Georgia soars on Mexican moly plans (March 27, 2007)

Vancouver – News of Georgia Ventures (GVI-V, GGVTF-O) plans to acquire the Creston molybdenum deposit in Sonora State, Mexico sent the juniors stock soaring more than 200% on strong trading.

The letter of intent sees Georgia Ventures shelling out US$20 million in cash, issuing US$10 million worth of units (one share plus a half-warrant) and 600,000 stock options to shareholders of the private company Creston Mining that holds the deposit through a Mexican subsidiary.

The Creston deposit hosts an indicated resource of 92.9 million tonnes grading 0.083% molybdenum and 0.06% copper, about 170 million lbs. of contained molybdenum and 123 million lbs. of contained copper, using a 0.035% molybdenum cut-off grade. Additional inferred resources of 84.2 million tonnes at 0.076% molybdenum and 0.05% copper were also tabled in the recent review.

The engineering study factored a low potential strip ratio (1-to-1) on an open pit model and utilized a US$6.50 per lb. molybdenum, operating costs of about US$4.25 per tonne and estimated process recoveries of 87%.

Once the deal is completed, Georgia plans a 10,000-metre drill program aimed at upgrading the inferred resources.

Past work on the project included a late-1970s drilling program by Industrias Peoles (IPOAF-O) and Amax, now part of Freeport-McMoRan Copper and Gold (FCX-N), that led to completion of a prefeasibility study and development of a pair of horizontal adits to test grade continuity and collect metallurgical samples.

Molybdenum and copper mineralization at Creston occurs primarily as disseminations within a quartz monzonite porphyry intruding an igneous-metamorphic complex.

With its price recently rising several dollars to above the US$30.00 per lb. level, molybdenum has emerged as an in-vogue metal amongst a growing number of explorers.

Additionally, with a $75-million initial public offering underway the upcoming launch of the Sprott Molybdenum Participation fund plans to invest in a portfolio of molybdenum producers and explorers, and also plans to purchase physical amounts of the metal.

Georgia Ventures closed up 31 at 46 per share on March 27th trading with volume of over 5.1 million shares. With 43.3-million shares outstanding, the junior posts a $20-million market capitalization.