VANCOUVER, Dec. 19 /CNW Telbec/ - Creston Moly Corp. ("Creston" or the
"Company") (TSX-V: CMS) advises as a result of a technical disclosure review
by the Corporate Finance Department of the B.C. Securities Commission, the
Company is issuing the following News Release to clarify its disclosure.
A number of disclosures by the Company are not in compliance with
National Instrument 43-101 standards of disclosure for mineral projects,
(NI 43-101) and national policy 51-201 disclosure standards (NPI-201).
In an October 31, 2007 interview with Mr. Jonathan George, President, CEO
and Director, distributed as a podcast by Agoracom Communications, it was
stated that "the Creston deposit has a copper cap containing 16 million tonnes
of about 0.4% copper" and that "it would be very worthwhile to put a leach pad
in and get the copper out." "This could probably pay for our capital costs."
The Company wishes to state that the copper resource estimate referred to
by Mr. George is historical in nature. The work necessary to classify the
historical resource estimate has not been completed and the historical
resource estimate therefore, cannot be treated as NI 43-101 defined resource
verified by a qualified person.
The historical copper resource estimate should not be relied upon and
there can be no assurance that any of the copper resource, in whole or in
part, will ever become economically viable. Further, this copper resource
estimate, which was made by AMAX in a report titled "An Analysis of the
Creston Molybdenum Property, Sonora, Mexico" and written in 1978, was reported
as a geological reserve of 18 million tonnes of copper grading 0.35% Cu, which
used categories not permitted by NI 43-101, and might be comparable to the
inferred mineral resource category.
Mr. George also retracts his statement "it would be very worthwhile to
put a leach pad in and get the copper out. This could probably pay for our
capital costs", as no economical analysis on this historical copper resource
has been undertaken by the Company and disclosure of economic analysis of
historical or inferred mineral resources is prohibited by NI 43-101.
The copper mineralization referred to by AMAX is contained within a
chalcocite blanket on the southwest flank of the Creston Molybdenum deposit
and is considered relevant as it may add to the value of the Creston
In the October 31st, 2007 interview with Agoracom, Mr. George disclosed
the Creston Moly deposit solely in terms of gross pounds of Moly combining
inferred and indicated categories. Such disclosure is prohibited by NI 43-101
and is here restated as 93 million tonnes grading 0.083% Mo containing gross
169.9 million pounds in the indicated category and 84 million tonnes grading
0.076% Mo containing 141.1 million pounds in the inferred category as
supported by the Company's technical report dated March 27, 2007.
In the October 31st, 2007 interview with Agoracom, Mr. George states the
Creston Molybdenum deposit in terms of gross equivalent ounces of gold,
combining inferred and indicated categories. The deposit does not contain
potentially recoverable gold and this statement is hereby retracted.
The Company also retracts its disclosure of the Creston deposit,
including inferred category, in terms of gross in-situ dollar metal value.
Disclosure of a deposit solely in terms of gross contained metal and gross
dollar value may be misleading as it does not factor in mineability and
recoverabilty and fails to take into consideration operating and capital
costs, recoveries, smelter costs and other factors relating to the potential
mining, extraction and recovery of metals.
The Company further wishes to state that contrary to statements made in
the October 31st interview with Agoracom, until a preliminary assessment or
"scoping study" of the Creston deposit has been completed, projections of net
present value, daily production rates, break even molybdenum price and assumed
molybdenum price are premature and unsubstantiated and are hereby retracted.
The Company's website, and investor materials contain a quote by Mr. C.M.
Miller, Exploration Manager for AMAX in 1978, who quantified the tonnage of
the known exploration targets at the time, inclusive of the Creston Zone.
Based on the stage of exploration at that time, Mr. Miller stated that the Red
Hill zone could equal the present Cerro Creston area in size. The Red Hill
Zone has been interpreted to be the faulted extension of the Main Creston
Molybdenum Zone as indicated by the numerous drill hole intercepts obtained by
AMAX during their various exploration programs.
It should be emphasized that no NI 43-101 compliant estimates of the
potential quantity and grade ranges of the Red Hill zone have been made and
the exploration target is conceptual in nature. There has been insufficient
exploration to define a mineral resource and there is no certainty that
further exploration of the Red Hill zone will result in the delineation of a
Similarly, there are no compliant estimates of potential quantity and
grade ranges for additional potential exploration targets at Creston, and
current mineral resource estimates have been made subsequent to the 1970's
AMAX estimates of potential for Creston. The Company is presently undertaking
an in-fill drill program on the Creston Molybdenum deposit in order to upgrade
inferred resources to the indicated category which will form the basis for a
The Company also wishes to state that the Creston project is its only
material property, as it has terminated its option agreement to acquire an
interest in the Serb Creek property.
About Creston Moly Corp.: Creston Moly Corp. is a Canadian mineral
exploration company focused on the development of the El Creston Molybdenum
deposit in Sonora, Mexico. The Creston Molybdenum Project contains the
following mineral resources at a 0.035% Mo Cut-off grade:
Category Tonnes Mo% Cu% Mo lbs Cu lbs
-------- ------ --- --- ------ ------
Indicated 92,873,000 0.083 0.060 169.9 122.8
Inferred 84,221,000 0.076 0.050 141.1 92.8
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
3. The mineral resources referred to herein have been estimated in an
NI 43-101 compliant technical report (the "P & E Report") prepared
for the Company in March 2007 by independent qualified persons Eugene
Puritch, P. Eng. and Dr. Wayne Ewert, P. Geo. of P&E Mining
Consultants Inc. The P & E Report is available at www.sedar.com.
Dr. Luca Riccio, PhD., P. Geo, a Qualified Person as defined by National
Instrument 43-101, is responsible for the technical information contained in
this News Release.
On behalf of the Board
(Signed) "Jonathan W. George"
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy and accuracy of this release.
Forward Looking Statements: The above contains forward looking statements
that are subject to a number of known and unknown risks, uncertainties and
other factors that may cause actual results to differ materially from those
anticipated in our forward looking statements. Factors that could cause such
differences include: changes in world commodity markets, equity markets, costs
and supply of materials relevant to the mining industry, change in government,
and changes to regulations affecting the mining industry. Forward-looking
statements in this release include statements regarding future exploration
programs, operation plans, geological interpretations, mineral tenure issues,
and mineral recovery processes. Although we believe the expectations reflected
in our forward looking statements are reasonable, results may vary, and we
cannot guarantee future results, levels of activity, performance, or
For further information:
For further information: Mr. Jonathan George, (604) 694-0005, (604)
684-9365 (FAX), Website: www.crestonmoly.com; Renmark Financial Communications
Inc.: Christine Stewart, firstname.lastname@example.org; Tina Cameron,
email@example.com; Media - Adam Ross, firstname.lastname@example.org;
(514) 939-3989, Fax: (514) 939-3717, www.renmarkfinancial.com