MEXICO — Creston Moly Corp. has completed a pre-feasibility study that attaches a capital cost of between US$511.6 million and US$576.2 million to development of its Creston project in Sonora. Annual production is estimated to be 20 million lb of molybdenum and 12 million lb of copper from a 40,000-t/d processing plant.
Direct costs, inclusive of copper byproduct credits would be US$6.57/lb MoEq with contract mining or US$5.74/lb MoEq if Creston does the mining. The study determined a pre-tax NPV at an 8% discount rate of US$465.3 million (contract mining) or $502.9 million (owner operated). A moly price of US$15.00/lb and a copper price of US$1.75/lb were used.
The Creston deposit, Mexico’s largest molybdenum deposit, has proven and probable reserves of 146.7 million tonnes grading 0.077% Mo and 0.049% Cu. Measured and indicated resources (including reserves) are 176.9 million tonnes grading 0.071% Mo and 0.046% Cu. There is also an inferred resource of 16.3 million tonnes at 0.51% Mo and 0.061% Cu.
View the corporate presentation of March 30, 2009, at www.CrestonMoly.com, for detailed information on the Creston project.