Creston Moly Corp. (TSX VENTURE:CMS) today announced the assay results of four diamond drill holes recently completed at its El Creston molybdenum property located in the state of Sonora, Mexico.
- Hole EC10-113 intersecting 33.55 metres averaging 0.243% molybdenum;
- Hole EC10-110 intersecting 48.80 metres averaging 0.46% copper coincidental with a 33.55 metre section of 0.032% molybdenum and a 20 metre section of 28.06 g/t silver;
- Hole EC10-109 intersecting a 70.15 metre section averaging 0.081% molybdenum within a 100.65 metre section of 0.070% molybdenum. The 100.65 metre intercept also includes a 57.95 metre section averaging 0.11% copper and a 6.50 metre section of 42.80 g/t silver;
- Hole EC10-112 intersecting a 27.45 metre section averaging 0.064% molybdenum, 0.18% copper and 2.30 g/t silver at the bottom of the hole.
The holes are from Phase 3 of a four phased drill program initiated in February 2010 to advance the El Creston molybdenum deposit in the preparation of a feasibility study. The purpose of the drill program is to:
- expand the El Creston deposit in selected areas
- complete in-fill drilling in areas of limited drilling within the Creston Main Zone Resource
- drill the Red Hill Shallow zone such that in conjunction with historic drilling it may be incorporated into 43-101 compliant resources and be included into the Creston Open Pit, and complete drill testing for structural and hydrological information
"We are extremely pleased with the results of our 2010 drilling and believe that data collected from the program will interpret the El Creston molybdenum deposit to be a much larger resource than originally determined," said Bruce McLeod, President & CEO. "Additionally with Hole EC10-113 intersecting 0.243% molybdenum midway between holes that intersected sections grading as high as 0.107% and 0.113% Mo it is apparent that there may be several areas which could be modeled as higher grade starter pits in the upcoming technical studies."
Hole EC10-109 was drilled to test the upper portion of the Main Deposit between Holes EC08-39 located 70 metres to the north and EC08-47 located 75 metres to the south. Hole EC08-39, an angle hole drilled due south, intersected a 291.55 metre section averaging 0.085% molybdenum commencing at a down hole depth of 40.85 metres. At the top of the section is a 41.05 metre intersection averaging 0.16% copper. Hole EC08-47, a vertical hole, intersected a 172.4 metre section averaging 0.084% molybdenum commencing at a depth of 124.75 metres. Hole EC10-109 intersected a 70.15 metre section averaging 0.081% molybdenum within a 100.65 metre section averaging 0.070% molybdenum. Coincidental with the 100.65 metre intercept is a 57.95 metre section averaging 0.11% copper in which there is a 6.50 metre section averaging 42.80 g/t silver.
Hole EC10-110, a vertical hole, was drilled near the southern resource boundary of the Main Deposit. The hole is located approximately 50 metres due south of EC08-30 and 130 metres north of Hole EC10-085. Hole EC08-30 intersected significant molybdenum and copper mineralization with results including 62.75 metres averaging 0.041% molybdenum within a 151.05 metre section averaging 0.40% copper. Hole EC10-085, located in the Red Hill Zone, intersected 32.50 metres averaging 0.087% molybdenum that is partially coincidental with a 43.75 metre section averaging 0.18% copper. Hole EC10-110 intersected a 33.55 metre section averaging 0.032% molybdenum within a 48.80 metre section averaging 0.46% copper. Coincidental with the intercept is a 20 metre section averaging 28.06 g/t silver.
Hole EC10-112 was drilled to test the continuity of mineralization between Holes EC08-026 located 40 metres to the west (Upper Zone 46.85 metres averaging 0.021% molybdenum with 0.30% copper) and Hole EC08-21 located 100 metres to the north (228.6 metres averaging 0.076% molybdenum commencing at a depth of 58.84 metres). Commencing at a down hole depth of 125.05 metres the final 27.45 metres of Hole EC10-112 averaged 0.064% molybdenum, 0.18% copper and 2.30 g/t silver.
Hole EC10-113 is located in close proximity to northern resource boundary of the Main Deposit. The hole, located approximately 50 metres north of Hole EC10-072 (195.6 metres averaging 0.086% molybdenum) was drilled to test the continuity of the mineralization in the upper portion of the Main Deposit in the area identified as a potential site of a starter pit. Commencing at a depth of 61 metres the hole intersected a 33.55 metre section averaging 0.243% molybdenum that is coincidental with a 24.70 metre section averaging 0.10% copper.
To-date, Creston has completed three phases of drilling totaling approximately 9,700 metres on its El Creston molybdenum deposit. The drilling has intersected significant above cut-off grade mineralization on the south, west and northern boundaries of the Main Zone resource outline. In addition, drilling on the Red Hill Zone has encountered significant near surface molybdenum and/or copper mineralization that could potentially be mined as part of a larger open pit that would include both the El Creston Main and Red Hill Zones.
The Company has recently commenced a 4th phase of drilling consisting of eight geotechnical holes to test the design of the open pit and two diamond drill holes to test the Red Hill strike extension. Results of the Phase 4 will be released as they become available. The drilling is part of a program being completed to advance the deposit towards the completion of a definitive feasibility study which is expected to be completed in the 2nd quarter, 2011.
Sampling and QA/QC
All of the samples collected were delivered by Company personnel to ALS-Chemex's prep lab in Hermosillo, Mexico where they were logged into the computer tracking system, crushed, split and a pulp sample prepared. The pulp sample was sent to ALS- Chemex's laboratory in Vancouver, B.C. for analysis by Inductively Coupled Plasma. ALS-Chemex is an ISO/17025 accredited laboratory. ALS-Chemex monitors quality control through the introduction of blanks, standards and duplicate sampling. In addition, Creston personnel routinely insert blanks and standards into the sample stream. Dave Visagie, P. Geo., a Qualified Person as defined by NI 43-101 is responsible for the technical information contained in this release.
El Creston Molybdenum Deposit
In 2009 a NI 43-101 compliant Pre-Feasibility Study ("PFS"), was issued by M3 Engineering & Technology Corporation of Tucson, Arizona ("M3"). Using a base case scenario of $15/lb Mo and $1.75/lb Cu M3 determined that the El Creston molybdenum deposit has an after-tax Net Present Value ("NPV") at an 8% discount rate of USD$306.02 million and an Internal Rate of Return ("IRR") of 20.2%. Creston is focusing on the completion of optimization projects designed to further improve the economics of the project by increasing the size of the resource and re-engineering certain key components of the project.
Source: Creston Moly Corp.