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The Creston molybdenum deposit was extensively explored by major mining companies (Amax, Penõles, Fresnillo) during the 1970's and early 1980's. Amax advanced the project to the feasibility stage, however, as a result of the decline of the price of molybdenum in 1984, the project was "mothballed". The claims lapsed and, in 1994, two astute Mexican nationals staked the heart of the property when the claims came open.
Creston Moly Corp. (formerly Georgia Ventures Inc.) purchased the property containing the Creston Deposit from the vendors and acquired additional surrounding claims.
An infill drilling program was completed on the main Creston molybdenum deposit in order to upgrade inferred resources to the measured and indicated categories, as well, step-out drilling was undertaken to evaluate its southern extensions. Concurrently with the drill program the Company executed a systematic evaluation of the numerous untested molybdenum anomalies.
Mine Development Associates ("MDA") of Reno Nevada, an independent consulting firm, completed an updated resource estimate on the Main Zone of the Creston deposit in October, 2008 and the Company published the results.
The estimate is based on data provided from 116 drill holes and the mineral domain polygons interpreted from a total of 111 cross sections.
Creston Primary Resource Estimate @ 0.03% Mo-Equivalent* Cut-Off Grade
*Mo-equivalent cut-off: Mo% + (Cu%/7.5)
| Classification |
Tonnes |
Mo % |
Cu % |
Mo lbs.
Millions |
Cu lbs
Millions |
| Measured |
52,240,000 |
0.074 |
0.050 |
85.490 |
58.080 |
| Indicated |
124,650,000 |
0.070 |
0.044 |
192.720 |
121.060 |
| Total (M+I) |
176,890,000 |
0.071 |
0.046 |
278.210 |
179.140 |
| Inferred |
16,300,000 |
0.051 |
0.061 |
18.32 |
21.860 |
1. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimates of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant issues.
2. The quantity and grade of reported inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
Highlights of the deposit are as follows:
- 40% of the total Measured and Indicated Resources, approximately 73.5 million tonnes, average 0.103% Mo and 0.054% Cu (167 million pounds of molybdenum contained and 88 million pounds of copper contained) applying a 0.08% Mo - equivalent cut-off - see Table 2
- A near surface, high grade breccia has been defined, within the eastern portion of the deposit, that contains approximately 19 million tonnes of Measured and Indicated Resources averaging 0.098% Mo (41 million pounds of molybdenum contained) at a 0.03% Mo - equivalent cut-off - see Table 3
TABLE 2
MAIN ZONE RESOURCES
(at a 0.08% Mo-equivalent* cut-off)
*Mo-equivalent Cut-off: Mo% + (Cu%/7.5)
| Classification |
Tonnes |
Mo % |
Cu % |
Mo lbs.
Millions |
Cu lbs
Millions |
| Measured |
22,630,000 |
0.108 |
0.061 |
53.790 |
30.600 |
| Indicated |
50,820,000 |
0.101 |
0.051 |
113.620 |
57.320 |
| Total (M+I) |
73,450,000 |
0.103 |
0.054 |
167.410 |
87.920 |
| Inferred |
3,010,000 |
0.105 |
0.057 |
6.980 |
3.780 |
TABLE 3
RESOURCES IN EAST BRECCIA OF MAIN ZONE
(at a 0.03% Mo equivalent* cut-off)
*Mo-equivalent Cut-off: Mo% + (Cu%/7.5)
| Classification |
Tonnes |
Mo % |
Mo lbs.
Millions |
| Measured |
8,000,000 |
0.101 |
17.810 |
| Indicated |
11,130,000 |
0.095 |
23.300 |
| Total (M+I) |
19,130,000 |
0.098 |
41.110 |
| Inferred |
480,000 |
0.068 |
0.730 |
The mineral resources estimated by MDA are confined to the Main Zone. Significant potential exists for additional molybdenum mineralization in nearby areas such as the Red Hill Zone, a relatively untested target located 300 metres southwest of the main Creston deposit. The Red Hill Zone, which has been interpreted as the root zone of the Creston deposit, is open along strike in both directions and at depth.
Potential exists for additional resources in the Alejandra Zone, a newly discovered zone located 1500 metres to the north of the Main Zone, where work to date has included detailed mapping and rock sampling.
Creston Moly Corp. has made significant advances over the past year. The Company has completed key elements of the pre-feasibility study with the metallurgical, geotechnical, tailings impoundment design work, environmental baseline and water studies all complete and the pit design and optimization planning is well underway. The study results are expected to be announced first quarter of 2009 and work is already underway on the bankable feasibility with expected completion by the middle of 2009.
Bankable Feasibility Study
The Company engaged M3 Engineering & Technology Corporation ("M3") for the provision of a bankable feasibility study on the Creston Molybdenum Deposit in Sonora, Mexico.
The study will be conducted in two formal phases consisting of pre-feasibility engineering and feasibility engineering. The Company expects to have the pre-feasibility engineering study completed in the first quarter of calendar 2009. The scheduled completion date for the bankable feasibility engineering study is mid 2009.
M3 has offices in Tucson Arizona, Chandler Arizona and most importantly for the Company, in Hermosillo, Mexico, where their associates have an intimate knowledge of all aspects of the Mexican mine permitting process. They are a full-service international engineering firm providing engineering, procurement and construction management services to the minerals industry. Founded in 1986 and with a current staff of over 400 employees, M3 has engineered and managed over $2.0 billion in mining projects, and notably, has won numerous recognitions including the prestigious 2005 AISC Engineering Award for Excellence and the American Mining Hall of Fame's 2007 Mining Foundation of the Southwest Industry Partnership Award.
The Company received the required approvals from the government of Mexico for its acquisition of surface rights covering 1,200 hectares (3,000 acres) from the Ejido of Opodepe, Sonora, Mexico which cover the Creston Main deposit and the surrounding area that will be used to accommodate future development.
As part of its ongoing commitment to the people of Opodepe, the Company will assist in establishing water reservoirs for livestock, maintain and upgrade medical facilities and will continue helping the "adopted" community school.
The person responsible for the resource estimate on behalf of MDA is Michael Gustin, P.Geo, a Qualified Person for the purposes of National Instrument 43-101. Dr. Luca Riccio, PhD., P.Geo, a Qualified Person as defined by National Instrument 43-101, is responsible for the technical information contained herein.
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