Adanac Molybdenum Corporation (AUA: TSX.V, Pink Sheets: AUAYF, Frank: A9N) is pleased to announce that it has received the updated Mineral Resource Estimate from N. Tribe & Associates Ltd.(“NTA”); prepared in accordance with the requirements described in National Instruments 43-101 “Standards of Disclosure for Mineral Projects”.
The B & C Springs Property, consists of 91 unpatented lode claims and is located near the southern end of the Paradise Peak Range some 50 km south of Gabbs, Nevada, in Nye County, two hours drive east of Reno NV. The property covers 722.64 ha., and the deposit is a skarn or hornfels altered limestone. The mineralization consists of molybdenum and copper and is a blind deposit with very little evidence on surface to indicate the mineralization at depth. The significant grades are usually between 400 feet (130 meters) and 1000 feet (300 meters ) in depth. There is some evidence of a quartz monzonite at depth and there are several thrust planes which often, but not always, cap the mineralization. The deposit is undefined (open) to the west and the east as well as the north.
There are 65 diamond drill holes drilled to date with geology and partial assay logs available on 56 of these.
From these data an indicated mineral resource estimate was calculated, using a price of US$25 per pound for molybdenum, and a price of US$4 per pound for copper with 80% recovery for the molybdenum and 70% recovery for the copper.
For an open pit mining scenario a cut off grade of $10 per tonne was used. The results are 96,073,706 tonnes of indicated mineral resource at a recoverable grade of 0.048% molybdenum (0.48 kg/tonne) (1.06 lbs/tonne), and 0.068% copper (0.68 kg/tonne) (1.50 lbs/tonne) for 100.9 million pounds of contained molybdenum and 144.0 million pounds of contained copper.
For an underground mining scenario using a cut-off grade of $75 per tonne, the results are 2,582,350 tonnes of indicated mineral resource at a recoverable grade of 0.234% molybdenum and 0.334% copper.
It is concluded that a deposit of these dimensions and grade warrants further work. NTA recommends 33 drill holes be drilled to explore the limits of the known mineralization and to explore the indicated extensions to the north and west. An additional 304 fill in drill holes are recommended to fully define the deposit.
Adanac owns 100% of the property which is subject to a 1.25% NSR.
Adanac’s focus is the Ruby Creek Molybdenum Project and open pit moly mine situated 24 km North east of Atlin, BC which will operate at 20,000 tonnes per day for 20 plus years and have an overall foot print of 830 hectares. The company believes the proposed mine is an ethically sound project that will minimize any long term environmental effects and maximize socio-economic benefits to the local community, the Taku River Tlingit (TRT) and the Government of British Columbia. The project is currently in the detailed engineering and equipment procurement phase and is progressing through the environmental assessment process which should be completed during the second quarter this year.
The price of Moly on the world markets reached US$30.25 per pound in the past two weeks.
This press release was prepared by Mr. Norm Tribe, P.Eng, a Qualified Person pursuant to National Instrument 43-101.
On Behalf of Management
ADANAC MOLYBDENUM CORPORATION
Larry W. Reaugh,
Executive Chairman
