Creston Moly Corp.
TSX VENTURE : CMS

Creston Moly Corp.

October 15, 2009 08:30 ET

Creston Moly Corp.: Data Collection Complete, Drill Program to Start at El Creston Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2009) - Creston Moly Corp. ("Creston") (CMS: TSX.V) is pleased to provide an update on Creston Moly Corp. and its 100% owned El Creston Molybdenum Project located in the State of Sonora, Mexico.

Bruce McLeod, President and CEO of the Company said; "The merger between Creston and Tenajon is now complete and the teams have been fully integrated. During the transition period we have developed our path for moving forward and will be proceeding on a dual track approach of adding value to the assets of the Company. We will be advancing the El Creston project toward Final Bankable Feasibility while at the same time focussing on optimizing the project to enhance the economics."

The pre-feasibility study conducted by M3 Engineering & Technology Corporation (M3) and delivered to Creston in February 2009 stated that opportunities exist to enhance the project's economics, including:

  • Increasing the overall resource
  • Refined engineering during the feasibility study
  • Inclusion of revenue from the recovery of silver

Increasing the overall resource

A work program has commenced that includes detailed mapping and surface sampling of seven areas occurring within a 5.5km by 1.2km trend identified by geochemistry and Aster satellite imaging. In addition, a 3D inversion I.P. survey will be completed over selected targets and follow-up diamond drilling will commence in early 2010. A compilation of data has shown that the El Creston Deposit is open to the north and west for expansion, and that the drilling completed on the outer boundaries of the resource in these areas is largely of a higher grade than the resource used in the pre-feasibility. This area alone could add substantial tonnage to the overall reserve and increase the life-of-mine which would favourably impact the economics of the project.

Refined engineering during the feasibility study

The pre-feasibility study was conducted during a period of extremely high input prices. Increased equipment and manpower availability, along with lower energy costs should have a positive impact on the economics of the project. The pre-feasibility study is currently being reviewed to discover areas to reduce the initial capital investment required and to optimize mine through-put. In addition metallurgical, geotechnical, and environmental testing are to be carried out.

Potential Byproduct Revenue

Multi-element assays will be conducted on samples collected during the 2008 drilling program. Silver and tungsten are known to occur at El Creston but have not been systematically assayed across the deposit and if they occur in economic quantities could provide substantial additional revenue. Rhenium occurs on a neighbouring property but the Creston core samples have not been assayed for that element. Rhenium trades at approximately US$2,700 per lb and if it occurs at the Creston deposit it could provide an additional source of revenue.

About Creston Moly Corp.

Creston Moly Corp. is focused on the development of the Creston Molybdenum Deposit located 145 kilometres north-east of Hermosillo, Sonora State, Mexico, near the village of Opodepe.

In accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, the Company has delineated proven and probable reserves and measured, indicated and inferred mineral resources.

The Creston Molybdenum Deposit's reserves and resources, as determined in accordance with National Instrument 43-101, are illustrated in Tables 1 and 2 below.

Table 1 – Proven and Probable Reserves and In-Pit Inferred Resources

The Creston Molybdenum Deposit contains the following mineral reserves and 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 Reserves44,7360.07978,0240.05352,217
   Probable Reserves101,9680.076171,9240.047106,614
      
   Proven and probable reserves146,7050.077249,9480.049158,831
      
  In-pit Inferred Resources8,7180.06512,4640.06312,158
*Mo equivalent:  Mo% + (Cu%/7.5)
 

Table 2 – Mineral Resources

The Creston Molybdenum Deposit contains the following mineral resources at a 0.03% Mo equivalent* cut-off grade:

 
  

Category
Tonnes
(000's)
Mo
(%)
lbs Mo
(000's)
Cu
(%)
lbs Cu
(000's)
      
Measured52,2400.07485,4900.05058,080
Indicated124,6500.070192,7200.044121,060
      
Total (M + I)176,8900.071278,2100.046179,140
      
Inferred16,3000.05118,3200.06121,860
 *Mo equivalent:  Mo% + (Cu%/7.5)
 
  1. The mineral resources referred to herein have been estimated in a NI 43-101 technical report (the "MDA Report") prepared for the Company in December 2008 by Mine Development Associates ("MDA"). The person responsible for the resource estimate on behalf of MDA is Michael Gustin, P.Geo, and a Qualified Person for the purposes of National Instrument 43-101.The MDA Report is available at www.sedar.com.
  2. Proven and probable reserves are included in the statement of resources.

Dave Visagie, P.Geo, a Qualified Person as defined by National Instrument 43-101, is responsible for the technical information contained in this News 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 completion of the private placement and related matters. 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 (TEL) or (888)338-2200 (TOLL FREE)
    or
    Creston Moly Corp.
    Mr. Chris Curran
    604-687-7545 (TEL) or (888)338-2200 (TOLL FREE)
    or
    Creston Moly Corp.
    Mr. Ken MacDonald
    604-694-0005 (TEL)
    www.crestonmoly.com