Creston Moly Corp.

Creston Moly Corp.

January 18, 2010 08:00 ET

Creston Moly Corp.: Drilling Program to Commence on El Creston Deposit

Signature of Deposit Increased by 30%, New Targets Identified

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2010) - Creston Moly Corp. ("Creston" or the "Company") (TSX VENTURE:CMS) announces that contracts for both a 5,000 meter drill program and an 18 km 3D Inversion Induced Polarization Survey have been let with work expected to commence later this month.

As well the Company is also providing the results of the recently completed mapping and sampling program undertaken at its 100% owned El Creston Molybdenum Property. The program was designed to follow-up on the results of a recently completed compilation of all the geological data on the El Creston property. This work outlined seven areas having the potential to host significant molybdenum mineralization. 

Highlights include:

  • Confirming and extending the zone of anomalous in rock molybdenum values up to 250 metres north of the Creston Main Resource limits. 
  • Confirming anomalous molybdenum in rock values that extend up to 400 metres east of the limits of the Creston Main Resource.
  • Outlining a 100 by 500 meter (open in all directions) molybdenum in rock anomaly and centered about Hole A-37. Hole A-37 has a 74 metre intercept averaging 0.094% molybdenum starting at 44 metres below surface.
  • Confirming the Red Hill West Zone hosts anomalous molybdenum values throughout and expanded the signature to 500 metres long and up to 800 metres wide. 
  • Outlining two major and several minor zones of anomalous molybdenum values in rock samples on the Alejandra grid.

Drill Program

A 5,000 metre drill program has been contracted and is expected to commence in late January, 2010. 

The purpose of the drilling is to:

  • Test the north end of the Creston Zone where the current drill sections show the resource remains open. All of the northernmost holes located along a 350 metre segment 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 Creston Main Zone Reserve
  • Complete limited testing of the Red Hill Zone with the purpose of defining a zone that may be incorporated into the proposed Creston Open Pit.
  • Complete drill testing for structural and hydrological information.

"I am extremely pleased with the results of our first concerted effort of compiling property wide data and the quality of exploration targets which have emerged from that review" said Bruce McLeod, President & CEO. "Subsequent ground exploration has validated these targets and in the case of the El Creston deposit have shown that the geochemical signature has been expanded by over 30%. We are excited to begin drill testing of these new target areas with the goal of expanding the known resources."

Previous work on the Creston Property was concentrated on evaluating the Creston Main and Red Hill Zones. Exploration at the Creston Main Zone shows it to be up to 1,150 metres in length with the width up to 875 metres. The deposit has been traced vertically to 550 metres.

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 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%.

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

lbs Mo
lbs Cu
   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 Red Hill Zone hosts two distinct molybdenite bearing zones referred to as the Shallow and Deep. The Shallow Zone is up to 600 metres long with widths up to 150 metres. Thickness ranges up to 120 metres. Drill results include a 46 metre intercept averaging 0.133% molybdenum. The Deep Zone, located 100 to 250 metres below the Shallow Zone is open in all directions. Drill results include a 241.3 metre section averaging 0.085% molybdenum.

3D Inversion Induced Polarization Survey

An 18 km long 3D Inversion I.P. survey is planned to begin in January, 2010. The geophysical survey will be used to model the Creston Main and Red Hill Zones so the signature can be applied on other targets

Mapping and Sampling Outlines and Expands Several Zones of Molybdenum at Creston

The 2009 work program followed up on the results of a compilation program showing several target areas having various combinations of geologic, geochemical and Aster Imaging signatures similar to those at the Main and Red Hill Zones. Mapping and sampling completed over a three month period resulted in the taking of 697 continuous rock chip samples. The results of the sampling were merged with the results of previous programs completed by prior owners. The prior work was completed before the implementation of NI 43-101 but is well documented and is considered reliable.

The 2009 program was successful in further defining and outlining several highly prospective targets. 

Creston North and East Targets

The Creston North and East Areas are located immediately adjacent to the Creston Main resource. Drill sections indicate the resource is open to the north, and in part both to the west and east. All of the northernmost holes drilled along a 350 metre segment of the Creston resource intersected significant molybdenum values including intersections of 186.05 and 160.55 metres respectively assaying 0.109% and 0.106% molybdenum. A number of samples located up to 300 metres north of the resource limit assayed >0.01% molybdenum with the best result being a 6 metre sample averaging 0.144% molybdenum. Within the area molybdenum values ranged from 0.002% to 0.148% Mo. Sampling along the eastern boundary of the resource outline showed anomalous, molybdenum values to extend up to 400 metres to the east.

A-37 Zone

The A-37 Zone is located to the south of the Red Hill Zone. A hole drilled in the area by Amax Exploration Inc. in 1975 intersected 74 metres averaging 0.094% molybdenum commencing at a depth of 44 metres below surface. The nearest drill hole is located 200 metres to the north.

The A-37 Zone, as defined by 13 rock chip and grab samples, is 100 metres wide by up to 500 metre long and is open in all directions. Chip sample results include two 3 metre samples assaying 0.523% and 0.272% molybdenum metres located 100 metres apart. Within the anomaly values range from 0.04% to 0.523% Molybdenum.

Red Hill West

The Red Hill West target refers to the possible western extension of the Red Hill Zone. Previous sampling by prior owners outlined a zone 400 metres in length and up to 800 metres wide in which several sites returned values in excess of 0.025% molybdenum to a maximum of 0.080% molybdenum. Sampling by Creston confirmed and extended the zone 50-100 metres to the west. Of the 40 samples taken from the Zone, 7 assayed greater than 0.025% molybdenum with the best result being a 3 metre chip sample assaying 0.083% molybdenum.

Alejandra Grid

The Alejandra Grid refers to a 1.5 x 2 kilometer area in which several zones of anomalous molybdenum +/- silver values hosted by granitic rocks of widely varying age occur. The grid was initially mapped and sampled in 2008 with additional sampling being completed in 2009. The sampling has identified two major zones, the Alejandra East and the Alejandra West. The Alejandra East is 800 metres long and open and up to 300 metres wide as defined by 54 rock chip and grab samples. Of the 54 samples, 15 assayed >0.025% molybdenum with the best result being a 3 metre sample assaying 0.256% molybdenum. The Alejandra West is 900 metres long and up to 500 metres wide as defined by the >0.01% molybdenum in rock contour. Of the 70 samples comprising the zone 16 assayed >0.025% molybdenum with the best sample being a 3 metre chip assaying 0.102% molybdenum. Elsewhere on the grid there are several other smaller zones of molybdenum mineralization.

All of the samples collected in 2009 were delivered by Company personnel to ALS-Chemex's prep lab in Hermosillo, Mexico where they were logged in to 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. 

The work outlined above is part of a $4 million work program on the El Creston designed to advance the El Creston molybdenum project closer to completion of a full feasibility study.

Please visit to view the map of the El Creston project.

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


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 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)
    Creston Moly Corp.
    Chris Curran
    Investor Relations
    604-687-7545 (Tel) or (888)338-2200 (Toll Free)
    Creston Moly Corp.
    Ken MacDonald
    604-694-0005 (Tel)