Tenajon Resources Corp.
TSX VENTURE : TJS

Tenajon Resources Corp.

May 05, 2009 10:03 ET

Tenajon Announces Moly Brook Zone Molybdenum Resources

Moly Brook Zone Contains an Indicated Resource of 124.5 Million Pounds of Mo and an Inferred Resource of 38.6 Million Pounds of Mo at a 0.04% Mo Cut-off

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2009) - Tenajon Resources Corp. (TSX VENTURE:TJS) (the "Company") today announces that a resource estimate has been completed on the Company's Moly Brook Zone. The zone, one of three identified on the Company's 100% owned Moly Brook Property, is located 2 kilometres north of the village of Grey River on the south coast of Newfoundland and less than 4 km from a deep water, ice free navigable fjord.

Highlights of the Resource Estimate (at a 0.04% molybdenum cut-off):

- 124.6 million pounds of molybdenum in Indicated Resources

- 38.6 million pounds of molybdenum in Inferred Resources

- 120.0 million pounds of the Indicated Resources and 32.1 million pounds of the Inferred Resources are contained within a pit shell which has an estimated strip ratio of 2.03:1

- Potential for a higher grade starter pit with an estimated strip ratio of 1.09:1 hosting Indicated Resources of 43.4 million pounds of molybdenum and Inferred Resources of 4.3 million pounds of molybdenum

- The Moly Brook Zone is still open for expansion along strike and at depth

The resource estimate was prepared by Kirkham Geosystems Ltd., an independent consulting firm. At a cut-off of 0.04% molybdenum ("Mo") Kirkham estimates the Moly Brook Zone to contain an Indicated Resource of 86.8 million tonnes grading 0.065% molybdenum representing 113 million pounds of molybdenum and an Inferred Resource of 31.3 million tonnes grading 0.056% molybdenum representing 38.6 million pounds of molybdenum. The zone is open along strike and at depth.

"We are pleased to have outlined resources after only two years of field work at the Moly Brook Property," says Bruce McLeod President & CEO of Tenajon, "The results of the resource estimate shows that the Moly Brook Property hosts a low strip, bulk tonnage molybdenum deposit with very good logistics in a politically stable environment. Furthermore, with only one of the three zones explored, the Moly Brook Property has the potential to significantly expand the Company's molybdenum resources, which also includes the Ajax Deposit, which hosts an Inferred Resource of 483.1 million tonnes grading of 0.061% Mo and an Indicated Resources of 69 million tonnes grading of 0.068 at a cut-off at 0.04% Mo."

The current resource incorporates the results of 43 drill holes totaling 16,188.2 metres in length. Four of the holes were drilled by a previous operator with the remaining 39 holes, totaling 15,129.72 metres in length, being completed by Tenajon in 2007 and 2008.

Preliminary studies demonstrate that nearly all of the Moly Brook Zone as defined by the 0.04% molybdenum cut-off, lies within a pit shell with an estimated strip ratio of 2.03:1. Within the main pit, there is potential for a starter pit hosting an indicated resource of approximately 27.1 million tonnes, averaging 0.073% molybdenum (43.4 million pounds Mo) and an inferred resource of 3.3 million tonnes averaging 0.060% molybdenum (4.3 million pounds Mo) with a strip ratio of 1.09:1. Additional engineering studies are required to determine the economic parameters and optimize the pit.

Mineral Resource Estimate

Table 1. Summary of the Mineral Resources within the Moly Brook Zone at various cut-off grades:



---------------------------------------------------------------
Indicated Resources
---------------------------------------------------------------
Cut-Off Tonnes
Grade greater than Mo Million Cu Million
Mo (%) cut-off (%) lbs Mo (%) lbs Cu
---------------------------------------------------------------
0 147,778,487 0.050 161.3 0.035 114.7
---------------------------------------------------------------
0.04 86,781,029 0.065 124.6 0.034 65.8
---------------------------------------------------------------
0.05 61,449,819 0.074 99.7 0.035 47.3
---------------------------------------------------------------
0.06 42,250,759 0.082 76.8 0.036 33.8
---------------------------------------------------------------
0.07 27,742,365 0.092 56.2 0.038 23.2
---------------------------------------------------------------
0.08 17,458,367 0.102 39.4 0.038 14.7
---------------------------------------------------------------
0.09 11,233,188 0.113 27.9 0.037 9.2
---------------------------------------------------------------
0.10 7,150,216 0.123 19.4 0.037 5.8
---------------------------------------------------------------


