Creston Moly Corp.
TSX VENTURE : CMS

Creston Moly Corp.

April 29, 2010 08:00 ET

Creston Moly Announces Additional Results for Holes Drilled North of the Resource Limits

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 29, 2010) - Creston Moly Corp. ("Creston" or the "Company") (TSX VENTURE:CMS) today announced the results for Holes EC10-73 and 75 to 79 and geotechnical Hole EC10 GT-1 from its initial 5,000 metre program being completed at its El Creston molybdenum deposit located in Sonora, Mexico. 

Highlights include near surface intercepts of:

  • 103.70 metres @ 0.063% molybdenum including a 21.35 metre section @ 0.173% molybdenum (Drill Hole EC10-77)
  • 58 metres @ 0.051% molybdenum including a 30.5 metre section @ 0.062% molybdenum (Drill Hole EC10-79)

"The Phase One Drilling program has now been completed, with assay results still pending from six drill holes. Results released to date have demonstrated that the El Creston molybdenum deposit is growing, and we have yet to test the blue sky potential of the Alejandra and Red Hill zones," said Bruce McLeod, President & CEO. "We are in the final planning stages for the second phase program which will include additional drilling, optimization of the mine plan and further metallurgical studies."

Phase One 2010 Drilling

The Company has recently completed its Phase One 5,000 metre drill program, which resulted in the drilling of 20 exploratory and three geotechnical holes. The drill program is part of a $4 million program being completed at the El Creston molybdenum deposit designed to advance the project towards completion of a feasibility study. In addition to the completion of the drilling, the Company has completed a geophysical survey and other ground work, the results of which will be released once they have been compiled. The drill results are being routinely released as the assays become available.

The purpose of the Phase One drilling was to:

  • Test the north end of the El Creston Main Zone where a review of the drill sections shows all of the northernmost holes located along a 350 metre segment of the resource outline intersected significant molybdenum values including sections of 186.05 and 160.55 metres respectively assaying 0.109% and 0.106% molybdenum. 
  • Complete in-fill drilling in areas of limited drilling within the El Creston Main Zone Resource.
  • Complete drill testing for structural and hydrological information.
  • Originally the Phase One drilling was to undertake limited testing of the Red Hill Zone with the purpose of defining a zone that may be incorporated into the proposed El Creston Open Pit, this drilling has been deferred to a subsequent program.

Drill Results

Maps are available at www.crestonmoly.com or click the link below to view the map showing the drill hole locations and the relevant sections.

http://www.crestonmoly.com/i/maps/2010-04-28_News_Release.pdf

All of the Holes described herein are located to the north of or in close proximity to the northern limit of the Creston Main Resource boundary. 

Drill Hole EC10-73 tested the Main Zone; 125 metres north of the resource limits and 100 metres north of Hole EC10-70 (222.65 metres @ 0.074 % molybdenum including 122 metres averaging 0.100% molybdenum). Hole 73 intersected several narrow intersections averaging greater than 0.037% molybdenum equivalent (the proposed mine cut-off grade). Results include two near surface 9.15 metre long sections averaging 0.038 and 0.039% molybdenum. Both sections are hosted by Creston Granite rocks similar to those intersected in Hole EC10-70. 

Drill Hole EC10-75 was drilled outside the Main Zone resource limits, located 125 metres northwest of Hole EC10-72 (195.60 metres @ 0.086% molybdenum). Hole 75 initially intersected Creston Granite rocks similar to those in hole 10-72 before passing into porphyrytic granite. A near surface 9.15 metre section averaging 0.025% molybdenum with 0.13% copper was intersected within the oxide zone. At depth weakly mineralized sections were intersected.

Drill Hole EC10-76 drilled outside of the resource limit, 150 metres north of EC10-71 (102.25 metres averaging 0.069% molybdenum), intersected both Creston Granite and basement rocks. Results are generally low with the best intersection being a 3.05 metre section averaging 0.052% molybdenum.

Drill Holes EC10-77 and 78 were drilled in the northwest corner of the resource approximately 50 metres northwest of Hole 95-9 (96 metres @ 0.062% molybdenum including a 24 metre section averaging 0.105% molybdenum). Both holes intersected above cut-off grade mineralization in an area where no resource blocks had been identified due to a lack of drilling. Hole 77, an angle hole drilled due south, intersected near surface intersections of 12.20 and 103.70 metres respectively averaging 0.083 and 0.063% molybdenum. Within the later intercept there is a 21.35 metre section averaging 0.173% molybdenum, a 24.4 metre section averaging 0.07% copper and a 92.35 metre section averaging 2.43 ppm silver. Hole 78, drilled due north, intersected lithology and mineralization similar to that in Hole 77. Results, albeit at lower grades than Hole 77, include two, near surface, 21.35 metre sections averaging 0.050 and 0.040% molybdenum. Coincidental with the two zones is a 61 metre section averaging 2.34 ppm silver. 

