Creston drills thick, high-grade moly

VANCOUVER — Creston Moly’s (CMS-V, CMSJF-O) initial round of infill drilling at its El Creston project in Sonora, Mexico, has turned in some long intervals of high-grade molybdenum mineralization.

Results are in for a half-dozen of the 16 holes completed in the resource drill program, with highlights of 0.14% molybdenum over 245.3 metres starting from surface in hole 07-007. That hole, drilled into the Main molybdenum zone, also included a 99.2-metre interval of 0.23% molybdenum in its upper section.

Creston notes an oxide zone extending from surface to as deep as 30 metres. Molybdenum oxide is not recoverable through a conventional flotation circuit.

The project was the subject of a previous development plan by Amax, now part of Freeport-Mc- MoRan Copper & Gold (FCX-N), and Mexican mining house Industrias Peoles (IPOAF-O, PENOLES-M). The 1970s and ’80s joint venture included prefeasibility, bulk sampling and metallurgical programs.

Molybdenum mineralization at El Creston occurs as disseminated molybdenite in quartz stockworks and in the matrix of breccia zones associated with quartz monzonite porphyry.

An early 2007 technical report put indicated resources at the project at 93 million tonnes grading 0.083% molybdenum and 0.06% copper for a contained metal tally of about 170 million lbs. molybdenum and 123 million lbs. copper. The study also estimated an inferred resource of 84 million tonnes averaging 0.076% moly and 0.05% copper at El Creston for an additional 141 million contained pounds moly and 93 million lbs. copper. The resource estimates are based on a 0.035% molybdenum cutoff grade.

El Creston forms a topographic high, resulting in a very low modelled strip ratio of less than 1 for an open-pit operation.

Amax’s metallurgical sampling program extracted material from a series of adits to access representative material. Its study indicated recoveries of about 87% from sulphide mineralization.

Creston has resumed its infill drill program aiming to upgrade a significant portion of inferred resource to the indicated category.

After closing a $40-million bought-deal private placement, the company acquired the project in mid-2007 for US$20.15 million, issuing US$10 million in units (comprising 15.8 million shares and 7.9 million warrants) and issuing 600,000 stock options to the vendors, who also retain a 3% net profit interest.

Shares of the prospective molybdenum miner (formerly known as Georgia Ventures) have recently traded at around 43, giving it a $51-million market capitalization based on its 119 million shares outstanding. The stock posts a 52- week trading range of 15-$1.21.