Tenajon excited about Newfoundland molybdenum

Vancouver – From one coast of Canada to the other Tenajon Resources‘ (TJS-V) drills have been hitting good molybdenum grades. Following up on this spring’s strong molybdenum resource estimate at its Ajax property in northern British Columbia, Tenajon has released promising numbers for its Moly Brook site 5,000 km away on the south coast of Newfoundland about 2.5 km from Grey River.

So far the company has results from the first two drill holes of a completed 6,100-metre, 14 hole, 2008 drilling program that adds to its 12 holes from 2007. The company has outlined a mineralized body 450 metres wide and 750 metres long that extends to a depth over 300 metres and is open on strike and dip.

The latest holes tested the main zone’s western extent and follow-up on a mineralized zone Tenajon hit in hole 5 last year. Starting from surface, hole 13 cut a 409.1-metre section averaging 0.061% molybdenum that included 30.5 metres at 0.119% molybdenum. On the eastern extent, hole 14 hit a 250.5-metre interval starting at 87.5 metres depth and averaging 0.072% molybdenum, including 76.5 metres at 0.131% molybdenum.

The results buttress similar molybdenum grades encountered throughout the 2007 season that include a 103.7-metre interval in hole 6 averaging 0.046% molybdenum starting 197 metres downhole in the north end of the zone and a 274-metre interval in hole 8 grading 0.085% molybdenum from 30.8 metres depth in the south.

To boot, historic drill results have encountered molybdenite 2 km south of the Moly Brook zone, which is a series of north trending, subvertical sheeted veins and fracture faces similar to the deposit found at Thompson Creek Metal’s Endako Mine in B.C.

Tenajon president Bruce McLeod says he likes what he sees. “We knew after last year we were on to something that had all the signs of an open-pittable deposit,” McLeod says. The results from this season only add to his expectations for the property and excitement over molybdenum.

When Tenajon first acquired the Ajax property in 1996, the company didn’t know it was setting itself up for a future focused on the mineral. At the time the price was low and Tenajon hadn’t predicted its rise.

But with the spike in price, and the 100% acquisition of Moly Brook from prospectors for $20,000 and 350,000 shares, the company has since spun off its gold properties and homed in on its three molybdenum properties: Ajax and Burn in B.C. and Moly Brook in Newfoundland.

“I don’t think we could put them any further apart,” jokes McLeod of the distance between the properties, adding – if mineralization were to prove economic at both sites – “I don’t think we could truck those ores [to the same processing facility.]”

And although Tenajon is further along with exploration at Ajax, having completed a resource estimate for it this winter, the Moly Brook property is growing on him. “Both of them are close to tide water,” he explains, but in terms of infrastructure “Moly Brook is better.”

So far the company has spent $600,000 on the camp at Moly Brook, where it has two drill rigs working, and completed a land access trail from Grey River. Without the all terrain vehicle trail getting in had been an issue at a site on Canada’s foggiest length of coast.

He explains: “The summers in Newfoundland are gorgeous but interspersed with week-at-a time, no-fly-fog.” Grounded helicopters meant decreased productivity.

“The only other issue right now is barge service in that part of the world,” he says. Apart from Burgeo, the few communities dotting the south coast of Newfoundland do not have roads running to them and are serviced by ferries.

As for the future, McLeod expects to release a resource estimate by the first quarter of 2009, although he hopes it will come sooner. But he says, “We prefer to under-promise and over-deliver.”

Tenajon’s 52-week share price ranges from 38 to $1.08; the company has 55.8 million shares issued. Its share price slid 2 to close at 40 on news of the drill results from Moly Brook.