Georgia Pushes Ahead on Mexican Moly

Georgia Ventures (GVI-V, GGVTF-O) has wasted little time getting to work on a recently acquired project that it calls “the most advanced open-pit molybdenum deposit in Mexico.”

In September, the Vancouver-based company announced it had begun drilling at the El Creston molybdenum project, situated in the middle of the northwestern Mexican state of Sonora.

The company is starting with 10,000 metres of drilling, but Georgia has arranged an option with the drilling contractor for another 20,000 metres.

Initially, the campaign is targeting infill drilling at the main Creston deposit with the aim of upgrading inferred resources to the indicated category.

El Creston currently has an indicated resource of 92.9 million tonnes grading 0.083% molybdenum and 0.06% copper, for 169.9 million lbs. molybdenum and 122.8 million lbs. copper. The inferred resource stands at 84.2 million tonnes grading 0.076% molybdenum and 0.05% copper, for 141.1 million lbs. molybdenum and 92.8 million lbs. copper.

Those resources come from within a pit shell with a strip ratio of roughly 1:1, with a 0.035% molybdenum cutoff grade used in the calculation.

While resources come only from the main Creston molybdenum zone, the company says more molybdenum mineralization also exists in nearby areas — most notably at the Red Hill zone, a largely untested target 300 metres southwest of the main deposit.

Red Hill is believed to be the root zone of the main deposit and is open along strike in both directions and at depth.

In all, the El Creston site covers 180 sq. km, and beyond Red Hill and the main Creston deposit, contains exploration targets defined by molybdenum geochemical anomalies and advanced, space-borne thermal emission and reflection radiometer signatures.

During the summer, Georgia significantly expanded its land stake around Creston by gaining title for the Metzli 4 claim — a claim that now accounts for 155 sq. km. of El Creston.

Georgia officially acquired El Creston with its takeover of Creston Mining at the end of May.

It paid US$20.2 million, issued 15.9 million common shares and 7.9 million warrants, and granted 600,000 stock options to the vendors.

The vendors have also retained a 3% net profit interest in the property. In addition, Georgia will pay up to US$1.5 million as a finder’s fee.

The El Creston acquisition came with a database of 66 drill holes, largely thanks to work done by Amax and Industrias Peoles in the 1970s and early 1980s. During that period, an internal feasibility study was completed.

Georgia has 118 million shares outstanding. Its shares recently traded at 41 in a 52-week range of 14-$1.21.