Adanac Moly Corp. (AUA: TSX.V, Pink Sheets: ANCGF, Frank: A9N) is pleased to report Golder Associates Ltd. (“Golder”) have completed the Ruby Creek Mining Feasibility based on the updated resource estimates reported in the press release of February 16, 2006 and geotechnical information obtained from the 2005 field program.
Golder’s proposed design includes 5 phases. The proposed open pit design has been revised to mine Phase 1 through Phase 4, with the first phase cutoff grade increased from 0.040% Mo to 0.060% Mo to assist with increased molybdenum production in the initial years to facilitate rapid payback of capital costs. These data indicate an average mill feed grade of 0.079% Mo for the first six years of operation which translates to annual average production of 11.3 million lbs Mo (18.83 million lbs MoS2).
The final Phase 5 is marginal based on a molybdenum price of US $7/lb, but can add over 20 million lbs Mo production and extend the mine life by four years. A decision to mine this Phase would be made after year 13 and would be based on the prevailing economic conditions at the time.
The revised updated design changes both capital and operating costs estimates as shown in the Table below:
Mr. Paul Palmer P.Geo, P.Eng and Mr. Kirk Rodgers P.Eng both independent qualified persons as defined by NI-43-101 have supervised and coordinated Golder’s mining feasibility work.
The Ruby Creek Project is a proposed open pit molybdenum mine situated 24 kilometers northeast of Atlin, BC, which would operate at 20,000 tonnes per day of ore for 20 plus years and have an overall footprint of approximately 830 hectares. The Company believes that the proposed mine is a sound project that will minimize any long term environmental effects and maximize socio-economic benefits to the local community, Taku River Tlingit First Nation and British Columbia.
On Behalf of Management
ADANAC MOLYBDENUM CORPORATION
Larry W. Reaugh,
President & Chief Executive Officer
