Creston Moly Corp.
TSX VENTURE : CMS

Creston Moly Corp.

March 01, 2010 08:00 ET

Creston Moly Intersects Significant Mineralization at Creston Deposit, Mexico

Drilling Confirms Resources Beyond Existing Limits and Increased Grade

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2010) - Creston Moly Corp. ("Creston" or the "Company") (TSX VENTURE:CMS) is pleased to announce the results of the first five holes of a 5,000 metre drilling program on its molybdenum project in Sonora, Mexico.

Highlights of the drill program include intercepts of:

  • 189.05 metres @ 0.091% molybdenum including 94.55 metres @ 0.150% molybdenum (Drill Hole EC10-67)
  • 222.65 metres @ 0.074% molybdenum including 122.00 metres @ 0.100% molybdenum (Drill Hole EC10-70)

"We are extremely pleased with the results of our initial drilling as it is now very apparent that we have a much larger resource than originally determined." said Bruce McLeod, President & CEO. "Our goal of expanding the known resources of the Creston deposit is being achieved and additionally may provide a high grade, low strip ratio starter pit for the commencement of production as these new results contain high grade molybdenum values over large intervals."

Phase One 2010 Program

The company is well advanced on its 5,000 metre drilling program with 11 holes (3,225 metres) now completed. Drill results will be routinely released as the assaying results are available. The drilling program is part of a $4 million work program on the El Creston deposit(s) designed to advance the project towards completion of a feasibility study. In addition to the drilling there is geophysical and other ground work being conducted on the property however the purpose of the 2010 drilling is to:

  • Expand the 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 Creston Main Zone Resource.
  • Undertake 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, geotechnical, metallurgical and hydrological information.

Drilling Results

Please click the link below to view the map which outlines the drill hole locations and numbers.

http://www.crestonmoly.com/i/maps/2010-02-04_Creston_Drill_Holes_2010_Location_PP.jpg

Drilling of holes EC10-68 and 70 (step out holes) produced lengthy intersections of significant grade molybdenum outside the present resource limits, resulting in a successful expansion of the Main Zone north of the existing resource limits. More specifically, Drill hole EC10-68 (an angled hole) intersected molybdenum bearing intersections up to 160 metres north of the present resource limits. In addition, the hole showed a significant improvement in the length of the intersections in comparison to Drill hole A-27 (52 metres averaging 0.043% molybdenum that included a 28 metre section averaging 0.068% molybdenum) located 100 metres to the south of the collar of drill hole EC10-68. Drill hole EC10-70, (a vertically drilled hole) was positioned approximately 30 metres north of the resource limits and 100 metres north of Hole EC08-37, which averaged 0.083% molybdenum over 175.62 metres.

Drill hole EC10-67 was positioned within the northern portion of the resource limits to test an area previously projected to contain molybdenum values at less than cut-off grade. The drill hole intersected a lengthy high grade section showing continuity of high grade molybdenum values to the resource limits. The hole compares favourably with Drill hole EC08-32 (an angled hole drilled to the north) located 125 metres to the west. This hole intersected 160.55 metres averaging 0.106% molybdenum. The results of this drilling will convert waste which was to be mined within the pre-existing pit design to mineable resources.

Drill holes EC10-66 and 69 were designed to test an area of lower grade mineralization on the northeast side of the El Creston Main Pit as projected in the block model used in the resource calculation. These results confirm the block model in this area.

Table 1 – El Creston Drill Results


Hole

Azimuth

Dip
Length (metres) From (metres) To (metres Int (metres) Mo (%)
EC10-66 0 -90 390.4 115.90 137.25 21.35 0.046
        234.85 353.80 118.95 0.039
      incl 234.85 265.35 30.50 0.052
      and 326.35 353.80 27.45 0.067
               
EC10-67 360 -60 305 57.95 247.00 189.05 0.091
      incl 131.95 225.70 94.55 0.150
               
EC10-68 360 -68 338.55 15.25 25.77 10.52 0.045
        33.55 54.90 21.35 0.056
        76.25 82.35 6.10 0.048
        122.00 256.20 134.20 0.040
      incl 143.25 192.15 48.80 0.055
        271.45 277.55 6.10 0.044
        289.75 295.85 6.10 0.077
        329.40 334.60 5.20 0.051
               
EC10-69 360 -45 184.85 99.45 120.80 21.35 0.027
        136.05 148.25 12.20 0.027
               
EC10-70 0 -90 318.45 27.20 249.85 222.65 0.074
      incl 112.60 246.80 122.00 0.100
      or 124.80 191.90 67.10 0.130

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 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 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.

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