) $2,500 or (b) if 3% of Construction Capital Cost Estimate
                  is
                  greater than $2,500, then 50% of the difference between 3% and
                  2,500
                  (3)(4)October
                  19, 2013 and each year thereafter (3)
              
              $
              500
                  (3
              )









(1)
            If
                Project Financing is not received by October 19, 2008, we may elect
                to
                defer this payment and proceed to make the payments under the column
                labeled “Project Financing Not Received and Deferral Elected.” If prior to
                making all of the payments under the column “Project Financing Not
                Received and Deferral Elected” we obtain project financing, we would be
                required to make this payment and to pay $500,000 each year
                thereafter.




-22-




(2)
            In
                addition to the payments above, we are required to pay to MHMI a
                production royalty after the commencement of Commercial Production
                of the
                greater of (i) $.20/lb of molybdenum metal (or the equivalent thereof
                if
                another Product is sold) sold from the property (not to exceed the
                amount
                of Net Returns we receive for those products) or (ii) 3% of the Net
                Returns, subject to certain adjustments as set forth in the
                lease.




(3)
            To
                be offset from the production royalty described in (3) above. We
                may
                recover the aggregate of these payments by retaining 50% of each
                production royalty payment due to
                MHMI.




(4)
            “Construction
                Capital Cost Estimate” means our projected costs plus 10% to put the Mount
                Hope property into commercial
                production.




In
      addition, in connection with our purchase of the Hall Tonopah Property, we
      agreed to make a deferred payment of up to an additional $1,000,000 in purchase price which is payable, if at all, on or before
      March 17, 2008 depending on the outcome of activities at the
      property.




**Changes
      in Accounting Policies**




We
      did
      not change our accounting policies during the three months ended March 31,
      2007.




**Special
      Note Regarding Forward-Looking Statements**




Certain
      statements in this report may constitute forward-looking statements, which
      involve known and unknown risks, uncertainties and other factors ,
      which
      may cause actual results, performance or achievements of our company, the Mount
      Hope project, Hall Tonopah project and our other projects, or industry results,
      to be materially different from any future results, performance or achievements
      expressed or implied by such forward-looking statements. We use the words “may,”
“will,” “believe,” “expect,” “anticipate,” “intend,” “future,” “plan,”
“estimate,” “potential” and other similar expressions to identify
      forward-looking statements. Forward-looking statements may include, but are
      not
      limited to, statements with respect to the following:




·
            the
                timing and possible outcome of pending regulatory and permitting
                matters;


·
            the
                parameters and design of our planned initial mining facilities at
                the
                Mount Hope Project;


·
            future
                financial or operating performances of our company and our
                projects;


·
            the
                estimation and realization of mineralization, if
                any;


·
            the
                timing of exploration, development and production activities and
                estimated
                future production, if any;


·
            estimates
                related to costs of production, capital, operating and exploration
                expenditures;


·
            requirements
                for additional capital;


·
            government
                regulation of mining operations, environmental conditions and risks,
                reclamation and rehabilitation
                expenses;


·
            title
                disputes or claims;


·
            limitations
                of insurance coverage; and


·
            the
                future price of molybdenum, gold, silver or other
                metals.




You
      should not place undue reliance on these forward-looking statements, which
      speak
      only as of the date of this report. These forward-looking statements are based
      on our current expectations and are subject to a number of risks and uncertainties ,
      including those set forth below. Although we believe that the expectations
      reflected in these forward-looking statements are reasonable, our actual results
      could differ materially from those expressed in these forward-looking
      statements, and any events anticipated in the forward-looking statements may
      not
      actually occur. Except as required by law, we undertake no duty to update any
      forward-looking statements after the date of this report to conform those
      statements to actual results or to reflect the occurrence of unanticipated
      events. We qualify all forward-looking statements contained in this report
      by
      the foregoing cautionary statements.




**ITEM
        3. CONTROLS AND PROCEDURES**
  An
        evaluation was performed under the supervision and with the participation
        of our
        management, including our principal executive officer and principal financial
        officer, of the effectiveness of our disclosure controls and procedures (as
        defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act
        of
        1934) as of the end of the period covered by this Quarterly Report on Form
        10-QSB/A. Based on the foregoing and in light of the material weakness due
        to
        the lack of effective controls over the valuation and accuracy of stock
        compensation expense and valuation of warrants to purchase common stock (as
        previously disclosed in our Annual Report on Form 10-KSB/A for the year ended
        December 31, 2006), our principal executive officer and principal financial
        officer have concluded that our disclosure controls and procedures are not
        effective, as of the end of the period covered by this report, to ensure
        that
        information required to be disclosed by us in reports that we file or submit
        under the Exchange Act is recorded, processed, summarized and reported within
        the time periods specified in the Securities and Exchange Commission rules
        and
        forms and such information is accumulated and communicated to our management,
        including our principal executive officer and principal financial officer,
        to
        allow timely decisions regarding required disclosure.
 
 As
        more
        fully described in our Annual Report on Form 10-KSB/A for the year ended
        December 31, 2006, the Company has implemented a number of internal control
        procedures to remediate the material weakness discussed above. As a result
        of
        these internal control improvements, we believe the material weakness that
        existed at March 31, 2007 has been remediated as of the date of this
        filing.
 
 The
        Company intends to continually review and evaluate the design and effectiveness
        of our disclosure controls and procedures as well as our internal control
        over
        financial reporting to improve our controls and procedures over time as the
        Company’s business transitions into mining operations and to correct any
        deficiencies that we may discover in the future. The Company anticipates
        that
        additional changes to our internal control and procedures will be made as
        we
        takes steps to become compliant with Section 404 of the Sarbanes-Oxley Act
        of 2002, which we anticipate will apply for our annual report for the year
        ended
        December 31, 2007.


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**PART
      II - OTHER INFORMATION**




**ITEM
      6. EXHIBITS**




**Exhibit**
              **Number**
            
            **Description
                of Exhibit******31.1
            
            Certification
                of CEO pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange
                Act31.2
            
            Certification
                of CFO pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act32.1
            
            Certification
                of CEO pursuant to 18 U.S.C. Section 135032.2
            
            Certification
                of CFO pursuant to 18 U.S.C. Section 1350




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**SIGNATURES**




In
      accordance with the requirements of the Exchange Act, the Registrant has duly
      caused this report to be signed on its behalf by the undersigned, thereunto
      duly
      authorized.




Dated: November 15, 2007.**GENERAL
              MOLY, INC.**By:
            /s/
                Bruce D.
                HansenName:
            Bruce D. HansenTitle:
            Chief
              Executive Officer(Principal Executive
              Officer)




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