---------------------------------------------------------------
Inferred Resource
---------------------------------------------------------------
Cut-Off Tonnes
Grade greater than Mo Million Cu Million
Mo (%) cut-off (%) lbs Mo (%) lbs Cu
---------------------------------------------------------------
0 52,066,544 0.046 52.3 0.0267 30.7
---------------------------------------------------------------
0.04 31,263,359 0.056 38.6 0.0272 18.8
---------------------------------------------------------------
0.05 17,332,754 0.065 25.0 0.0302 11.5
---------------------------------------------------------------
0.06 8,913,550 0.076 15.0 0.033 6.5
---------------------------------------------------------------
0.07 4,779,313 0.087 9.1 0.0353 3.7
---------------------------------------------------------------
0.08 2,695,434 0.096 5.7 0.0377 2.2
---------------------------------------------------------------
0.09 1,635,951 0.105 3.8 0.0432 1.6
---------------------------------------------------------------
0.10 1,035,629 0.111 2.5 0.0474 1.1
---------------------------------------------------------------


The data and methodology utilized for the Resource Estimate, described below, was taken from a resource estimate report completed by Kirkham Geosystems Ltd under the direction of Garth Kirkham, an independent qualified person as defined by National Instrument 43-101. A technical report detailing the Resource Estimate will be filed on www.sedar.com within 45 days.

The database consists of a total of 43 drill holes which includes 2 holes drilled in 1995, 2 holes drilled in 1996, 12 holes drilled in 2007, and 27 holes drilled in 2008. Drill hole data was composited to 5 meter intervals.

Bulk densities were estimated based on 1,708 measurements taken during from drill core. An average bulk density of 2.71 was used for tonnage calculation.

Sectional interpretations were created for the Moly Brook Deposit. These sections were then wireframed to form a solid which were then edited to match the drill hole intercepts precisely in 3D. The solids were used to then code the drill hole assays and composites for subsequent geostatistical analysis and for block matching in the grade interpolation process.

0.21% copper and 0.26% molybdenum was chosen as the most reasonable threshold at which to cut grades. In addition, the range chosen at which to limit grades greater than threshold was 30 meters. Less than 0.24% of the composites were cut.

The block size chosen was 10m x 10m x 10m oriented orthogonally in an effort to adequately descretize the mineralized zones so as not to inject an inordinate amount of internal dilution and to somewhat reflect drill hole spacing available.

The choice of interpolator was inverse distance to the 3rd power for the Moly Brook deposit. Nearest neighbour, inverse distance and ordinary kriging were run for all deposits for comparison and validation purposes.

The three estimation passes were used to estimate the Resource Model because a more realistic block-by-block estimation can be achieved by using more restrictions on those blocks that are closer to drill holes, and thus better informed.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Resource estimates do not account for mineability, selectivity, mining loss and dilution. Inferred Mineral Resources are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these Inferred Mineral Resources will be converted to Measured and Indicated categories through further drilling, or into Mineral Reserves once economic considerations are applied.

Moly Brook Property's Exploration Potential

The Moly Brook Zone is one of three zones of molybdenum mineralization located within a 2.5 km long trend that also includes the Wolf and Chimney Pond Zones. The Wolf Pond Zone is located 800 metres south of the Moly Brook Zone. Rock sampling at Wolf Pond has outlined a 270 x 200 metre zone of sheeted veining hosting anomalous molybdenum values. Grab samples assayed up to 0.220% molybdenum while chip results include 3, 2.5 and 3 metre samples respectively assaying 0.191, 0.204 and 0.148% molybdenum. Channel sample results include 2.5 and 3 metre samples assaying 0.122 and 0.185% molybdenum. The zone has never been drilled.

The Chimney Pond Zone is located approximately 600 metres south of the Wolf Pond Zone. A 1960's soil survey outlined a 400 metre long by 300 metre wide zone of anomalous molybdenum geochemistry. Both packsack holes drilled into the zone intersected molybdenum values throughout their entire length with one of the holes intersecting a 27.44 metres averaging 0.057% molybdenum. This historic data was collected before the implementation of NI 43-101 and is presented only for information purposes. The Company has no way of verifying the results. Investors are cautioned that recent independent verification has not been completed and the historical results cannot be relied upon. In 2008 limited sampling was completed within the boundaries of the soil anomaly. Of the ten samples collected four returned values in excess of 0.050% molybdenum.

Dave Visagie P. Geo., a Qualified Person as defined by NI 43-101, reviewed the technical contents in this release and is responsible for the exploration programs at the Company's Moly Brook and Ajax properties.

On Behalf of the Board of Directors

TENAJON RESOURCES CORP.

D. Bruce McLeod, President

This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither 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

  • Tenajon Resources Corp.
    Bruce McLeod, President, CEO, Director
    Corporate Information / Investor Contact
    604-687-7545 or 1-888-338-2200
    (604) 689-5041 (FAX)
    info@tenajon.com
    www.tenajon.com
    or
    Tenajon Resources Corp.
    Chris Curran
    Investor Contact
    604-331-2288