Adanac Molybdenum Corporation (TSX: AUA) (Pink Sheets: AUAYF) (Frank: A9N) is pleased to announce the start of its 2007 drill program at its Ruby Creek molybdenum property, near Atlin, British Columbia. The Company plans diamond drilling of about 7000 meters in fourteen holes around the periphery of the Ruby Creek molybdenum deposit, which currently has a National Instrument 43-101 compliant “measured and indicated” resource of 212.9 million tonnes grading 0.063% Mo at a 0.04% Mo cut-off (News Release, March 20th, 2007). This drill program has the potential to add considerably to the resource and provide valuable information for future development planning.
The deposit underlies the floor of a cirque at the head of Ruby Creek. It is open to the northwest, north of a major fault (Adera Fault) and to the southwest, near the head of the creek. It also extends beyond the south wall of the proposed pit, as currently defined by Golder Associates Ltd. The holes are being drilled for exploration purposes and will provide insight into the size, shape and grade of the deposit well beyond the confines of the proposed open pit.
As planned, four angled holes will be drilled to the northwest to test for down-dropped mineralization north of the Adera Fault. They will be collared northeast and southwest of an earlier (-50 degree) hole, A-04-310, that first encountered mineralization at 191 meters and then assayed 0.108% Mo over the next 110 meters to the end of the hole. The 2007 holes will test for mineralization 250 meters out from either side of the known intercept.
Six holes will be drilled southwest of the western edge of the proposed open pit. They will be sited to test for mineralization around A-06-369, a vertical hole that assayed 0.114% Mo over 76 meters from a depth of 258 meters. The mineralization is in fractured coarse-grained granite impregnated with fine-grained granite dykes a short distance above a previously unknown, apparently un-mineralized intrusion. The new holes will attempt to track the mineralized zone through the pass at the head of Ruby Creek into Boulder Creek, which adjoins to the south and west.
A further four holes are scheduled to be drilled in the Boulder Creek drainage. Three will be angled towards Ruby Creek and will test for continuation of the Ruby Creek mineralized blanket about 1 kilometer south of the proposed open pit. They will be located in an area where coarse-grained wolframite (tungsten mineralization) occurs at surface in quartz veins exposed in old trenches. The fourth hole is to be located further south in the Boulder Creek drainage. It will test for molybdenum, tungsten and tin in a skarn showing on the southern contact of the granite intrusion.
The Ruby Creek deposit has an open pit reserve of 143.7 million tonnes grading 0.059% Mo at 0.04% Mo cut-off and 0.95 (waste) to 1.0 (ore) strip ratio. This is sufficient to feed the proposed mine for over twenty years at a rate 20,000 tonnes per day (News Release, January 16th, 2007). The proposed mine is in the late stages of the British Columbia environmental assessment process.
This press release was prepared by Robert H. Pinsent, Ph.D., P.Geo., a Qualified Person pursuant to National Instrument 43-101.
On Behalf of Management
ADANAC MOLYBDENUM CORPORATION
Michael MacLeod,
President & Chief Executive Officer