Drill Holes EC10-79 and EC10-GT-1 were respectively drilled 100 and 140 metres east of Hole EC10-68 (134 metres @ 0.040% molybdenum including a 48.80 metre section @ 0.055% molybdenum). Hole EC10-79, was drilled due north to test the continuity of the zone outside of the mineral resource and Geotechnical Hole EC10-GT-1 was drilled to complete structural studies below the proposed open pit. Both holes intersected above cut-off grade mineralization outside of the proposed open pit. Hole 79 encountered several faults and had to be abandoned at a depth of 82.35 metres but intersected molybdenum throughout its length. Results include a 57.95 metre section averaging 0.051% molybdenum in which there is a 30.5 metre section averaging 0.062% molybdenum. Hole EC10-GT-1, drilled to the southwest, intersected two sections of molybdenum mineralization. The upper intercept averaged 0.048% molybdenum over 33.6 metres. Within this section there is a 12.2 metre section averaging 0.10% copper. The second intercept averaged 0.043% molybdenum over 74.8 metres and includes a 36.6 metre section averaging 0.056% molybdenum. To date there are no holes to the north or to the east of Holes EC10- 79 and EC10-GT-1.

The Phase One drill program has tested a 600 metre segment of the northern resource boundary within and adjacent to the proposed open pit in order to determine whether additional above cut-off grade resources could be identified. The program has been successful in outlining areas for possible expansion with more drilling being required to determine the ultimate size of the Main Deposit. 

Table 2 El Creston Drill Results


Hole

Az.

Dip
Lgth (m) From (m) To (m) Int (m) Mo (%) From (m) To (m) Int (m)
Other
EC10-73 0 -90 250.05 18.30 27.45 9.15 0.038 61.00 90.50 30.50 0.07% Cu
        36.60 45.75 9.15 0.039        
        152.50 155.55 3.05 0.045        
        161.65 170.80 9.15 0.038        
        186.05 189.10 3.05 0.052        
                       
EC10-75 0 -90 207.5 24.05 33.20 9.15 0.025 24.05 33.20 9.15 0.13% Cu
        199.90 207.50 7.60 0.022        
                       
EC10-76 0 -70 170.8 33.55 36.60 3.05 0.052        
                       
EC10-77 180 -70 186.05 33.55 45.75 12.20 0.083 125.05 149.45 24.40 0.07% Cu
        64.05 167.75 103.70 0.063 88.45 170.80 92.35 2.43 ppm Ag
      inc 140.30 161.65 21.35 0.173 125.05 158.60 23.55 6.87 ppm Ag
                       
EC10-78 0 -65 180.2 11.40 32.75 21.35 0.050 57.15 118.15 61.00 2.34 ppm Ag
        54.10 109.00 54.90 0.035 57.15 72.40 15.25 0.05% Cu
      inc 72.40 93.75 21.35 0.040        
        121.20 133.40 12.20 0.031        
                       
EC10-79 0 -60 82.35 12.20 70.15 57.95 0.051        
      inc 39.65 70.15 30.50 0.062        
                       
EC10-GT-1 220 -60 250.1 21.35 54.90 33.55 0.048 33.55 45.75 12.20 0.10% Cu
        122.00 196.80 74.80 0.043        
        122.00 158.60 36.60 0.056        
        228.75 234.80 6.05 0.056        

El Creston Molybdenum Deposit

The El Creston molybdenum deposit contains the following Mineral Reserves and in-pit inferred resources at a 0.037% Mo equivalent* cut-off grade:


Category
Tonnes
(000's)
Mo
(%)
lbs Mo
(000's)
Cu
(%)
lbs Cu
(000's)
           
   Proven Reserves 44,736 0.079 78,024 0.053 52,217
   Probable Reserves 101,968 0.076 171,924 0.047 106,614
           
  Proven and probable reserves 146,705 0.077 249,948 0.049 158,831
           
   In-pit Inferred Resources 8,718 0.065 12,464 0.063 12,158
  • Mo-equivalent cut-off: Mo%+(Cu/7.5). 

The reserves were completed by Mine Development Associates, Reno Nevada using block modeling of drill core assays.

In 2009 a NI 43-101 compliant Pre-Feasibility Study ("PFS"), was issued by M3 Engineering & Technology Corporation of Tucson, Arizona ("M3"). Using a base case scenario of $15/lb Mo and $1.75/lb Cu M3 determined that the El Creston molybdenum deposit has an after-tax Net Present Value ("NPV") at an 8% discount rate of USD$306.02 million and an Internal Rate of Return ("IRR") of 20.2%.

Sampling and QA/QC

All of the samples collected were delivered by Company personnel to ALS-Chemex's prep lab in Hermosillo, Mexico where they were logged into the computer tracking system, crushed, split and a pulp sample prepared. The pulp sample was sent to ALS Chemex's laboratory in Vancouver, B.C for analysis by Inductively Coupled Plasma. ALS-Chemex is an ISO/17025 accredited laboratory. ALS-Chemex monitors quality control through the introduction of blanks, standards and duplicate sampling. In addition, Creston personnel routinely insert blanks and standards into the sample stream. Dave Visagie, P. Geo., a Qualified Person as defined by NI 43-101 is responsible for the technical information contained in this release.

On Behalf of the Board of Directors

CRESTON MOLY CORP.

D. Bruce McLeod, President & CEO

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and Creston does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect Creston management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Creston to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in Creston's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although Creston has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Creston Moly Corp.
    Mr. Bruce McLeod
    President & CEO
    604-694-0005 or 604-687-7545
    or
    Creston Moly Corp.
    Chris Curran
    Investor Relations
    604-687-7545 or 888-338-2200 (TOLL FREE)
    or
    Creston Moly Corp.
    Ken MacDonald
    604-694-0005
    604-689-5041 (FAX)
    www.crestonmoly.com