Ruby Creek Project-Exploration Update
posted on Jan 20, 2009 08:59AM
|January 20, 2009|
|Adanac Molybdenum Corporation: Ruby Creek Project-Exploration Update|
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 20, 2009) -
Adanac Molybdenum Corporation ("Adanac or the Company") (TSX:AUA)(PINK SHEETS:AUAYF)(FRANKFURT:A9N) announces the results for the final 13 holes from its Ruby Creek 2007/2008 diamond drilling program.
2007/2008 Diamond Drill Program
The program includes 60 holes from AD-372 to AD-341 including 10 condemnation holes:
AD-372 to AD-374 results previously reported on September 13, 2007 AD-375 to AD-383 results previously reported on July 10, 2008 AD-384 to AD-393 condemnation holes AD-394 to AD-402 results previously reported on September 30, 2008 AD-403 to AD-409 results previously reported on October 21, 2008 AD-410 results reported in this news release AD-411 to AD-416 results previously reported on September 30, 2008 AD-417 to AD-419 results reported in this news release AD-420 to AD-422 results previously reported on October 21, 2008 AD-423 to AD-431 results reported in this news release
The Ruby Creek molybdenum deposit is a stockwork vein occurrence and true widths are unknown at this time.
13 Hole Update in this Release
The Attachment 3 drill-plan shows the 13 holes for which assay determinations are reported in this news release including holes AD-410, AD-417 to AD-419 and AD-423 to AD-431. Of these, all but three (AD-417 to AD-419) were collared within the Company's, feasibility-defined, open pit surface outline.
Drill-hole AD-410 was collared in the north wall of the pit and was angled to the southeast and assisted in defining the location of the Adera fault.
Holes AD-423 to AD-427 (inclusive) have the same orientation and were collared to the south of the Adera fault to the north of Ruby Creek water feature. The holes were used to explore for mineralization below the proposed pit floor of the currently defined open pit. Drill-hole AD-428 was positioned south of the Ruby Creek water feature and was drilled at a moderate angle to the northwest, to determine the thickness of the mineralized blanket in the southwest part of the deposit and to locate an intrusion contact.
AD-429, AD-430 and AD-431 are vertical drill-holes collared within the boundaries of the proposed open pit south of the Ruby Creek water feature and were drilled to explore for mineralization in a previously relatively poorly drilled fault block.
Significant Intercepts Include:
Hole AD-423 contains 292.61 meters of 0.078% Mo
Hole AD-425 contains 176.78 meters of 0.113% Mo
Hole AD-427 contains 185.93 meters of 0.099% Mo
Hole AD-430 contains 134.11 meters of 0.067% Mo
These and other previously reported intercepts confirm the presence of a substantial thickness of higher grade mineralization in the proposed "starter pit" general area, at shallow depth.
Drill-holes AD-417, AD-418 and AD-419 were, respectively, drilled vertically, to the northwest and to the northeast from a single pad located north of the Adera fault. These step-out holes were designed to test for higher grade mineralization to the southwest of prior exploration drilling and particularly inclined hole AD-416 which intersected 182.88 meters of 0.097% Mo including 15.25 meters of 0.715% Mo.
Hole AD-417 contains 57.91 meters of 0.065% Mo and 42.67 meters of 0.249% Mo
Hole AD-418 contains 33.53 meters of 0.035% Mo
Hole AD-419 contains 3.05 meters of 0.216% Mo and 79.25 meters of 0.042% Mo
The 2007/2008 program is expected to add significantly to mineral resources and the results confirm that the deposit is open to the north and west and that there is considerable potential for higher grade mineralization at depth near the head of the Ruby Creek valley.
Future News Releases
In 2006, Golder Associates Ltd calculated that the Ruby Creek deposit contained a NI 43-101 compliant measured and indicated mineral resource of 212.9 million tonnes of 0.063% Mo at a 0.04% cut-off. Adanac has re-engaged Golder Associates Ltd and over the next several weeks they are expected to include the 2007/2008 drill program results in the Ruby Creek block model data set and will recalculate the mineral resource. The results will be released when they are available and Adanac expects that the new mineral resources will be significantly increased when the 2007/2008 drill program results are included.
Peter R Jones, Adanac Chairman and CEO, said, "The higher Molybdenum grades in the most recent 13 hole suite is impressive and together with prior results should add considerably to the new mineral resource recalculation by Golder's." He went on to say, "Adanac is indebted to Robert Pinsent PhD., P. Geo. especially for the exploration work he has done over the last two years and the excellent results achieved."
This news release was reviewed by Robert Pinsent, PhD., P. Geo., a qualified person recognized under National Instrument 43-101.
1. Ruby Creek 13 hole update table December 10, 2008
2. Ruby Creek final 60 hole table 2007/2008 summary to December 10, 2008
3. Ruby Creek 50 exploration hole plan (excluding condemnation holes)
If a reader is unable to activate the link to attachments then please visit the Adanac website at www.adanacmoly.com where the attachments are included as part of the news release.
About Adanac Molybdenum Corporation
Adanac Molybdenum Corporation is listed on the TSX and Frankfurt exchanges and owns the Ruby Creek Molybdenum Project in northern British Columbia. The Company has advanced the project through feasibility studies, a production decision and has previously ordered long-lead equipment, completed permitting for construction, constructed a road to the site and secured US$80 million in bridge financing.
Adanac Restructuring Process
Readers are reminded that, on December 19, 2008, Adanac obtained an Initial Order under the Companies' Creditors Arrangement Act (the "CCAA") as part of its intention to restructure its business, including primarily its debt. In that regard, Adanac has curtailed its business and ceased exploration and development at the Ruby Creek site. Accordingly, notwithstanding the exploration results described herein, the value of the Company's shares and the effect of the exploration results thereon are unknown. Readers are invited to read the other press releases issued by the Company concerning its CCAA proceedings, and to visit the website of KPMG Inc., the Monitor appointed in those proceedings, at: www.kpmg.ca/adanac.