Adex Announces Plans for North Zone Development in 2010
08 January 2010 - 1:07AM
Marketwired
Adex Mining Inc. ("Adex" or the "Company") (TSX VENTURE: ADE) is
pleased to announce its development plans for 2010 at its Mount
Pleasant Mine Property ("Mount Pleasant" or the "Property"),
located in southwestern New Brunswick Canada. The Property hosts
the tungsten-molybdenum bearing Fire Tower Zone ("FTZ") and the
tin-indium-zinc bearing North Zone ("NZ"). The FTZ is the site of a
past-producing tungsten-molybdenum underground mining operation
that was active between 1983 and 1985.
Adex is set to have another busy year in 2010 following the
completion of its successful FTZ scoping study in 2008 and its
equally successful NZ Preliminary Assessment ("PA") in 2009. The
2008 FTZ scoping study arrived at a pre-tax Internal Rate of Return
("IRR") of 27.1%, while the North Zone PA showed a 28.87% pre-tax
IRR for tin concentrate, indium sponge and zinc metal production
and a 23.49% IRR for tin concentrate and zinc-indium concentrate
production.
The Company recently completed a flow-through financing in
excess of $1 million the proceeds of which it intends to use to
undertake two separate pilot plant programs: (i) concentrate
production by conventional flotation and (ii) metals production
using hydrometallurgical processes. Adex has a total of
approximately $3 million in cash, including the proceeds of the
flow-through financing.
The following table shows the projected timelines for various
aspects of the Company's plans to bring the NZ into production.
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Project - North Zone Production Timeline
------------------------------------------------------- --------------------
Pilot plant program - production of tin and indium-zinc Winter - Summer 2010
concentrates
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Pilot plant program - production of indium sponge and Winter - Summer 2010
zinc metal
------------------------------------------------------- --------------------
Concluding concentrate and metal off-take sales Winter - Summer 2010
contracts
------------------------------------------------------- --------------------
Drilling - confirmation drilling of zones of inferred Spring - Summer 2010
resources in order to upgrade to indicated resources
------------------------------------------------------- --------------------
Definitive feasibility study Summer - Fall 2010
------------------------------------------------------- --------------------
Production decision Fall 2010
------------------------------------------------------- --------------------
Adex believes it will be well positioned to begin equipment
purchase and installation, and mine development - pending positive
results from its definitive feasibility study, government
regulatory approvals and project financing - by early 2011.
Concentrator production is targeted for October/November 2011.
Pilot Programs
The concentrate pilot program is a two stage effort beginning
with bench scale work to confirm parameters for producing a
marketable indium-bearing zinc concentrate and a saleable tin
concentrate and culminating in pilot operations continuously
producing both zinc/indium and tin concentrates; the
hydrometallurgical pilot program focuses on producing zinc metal
and high grade indium sponge from indium bearing zinc concentrate.
The concentrate program will begin in early January and the
hydrometallurgical pilot program will begin in early February. Each
is scheduled to be completed by mid-summer 2010.
Concentrate and Metal Off-Take Sales Contracts
Adex has commenced negotiation of letters of intent for the sale
of its indium sponge and for the sale of its tin concentrate. The
successful conclusion of these letters of intent will open the door
to the negotiation of sales contracts and will influence the
production decision expected by late fall 2010. In addition,
details are being finalized on a letter of intent for the sale of
Adex's zinc/indium concentrate, including an appropriate pay factor
for indium.
Drilling Program
Adex intends to carry out a 2000 metre, half million dollar
drilling program which will focus on upgrading the inferred portion
of the NZ resources to the indicated category. The drilling program
will result in a revision to the GEMCOM solid model of the NZ and
an updated NI 43-101 resource estimation. The drilling program is
scheduled to begin in late spring 2010.
Definitive Feasibility and Production Decision
A definitive feasibility study is scheduled to commence in
mid-summer 2010 and will initially run concurrently with the final
stages of the pilot programs. The definitive feasibility study is
expected to result in a production decision during the latter half
of 2010.
ABOUT ADEX
Adex Mining Inc. is a Canadian junior mining company with an
experienced management team. The Company is focused on developing
its flagship Mount Pleasant Mine property, a multi-mineral project
that is host to promising tungsten-molybdenum and
tin-indium-zinc-copper mineralization. Located in Charlotte County,
New Brunswick, the Mount Pleasant Mine property is situated
approximately 80 kilometres south of Fredericton, the provincial
capital, and is 65 kilometres from the United States border. The
common shares of Adex trade on the TSX Venture Exchange under the
stock symbol "ADE." Technical and business information regarding
Adex's Mount Pleasant property is available on SEDAR at
www.sedar.com and the Company's website at www.adexmining.com.
No securities commission or regulatory authority has approved or
disapproved the contents of this press release.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute
"forward-looking" statements which involve known and unknown risks,
uncertainties and other factors which may cause actual results,
performance or achievements of Adex, its subsidiary or the industry
in which they operate to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. When used in this press release, the
words "estimate", "believe", "anticipate", "intend", "expect",
"plan", "may", "should", "will", the negative thereof or other
variations thereon or comparable terminology are intended to
identify forward-looking statements. Such statements reflect the
current expectations of the management of Adex with respect to
future events based on currently available information and are
subject to risks and uncertainties that could cause actual results,
performance or achievements to differ materially from those
expressed or implied by those forward-looking statements. These
risks and uncertainties are detailed from time to time, including,
without limitation, under the heading "Risk Factors", in reports
filed by Adex with the Alberta, British Columbia and Ontario
Securities Commissions which are available at www.sedar.com and to
which readers of this press release are referred for additional
information concerning Adex, its prospects and the risks and
uncertainties relating to Adex and its prospects. New risk factors
may arise from time to time and it is not possible for management
to predict all of those risk factors or the extent to which any
factor or combination of factors may cause actual results,
performance and achievements of Adex to be materially different
from those contained in forward-looking statements. Although the
forward-looking statements contained in this press release are
based upon what management believes to be reasonable assumptions,
Adex cannot assure investors that actual results will be consistent
with these forward-looking statements. Given these risks and
uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual results.
The forward-looking information contained in this press release
is current only as of the date of the press release. Adex does not
undertake or assume any obligation to release publicly any
revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Adex Mining Inc. J. Errol Farr, CMA President, Chief
Executive Officer and Director 1-866-508-2339 (ADEX)
investorrelations@adexmining.com www.adexmining.com
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