Georgia pushes ahead for Mexican Moly

Georgia Ventures (GVI-V) has wasted little time getting to work on its recently acquired project that it calls, the most advanced open pit molybdenum deposit in Mexico.

On Sept. 19 the Vancouver-based company announced it had started drilling at the El Creston Molybdenum project which sits in the middle of the northwestern Mexican state of Sonora.

The drill program is immediately embarking on cutting 10,000 metres but Georgia has arranged an option with the drilling contract for another 20,000 metres.

Initial drilling is targeting infill drilling at the main Creston deposit with the aim of upgrading inferred resources into the indicated category.

El Creston currently has an indicated resource of 92.9 million tonnes grading 0.083% molybdenum and 0.06% copper for 169.9 million lbs of molybdenum and 122.8 million lbs of copper.

It has an inferred resource of 84.2 million tonnes grading 0.076% molybdenum and 0.05% copper for 141.1 million lbs. of molybdenum and 92.8 million lbs. of copper.

Those resources come from within a pit shell with strip ration of roughly 1:1 and were made using a 0.035% molybdenum cut-off grade.

While resources come only from the main Creston molybdenum zone, the company says more molybdenum mineralization sits in nearby areas most notably at the Red Hill zone, which is a largely untested target sitting 300 metres southwest of the main deposit.

Red Hill is interpreted as the root zone of the main deposit and is open along strike in both directions and at depth.

In all the El Creston site covers 180 sq. km and beyond Red Hill and the main Creston deposit contains exploration targets defined by molybdenum geochemical anomalies and advanced space-borne thermal emission and reflection radiometer (ASTER) signatures.

Georgia announced that it had significantly grown its land stake around Creston with by gaining title for the Metzli 4 claim a claim that now makes up 155 sq. km. of El Creston.

Georgia officially acquired the El Creston when it acquired Creston Mining back at the end of May.

It paid US$20.2 million, issued 15.9 million common shares, 7.9 million warrants, and granted 600,000 stock options to the vendors.

The Vendors have also retained a 3% net profits interest in the property. Georgia will also pay up to US$1.5 million as a finder’s.

When it acquired the project it came with a data base of 66 drill holes, largely thanks to work done by Amax and Penoles in the 1970’s and early 80’s. During that period an internal feasibility study was done.

Georgia has 118 million shares outstanding, and its share price has traded between $1.21 and 14 over the last 52 weeks. At press time its shares were trading for 41.