Adex Mining Inc. is a Canadian junior mining company focused on developing its Mount Pleasant Mine property in New Brunswick. The company is led by an experienced Board of Directors and a highly technical project management team.
The Mount Pleasant property includes 102 contiguous mineral claims covering approximately 1,600 hectares (4,000 acres). These concessions host two highly promising mineral deposits including the past-producing tungsten-molybdenum resource and a more recently defined tin-indium-zinc resource.
The tungsten-molybdenum Fire Tower Zone contains a National Instrument 43-101 compliant resource estimate of 13,489,000 tonnes in the "indicated" category at 0.33% tungsten (WO3) and 0.21% molybdenum (MoS2), as well as 841,700 tonnes in the "inferred" category at 0.26% tungsten and 0.20% molybdenum, according to a resource estimate completed in October 2008 by Watts, Griffis and McOuat Limited (WGM) and SRK Consulting (see news release dated October 23, 2008).
In 2008, a scoping study of the Fire Tower Zone was completed by Aker Metals, a division of Aker Solutions Canada Inc. Results from the scoping study reveal that the Fire Tower Zone is financially robust and the operation is projected to generate approximately C$1.1 billion in revenue over a 13-year mine life. Based on the production of ammonium paratungstate and molybdenum, the study indicated a pre-tax internal rate of return estimated at 27.1%. Similarly, the net present value of the Fire Tower Zone, using a discount rate of 8%, is C$164.6 million and C$83.7 million on a pre-tax and after-tax basis, respectively. For more information, please see news release dated October 30, 2008, or visit the Commodity Info page to read the Fire Tower Zone Technical Report dated August 1, 2006.
The tin-indium-zinc North Zone contains a National Instrument 43-101 compliant resource estimate of 10,882,000 tonnes in the "indicated" category at 0.43% tin (Sn), 67.8 grams per tonne (g/t) indium (In), and 0.67% zinc (Zn), as well as 7,603,000 tonnes in the "inferred" category at 0.22% tin, 74.6 g/t indium and 0.99% zinc, according to a resource estimate completed in April 2009 by WGM (see news release dated April 6, 2009).
A Preliminary Assessment was also completed on the North Zone in December 2009 (see news release dated December 9, 2009). It indicated that there are two viable production options for the North Zone, including the production of tin concentrate, indium sponge and zinc metal and the production of tin concentrate and zinc-indium concentrate. Based on a 10-year project life and production rate of 850 tonnes per day, the Preliminary Assessment shows pre-tax internal rates of return of 28.87% for the tin concentrate, indium sponge and zinc metal production option and 23.49% for the tin concentrate and zinc-indium concentrate production option. The after-tax net present value for the production of tin concentrate, indium sponge and zinc metal is $54.2 million and $21.5 million for the production of tin concentrate and zinc-indium concentrate. Full details regarding the Preliminary Assessment of the North Zone can be found in the Technical Report dated January 25, 2010 on the Commodity Info page.
In the early 1980s, the Mount Pleasant property included an active tungsten mine, operated by Billiton Exploration Canada Ltd. In 1985, after only about 18 months of operations, the mine was closed due to rapid falling tungsten metal prices. Adex aquired the property in 1995 and conducted a detailed evaluation of bio-leaching the tin-indium deposits, including a feasibility study completed by Kvaerner Metals. Despite promising initial results, Adex chose to place the property on care and maintenance in 1997 due to economic uncertainty in the mining industry.
In recent years, demand for tungsten, molybdenum, tin and indium has risen, fuelled by the development of new technologies and rapid growth in the developing world. Consequently, prices for these commodities have improved in recent years.
The Mount Pleasant property includes 102 contiguous mineral claims covering approximately 1,600 hectares (4,000 acres). These concessions host two highly promising mineral deposits including the past-producing tungsten-molybdenum resource and a more recently defined tin-indium-zinc resource.
The tungsten-molybdenum Fire Tower Zone contains a National Instrument 43-101 compliant resource estimate of 13,489,000 tonnes in the "indicated" category at 0.33% tungsten (WO3) and 0.21% molybdenum (MoS2), as well as 841,700 tonnes in the "inferred" category at 0.26% tungsten and 0.20% molybdenum, according to a resource estimate completed in October 2008 by Watts, Griffis and McOuat Limited (WGM) and SRK Consulting (see news release dated October 23, 2008).
