El Creston

Overview


The El Creston molybdenum property is 100% owned by Mercator. The property, located in the State of Sonora, Mexico, is 175 kilometres south of the US Border and 145 kilometers northeast of the city of Hermosillo. The village of Opodepe is 4 km to the north. Access to the property is excellent, via paved highways and 22 kilometres of all weather gravel road.

Highlights include:
  • 2010 Preliminary Economic Assessment ("PEA") (1) indicates that the El Creston molybdenum-copper deposit has a US $561.9million net present value (8% after-tax), internal rate of return (after tax) of 22.3% and a capital cost payback of four years. The company is planning to prepare a NI 43-101 compliant feasibility study which will update the valuation of the project.
  • The mine will be an open pit, employing a conventional open pit truck shovel operation with a life of mine 0.96 to 1 strip ratio.
  • 2010 Resource estimate outlines Measured Resource of 56.3 million tonnes and Indicated Resource of 159.1 million tonnes, for a total of Measured and Indicated Resources of 215.4 million tonnes grading 0.071% molybdenum and 0.06% copper.
  • 13-year mine life with an average mill throughput of 50,000 tonnes per day
  • Excellent infrastructure including road access and available electrical power 42 kilometres away. In addition a custom molybdenum roaster is located at Cumpas 105 kilometres away.
  • Excellent upside potential with opportunities to enhance the economics of the project by increasing the overall resource, potentially adding revenue from silver, and by further optimization of the PEA.
(1) Metal Prices used were $15/lb Molybdenum and $2.60/lb Copper.

El Creston presentation - February 2013
Click here to view PDF (9.8MB)

Resources


The following table, as at December 2010, summarize the Measured and Indicated Resources as included in the December 2010 preliminary economic assessment study:

El Creston Resources

0.036% molybdenum equivalent cut-off
Resource Class Tonnes (million) Molybdenum % Copper % Molybdenum (m lbs) Copper (m lbs)
Measured 56.3 0.074 0.06 91.3 72.0
Indicated 159.1 0.070 0.06 244.2 209.0
Measured + Indicated 215.4 0.071 0.06 335.5 281.0


The mineral resources referred to herein have been estimated in a NI 43-101 technical report prepared for the Company in December 2010 by JDS Engineering and Mining ("JDS"). The modeling and estimate of the Mineral Resources for the El Creston property were done under the supervision of and prepared by Dr. Gilles Arseneau, PhD, P.Geo, an Independent Qualified Person as defined by NI 43-101. Mike Makarenko, P. Eng. of JDS, an Independent Qualified Person as defined by NI 43-101, is responsible for the conceptual optimized pit Resource calculations.

Technical Report


Preliminary Economic Assessment
El Creston Project
Opodepe, Sonora, Mexico
December 16, 2010
Click here to view PDF (13MB)

Photo Gallery

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Dave Visagie, P. Geo, the Company's Exploration Manager, a Qualified Person as defined by NI 43-101, supervised the preparation of and verified and approved the technical information in respect of the El Creston project contained on this website.  
Last updated: February 22, 2013
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