Tenajon hits long moly intercepts in Newfoundland

VANCOUVER — From one coast of Canada to the other, Tenajon Resources’ (TJS-V, TJRUF-O) drills have been hitting good molybdenum grades.

Following up on this spring’s strong molybdenum resource estimate at its Ajax property in B. C., Tenajon has just released promising numbers for its Moly Brook site, about 2.5 km from Grey River, on the south coast of Newfoundland.

So far, the company has results from the first two drill holes of a 6,100-metre, 14-hole, drilling program completed this year. That adds to its 12 holes from 2007. The company has outlined a mineralized body 450 metres wide and 750 metres long that extends to a depth of over 300 metres and is open along strike and downdip.

The latest holes tested the main zone’s western extension and followed up on a mineralized zone Tenajon hit in hole 5 last year. Starting from surface, hole 13 cut a 409-metre section averaging 0.061% molybdenum that included 31 metres at 0.119% molybdenum. On the eastern extension, hole 14 hit a 251-metre interval averaging 0.072% molybdenum starting at 88 metres depth, including 77 metres at 0.131% molybdenum.

The results buttress similar molybdenum grades encountered throughout the 2007 season that include a 104-metre interval in hole 6 that averaged 0.046% molybdenum (starting 197 metres down-hole) in the north end of the zone. In the south end, Tenajon hit a 274-metre interval grading 0.085% molybdenum (from 30.8 metres depth) in hole 8.

To boot, historic drill results hit molybdenite 2 km south of the Moly Brook zone, which is a series of north-trending, subvertical sheeted veins and fracture faces similar to the deposit found at Thompson Creek Metals’ (TCM-T, TC-N) Endako moly mine in B. C.

Tenajon president Bruce McLeod says he likes what he sees.

“We knew after last year we were on to something that had all the signs of an open-pittable deposit,” he says.

The results from this season only add to his expectations for the property.

When Tenajon first acquired the Ajax property in 1996, the company didn’t know it was setting itself up for a future focused on the mineral. At the time, the price was low and Tenajon hadn’t predicted its rise. But with the spike in price, and the 100% acquisition of Moly Brook from prospectors for $20,000 and 350,000 shares, the company has since spun off its gold properties and homed in on its three molybdenum properties: Ajax and Burn in B. C. and Moly Brook in Newfoundland.

“I don’t think we could put them any further apart,” jokes McLeod of the distance between properties.

And although Tenajon is further along with exploration at Ajax, having completed a resource estimate for it this winter, the Moly Brook property is growing on him.

“Both of them are close to tidewater,” he explains, but in terms of infrastructure, “Moly Brook is better.”

The company has spent $600,000 on the camp at Moly Brook, where it has two drill rigs working, and completed a land access trail from Grey River. Without the all-terrain vehicle trail, getting in had been an issue at the site — located on Canada’s foggiest length of coast.

“The summers in Newfoundland are gorgeous but interspersed with week-at-a time, no-fly fog,” he says.

Grounded helicopters meant decreased productivity.

“The only other issue right now is barge service in that part of the world,” he says. Apart from Burgeo, the few communities dotting the south coast of Newfoundland do not have roads running to them and are serviced by ferries.

In the future, McLeod expects to release a resource estimate by the first quarter of 2009, although he hopes it will come sooner.

But, he says: “We prefer to under-promise and over-deliver.”