In 2008, a scoping study of the Fire Tower Zone was completed by Aker Metals, a division of Aker Solutions Canada Inc. Results from the scoping study reveal that the Fire Tower Zone is financially robust and the operation is projected to generate approximately C$1.1 billion in revenue over a 13-year mine life. Based on the production of ammonium paratungstate and molybdenum, the study indicated a pre-tax internal rate of return estimated at 27.1%. Similarly, the net present value of the Fire Tower Zone, using a discount rate of 8%, is C$164.6 million and C$83.7 million on a pre-tax and after-tax basis, respectively. For more information, please see news release dated October 30, 2008, or visit the Commodity Info page to read the Fire Tower Zone Technical Report dated August 1, 2006.
The tin-indium-zinc North Zone contains a National Instrument 43-101 compliant resource estimate of 10,882,000 tonnes in the "indicated" category at 0.43% tin (Sn), 67.8 grams per tonne (g/t) indium (In), and 0.67% zinc (Zn), as well as 7,603,000 tonnes in the "inferred" category at 0.22% tin, 74.6 g/t indium and 0.99% zinc, according to a resource estimate completed in April 2009 by WGM (see news release dated April 6, 2009).
A Preliminary Assessment was also completed on the North Zone in December 2009 (see news release dated December 9, 2009). It indicated that there are two viable production options for the North Zone, including the production of tin concentrate, indium sponge and zinc metal and the production of tin concentrate and zinc-indium concentrate. Based on a 10-year project life and production rate of 850 tonnes per day, the Preliminary Assessment shows pre-tax internal rates of return of 28.87% for the tin concentrate, indium sponge and zinc metal production option and 23.49% for the tin concentrate and zinc-indium concentrate production option. The after-tax net present value for the production of tin concentrate, indium sponge and zinc metal is $54.2 million and $21.5 million for the production of tin concentrate and zinc-indium concentrate. Full details regarding the Preliminary Assessment of the North Zone can be found in the Technical Report dated January 25, 2010 on the Commodity Info page.
In the early 1980s, the Mount Pleasant property included an active tungsten mine, operated by Billiton Exploration Canada Ltd. In 1985, after only about 18 months of operations, the mine was closed due to rapid falling tungsten metal prices. Adex aquired the property in 1995 and conducted a detailed evaluation of bio-leaching the tin-indium deposits, including a feasibility study completed by Kvaerner Metals. Despite promising initial results, Adex chose to place the property on care and maintenance in 1997 due to economic uncertainty in the mining industry.
In recent years, demand for tungsten, molybdenum, tin and indium has risen, fuelled by the development of new technologies and rapid growth in the developing world. Consequently, prices for these commodities have improved in recent years.
| Average 2003 Price | Current Price* | |
|---|---|---|
|
Tungsten (WO3 ore) |
~US$4,535/t |
US$14,685/t |
|
Molybdenum (oxide) |
~US$8.16/lb |
US$13.40-$14.00/lb |
|
Tin |
~US$4.88/kg |
US$16.87/kg |
|
Indium (ingot) |
~US$170/kg |
US$640/kg |
* As at June 15, 2010
Sources: US Geological Survey, The Northern Miner
Sources: US Geological Survey, The Northern Miner
In the summer of 2007, Adex moved to reactivate the Mount Pleasant project due to increasing metal prices, particularly indium and tungsten. Since 2007, the company has completed a number of major steps in evaluating the property with the ultimate goal achieving commercial metal production. Development work completed to date includes a 13,000 metre drill program, metallurgical test programs and a scoping study to assess production strategies at the mine.
In addition, Adex has upgraded the existing infrastructure at the Mount Pleasant property, which includes a tailings impoundment facility, well-preserved buildings and some processing equipment. This infrastructure is expected to significantly reduce the capital costs required to recommence commercial operations at the mine site.
Adex is led by President and Chief Executive Officer, J. Errol Farr (CMA). Mr. Farr was formerly Adex’s Chief Financial Officer from 1998 to 2009. He brings extensive experience in corporate finance, accounting and operations, and public company management to his role at Adex.
Adex's Technical Team includes the Company's founding President William B. Burton, who is an experienced geologist and who now sits as an independent Director of Adex. In New Brunswick, the Senior Technical Team, comprises Victor Hendricken, Operations Manager; J. Dean Thibault, Senior Process Chemical Engineer/Project Manager for Metallurgy and Environment Planning; Trevor Boyd (PhD, PGeo), Senior Geological Consultant/Project Manager for Exploration and Drilling; Gustaaf Kooiman; and Andrew Hara (PEng), Principal of Hana-Mining Enterprises Inc.