Creston Moly Corp: Developing Mexico’s Largest Molybdenum Deposit

Overview

Creston Moly Corp. (CMS) is a Tier 1 TSX-V listed company actively developing its 100% owned Creston Molybdenum Deposit in Mexico’s mining friendly state of Sonora.
The Creston Project is located 175 Kms south of the US Border and boasts excellent infrastructure with close proximity to power, roads and railway; a semi-desert climate allows for year round development. In addition a custom molybdenum roaster is located approximately 105 Kms from the property by road.
The Main Zone of the deposit contains 249,948,000 pounds of molybdenum and 158,831,000 pounds of copper in a proven and probable mineral reserve of 146,705,000 tonnes grading 0.077% Mo and 0.049% Cu. at a 0.035% Mo-equivalent cut-off grade.
Highlights:

• A pre-tax Net Present Value (“NPV”) of $465.3 million at an 8% discount rate and $379.7 million at a 10% discount rate;
• A pre-tax Internal Rate of Return (“IRR”) of 28.2% and capital payback of 3.6 years from initial production;
• An annual molybdenum and copper production of approximately 20 million pounds and 12 million pounds respectively from processing of 40k tonnes per day of ore;
• Direct costs, inclusive of copper byproduct credits, of $6.57 per lb of Mo- equivalent;
• An estimated initial capital expenditure of $511.6 million utilizing contract mining.

(Based on $15/lb Mo, $1.75/lb Cu and contract mining)

Chief Property

Creston Molybdenum Project

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)

Management

• Colin K. Benner, P.Eng. – Chairman & Director
• Jonathan W. George, B.Sc. – President, CEO & Director
• Wayne Johnstone, CA – Director
• Richard Godfrey – Director
• John McCleery – VP Corporate Development & Director
• Dr. Sadek E. El-Alfy, Ph.D, D.I.C., B.Sc., ARSM – Chief Operating Officer
• Kim Philips, B. Comm. – CFO & Secretary
• John Harman B.Sc. (Hons), M.Sc. – Manager of Engineering Studies

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