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Toronto -- January 7, 2010 – Adex Mining Inc. ("Adex" or the "Company") (TSX-V: 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
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Timeline
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Pilot plant program – production of tin and indium-zinc concentrates
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Winter – Summer 2010
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Pilot plant program – production of indium sponge and zinc metal
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Winter – Summer 2010
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Concluding concentrate and metal off-take sales contracts
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Winter – Summer 2010
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Drilling – confirmation drilling of zones of inferred resources in order to upgrade to indicated resources
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Spring – Summer 2010
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Definitive feasibility study
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Summer – Fall 2010
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Production decision
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Fall 2010
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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.
FOR FURTHER INFORMATION PLEASE CONTACT:
J. Errol Farr, CMA
President, Chief Executive Officer and Director
Adex Mining Inc.
1-866-508-2339 (ADEX)
Email: [email protected]
Website: www.adexmining.com
No securities commission or regulatory authority has approved or disapproved the contents of this press release.
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.
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