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One of the best undeveloped molybdenum resources in the Americas.

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Message: Creston

Oct 25, 2007 06:12AM

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Oct 30, 2007 07:32AM

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Nov 14, 2007 03:34AM

RMC
Nov 14, 2007 05:50AM

Creston

in response to by
posted on Nov 14, 2007 06:30AM

The grade and tonnage charts in the 43-101 report indicates that the deposit's edges are sharply defined at about 0.02% Mo cutoff. Lowering the cutoff to almost zero added very little to the total tonnage. The company therefore knows the maximum size of the deposit and can therefore now design the best mining strategy.

The only way now to increase tonnage is to find it in other deposits elsewhere in the neighborhood. The Red Hill zone to the southeast looks promising but appears to be of limited size so far. No grades are quoted. I'm sure exploration will continue in the area but the company should focus on production now as the window of opportunity for high metal prices has opened. High metal prices are predicted for several years but are unlikely to continue over the long term. Early production means earlier payback on capital costs and will help prolong the life of the mine if and when metal prices drop.

Adanac and Geodex are looking at $200-300M for capital costs for slightly larger operations than Creston. In fact, in the last year, Geodex has increased their estimate from $200 to $300M. Speed is of the essence as costs rise but also because their are a number of other moly projects in development around the world. The first into production will take the cream of the profit and possibly tie up early sales contracts.

Creston's first priority should be to turn their inferred ore into indicated and then all into proven through definition drilling.


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RMC
Nov 15, 2007 09:36AM
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