The Fire Tower Zone is situated in the southeastern part of the Mount Pleasant property (see inset map on Geology page). The zone first became active from 1983 to 1985, when it produced 1 million tonnes of ore containing approximately 2,000 tonnes of concentrate grading 70% WO3.
The Fire Tower Zone hosts two primary subzones, known as the West Fire Tower and the North Fire Tower. Both subzones contain significant resources of tungsten and molybdenum, with measurable percentages of bismuth. The zone also hosts the # 7 Tin Lode subzone, an anomalous concentration of indium-bearing tin ore that has yielded assays of up to 300 g/t In.
Resource Estimate. The following table shows the latest estimate of mineral resources in the Fire Tower Zone. These figures are from the 2008 study by Dunbar et al. (referenced below) and are fully compliant with National Instrument 43-101, Standards of Disclosure for Mineral Projects.
Mine Plan. The mine plan for the Fire Tower Zone stipulates using the vertical crater retreat method to remove rock, in combination with an underground primary crusher and a conveyor to surface.
Production Statistics. The mine will produce a total of 9.46 million tonnes of ore during the first twelve years of operation. Adex will subsequently complete the extraction of the remaining 4.84 million tonnes. The mill will process tungsten and molybdenum products, as summarized in the following table.
Financials. According to the projected mine plan and production statistics, the Fire Tower Zone will achieve a pre-tax Internal Rate of Return (IRR) of 27% over its initial twelve years of operation. The following table shows additional financial information for the Fire Tower Zone (figures from the 2008 scoping study by Aker Metals).
Exploration and Development provides information about recent development work on this zone.
Development Programs. As part of its updated development strategy, Adex is planning for the Fire Tower Zone to be the first to reach production. Restarting production at the Fire Tower Zone supports the company's desire to bring the Mount Pleasant Mine into production quickly and efficiently as possible. With strong tungsten markets, the Fire Tower Zone offers a longer mine life and less risk because the geology, mining and metallurgy are all well understood as it was previously mined by Billiton exploration Canada back in the mid-80s. Metallurgical feasibility testing has commenced at the Fire Tower Zone, which is required to re-start production. Testing is expected to be completed in the third quarter of 2012 and production in early 2015.
References Cited
A technical review of the Mount Pleasant property, including an updated mineral resource estimate on the Fire Tower Zone, southwestern New Brunswick, for Adex Mining Inc. 2008. By P. Dunbar, D. El-Rassi and J.S. Rogers. Report prepared by Watts, Griffis and McOuat and SRK Consulting, December 1, 2008, 139 p.
Mount Pleasant Fire Tower Zone scoping study. 2008. By Aker Metals, a division of Aker Solutions Canada Inc., November 4, 2008, 286 p., including appendices.
The Fire Tower Zone hosts two primary subzones, known as the West Fire Tower and the North Fire Tower. Both subzones contain significant resources of tungsten and molybdenum, with measurable percentages of bismuth. The zone also hosts the # 7 Tin Lode subzone, an anomalous concentration of indium-bearing tin ore that has yielded assays of up to 300 g/t In.
Resource Estimate. The following table shows the latest estimate of mineral resources in the Fire Tower Zone. These figures are from the 2008 study by Dunbar et al. (referenced below) and are fully compliant with National Instrument 43-101, Standards of Disclosure for Mineral Projects.
|
Subzones |
Tonnes |
WO3 |
MoS2 |
As |
Bi |
|
Indicated |
| ||||
|
West Fire Tower |
9,148,900 |
0.32 |
0.21 |
0.29 |
0.04 |
|
North Fire Tower |
4,340,100 |
0.35 |
0.20 |
1.15 |
0.09 |
|
Total |
13,489,000 |
0.33 |
0.21 |
0.57 |
0.06 |
|
Inferred |
| ||||
|
West Fire Tower |
831,000 |
0.26 |
0.20 |
0.21 |
0.04 |
|
North Fire Tower |
10,700 |
0.26 |
0.17 |
0.26 |
0.05 |
|
Total |
841,700 |
0.26 |
0.20 |
0.21 |
0.04 |
Note: Reported at a cutoff of 0.3% WO3 equivalent grade. WO3 equivalent % = WO3 % + 1.5 x MoS2 %.
Mine Plan. The mine plan for the Fire Tower Zone stipulates using the vertical crater retreat method to remove rock, in combination with an underground primary crusher and a conveyor to surface.
Production Statistics. The mine will produce a total of 9.46 million tonnes of ore during the first twelve years of operation. Adex will subsequently complete the extraction of the remaining 4.84 million tonnes. The mill will process tungsten and molybdenum products, as summarized in the following table.
|
|
Tungsten |
Molybdenum |
|
In the Mill |
WO3 |
MoS2 |
|
Feed grade |
0.33% |
0.21% |
|
Concentrate grade |
30% |
80% |
|
Metal recovery |
82% |
76% |
|
Final Products |
Ammonium paratungstate |
MoS2 |
|
Total production |
1,900 t/y |
1,100 t/y |
|
Estimated revenue |
$40 million |
$52 million |
|
Price in $US/kg |
21.5 |
51 |
|
Current price |
55.00 |
42.50 |
Financials. According to the projected mine plan and production statistics, the Fire Tower Zone will achieve a pre-tax Internal Rate of Return (IRR) of 27% over its initial twelve years of operation. The following table shows additional financial information for the Fire Tower Zone (figures from the 2008 scoping study by Aker Metals).
|
Initial mine life |
12 years |
|
Mill production rate |
2,400 t/day |
|
Pre-production capital |
$130 million |
|
Annual revenue |
$92 million |
|
Annual operating cost |
$49 million |
|
Annual cash flow |
$46 million |
|
Pre-tax net present value @ 8% |
$164 million |
|
Pre-tax internal rate of return |
27% |
Exploration and Development provides information about recent development work on this zone.
Development Programs. As part of its updated development strategy, Adex is planning for the Fire Tower Zone to be the first to reach production. Restarting production at the Fire Tower Zone supports the company's desire to bring the Mount Pleasant Mine into production quickly and efficiently as possible. With strong tungsten markets, the Fire Tower Zone offers a longer mine life and less risk because the geology, mining and metallurgy are all well understood as it was previously mined by Billiton exploration Canada back in the mid-80s. Metallurgical feasibility testing has commenced at the Fire Tower Zone, which is required to re-start production. Testing is expected to be completed in the third quarter of 2012 and production in early 2015.
References Cited
A technical review of the Mount Pleasant property, including an updated mineral resource estimate on the Fire Tower Zone, southwestern New Brunswick, for Adex Mining Inc. 2008. By P. Dunbar, D. El-Rassi and J.S. Rogers. Report prepared by Watts, Griffis and McOuat and SRK Consulting, December 1, 2008, 139 p.
Mount Pleasant Fire Tower Zone scoping study. 2008. By Aker Metals, a division of Aker Solutions Canada Inc., November 4, 2008, 286 p., including appendices.