Creston Moly Corp.
TSX VENTURE : CMS

Creston Moly Corp.

March 16, 2010 08:00 ET

Creston Moly Confirms Increased Resource and Grade Potential Beyond Pit Limits: Drilling Continues to Intersect Significant Molybdenum Values at El Creston

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 16, 2009) - Creston Moly Corp. ("Creston" or the "Company") (TSX VENTURE:CMS) is pleased to announce the results of Holes EC10-71, 72 and 74 from its initial 5,000 metre drill program being completed at its El Creston molybdenum project located in Sonora, Mexico.

Highlights include intercepts of:

  • 195.60 metres @ 0.086% molybdenum including 42.70 metres @ 0.153% molybdenum and 48.80 metres @ 0.104% molybdenum (Drill Hole EC10-72)
  • 102.25 metres @ 0.069% molybdenum including 36.60 metres @ 0.076% molybdenum (Drill Hole EC10-71)

"We continue to be encouraged by the drilling results from our optimization program underway on the El Creston Deposit," said Bruce McLeod, President & CEO. "We again have encountered high grade intercepts within the previously defined pit limits where modeling had shown either waste or low grade reserves to occur. This should increase the resource and enhance the viability of the project."

Phase One 2010 Program

The Company is well advanced on its 5,000 metre drilling program with 16 holes (3,696 metres) now completed. Drill results are being routinely released as the assays become available. The drilling program is part of a $4 million optimization program on the El Creston Deposit(s) designed to advance the project towards completion of a feasibility study. In addition to drilling, geophysical surveying and other ground work have or are presently being conducted on the property. The purpose of the 2010 drilling is to:

  • Expand the El Creston Main Zone to the north where all of the northernmost holes located in the resource outline intersected significant molybdenum values along a 350 metre segment 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.
  • Undertake testing of the Red Hill Zone with the purpose of defining a zone that may be incorporated into an expanded El Creston Open Pit.
  • Complete drill testing for structural, geotechnical, metallurgical and hydrological information.

To date, most of the drilling has been completed within and adjacent to the northern resource boundary.

Drilling 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/2010-03-12_Creston_Drill_Holes_2010_Location_PP.pdf

Drill Hole EC10-71, an angled hole, was drilled to test the possible extension of the Creston Zone to the immediate north of the resource limit. The hole is 1ocated 112 metres north of Hole A-30 (88 metres averaging 0.098% molybdenum). Hole EC10-71 intersected a 102.25 metre section averaging 0.069% molybdenum in an area that in the mining plan was considered to be waste with approximately 50% of the intersection occurring below the proposed open pit. Within the intersection there is a higher grade section averaging 0.076% molybdenum over 36.6 metres that is near surface.

Drill Hole EC10-72, a vertical hole, was drilled to test the zone approximately 55 metres to the west of Hole EC08-32 (160.55 metres averaging 0.106% molybdenum) and 100 metres north of Hole A-24 (216 metres averaging 0.070% molybdenum). The hole intersected a 195.60 metre section averaging 0.086% molybdenum within which there are two higher grade intersections of 42.70 and 48.80 metres respectively averaging 0.153 and 0.104% molybdenum. Approximately 50% of the section occurs below the proposed open pit limits in an area previously interpreted to contain low to moderate grade mineralization. This hole, when combined with others in the area, shows above resource cut-off grade molybdenum to occur over a 400 metre length within an area amenable for open pit development.

Drill Hole EC10-74, a vertical hole, tested an area located 50 metres north of the resource outline. The hole intersected a series of anomalous low grade intersections including 9.15 and 12.2 metre intercepts averaging 0.040 and 0.041% molybdenum. These intersections occur to the north of the proposed open pit.

Table 1 – El Creston Drill Results

Hole Azimuth Dip Length (metres) From (metres) To (metres) Interval (metres) Mo (%) Comments
EC10-71 0 -70 282.10 0.00 45.75 45.75 0.111 Oxide
        45.75 148.00 102.25 0.069 Sulphide
      incl. 54.90 91.50 36.60 0.076 Sulphide
        164.70 167.75 3.05 0.038 Sulphide
        176.95 189.10 12.15 0.052 Sulphide
                 
EC10-72 0 -90 390.5 0.40 66.75 66.35 0.072 Oxide
        66.35 261.95 195.60 0.086 Sulphide
      incl. 69.80 112.50 42.70 0.153 Sulphide
      and 161.30 210.10 48.80 0.104 Sulphide
        285.30 289.40 4.10 0.062 Sulphide
                 
EC10-74 0 -90 219.6 21.35 27.45 6.10 0.041 Oxide
        73.20 85.40 12.20 0.041 Sulphide
        97.50 106.75 9.15 0.040 Sulphide
        115.90 118.95 3.05 0.043 Sulphide
        125.05 131.15 6.10 0.055 Sulphide
        155.55 158.60 3.05 0.167 Sulphide

El Creston Deposit

The 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 calculated 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 it was determined that the Creston Project 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
    604-687-7545 or Toll Free: 1-888-338-2200
    or
    Creston Moly Corp.
    Chris Curran
    Investor Relations
    604-687-7545 or Toll Free: 1-888-338-2200
    604-689-5041 (FAX)
    or
    Creston Moly Corp.
    Ken MacDonald
    604-694-0005
    www.crestonmoly.com