Adanac Molybdenum Corporation (TSX: AUA) (Pink Sheets: AUAYF) (Frank: A9N) has decided to slow down its on-site construction activities for the development of its Ruby Creek Molybdenum Project. The Company has no plans to de-mobilize any of the installed construction facilities or site development construction equipment. Moreover, the exploration drilling program that is currently underway to expand the near pit mineralization announced previously (September 13, 2007) will continue as planned through February and March.
The Company continues to aggressively advance the Project by focusing its resources on the detailed engineering and construction planning that is underway, and expediting of the long lead time processing and mining equipment. The minor schedule disruptions related to curtailing the winter site work program can be reasonably mitigated by good planning and higher productivities that can be achieved during the long summer daylight hours. Concentrating on those elements that are on the critical project development path is just good practice.
"The current financial market distress does not impact the real fundamentals of the Ruby Creek Project. The molybdenum price and demand are solid, and project costs are well controlled by the early ordering of the major pieces of process equipment. The Project remains economically sound and robust, environmentally sustainable, and socially acceptable.” says Michael MacLeod, President and CEO. “Since receipt of the Special Use Permit on November 7, 2007 and the Pre-Construction Mines Act Permit on December 21, 2007; upgrading the road to accommodate highway traffic, including installation of a bridge spanning Boulder Creek, from the Surprise Lake Bridge to the Project site has been completed."
Activities associated with securing all of the financing required to build the Project will be accelerating rapidly in early February. While the volatility and uncertainty currently plaguing the financial markets is problematic, the Company expects that the diligent financial ground work prepared by its team of highly experienced technical, legal, and financial advisors and investment houses; that has been underway since October 2007; will facilitate an expeditious closing. Terms and details of the financial arrangements will be released as they become available.
The Company is waiting for assays for a further eighteen holes and results will be released as they come available. Core assays are being carried out by Acme Analytical Laboratories Ltd. of Vancouver, BC.
A systematic program of condemnation drilling throughout the proposed mill-site and tailings impoundment area started in November and was completed over the winter. The drill holes show that the rocks underlying the area are essentially barren. It would appear the infrastructure will not impinge on any significant mineralization. The assays have not been released, but a report has been filed with the British Columbia Ministry of Energy, Mines and Petroleum Resources.
The drilling is contracted to Foraco Drilling Ltd. of Kamloops, B.C. and exploration is continuing. Adanac expects to complete an updated resource estimate sometime after the completion of the current drill program.
Adanac Molybdenum Corporation is engaged in the exploration and development of mines to produce molybdenum and other ferro-alloy metals. Its flagship property is the Ruby Creek molybdenum project located near Atlin, B.C. The property contains an open pit proven+probable reserve of 157.7 million tonnes grading 0.058% Mo using a 0.040% Mo cut-off grade.
This news release was reviewed by Dr. Robert Pinsent, Ph.D., P.Geo., a qualified person recognized under National Instrument 43-101.
On Behalf of Management
ADANAC MOLYBDENUM CORPORATION
Michael MacLeod,
President & Chief Executive Officer
