Wednesday, December 9, 2009

Adex Mining Inc Reports a Positive Assessment on the North Zone - IRR - 28.87


Adex Mining Inc. has released the results of a new preliminary assessment (PA) on its wholly owned Mount Pleasant mine property, located in southwestern New Brunswick, Canada. Mount Pleasant is the site of a past-producing tungsten-molybdenum underground mining operation, which operated during the 1980s. This PA is a preliminary technical and economic assessment of the production of tin, indium and zinc products from the North zone (NZ) of the property.

The results of the PA indicate that there are two viable production options for the NZ, including the production of tin concentrate, indium sponge and zinc metal, and the production of tin concentrate and zinc-indium concentrate. Based on a 10-year project life and production rate of 850 tonnes per day, the PA shows pretax internal rates of return (IRR) for the tin concentrate, indium sponge and zinc metal production option, and the tin concentrate and zinc-indium concentrate production option of 28.87 per cent and 23.49 per cent, respectively, as shown in the table entitled, "Internal rates of return."

                         INTERNAL RATES OF RETURN                       

Option 1 -- Option 2 --
production of production of
tin concentrate, tin concentrate
indium sponge and zinc-indium
and zinc metal concentrate

Pretax IRR 28.87% 23.49%
After-tax IRR 23.94% 19.30%
After-tax net present value
(NPV) (discounted at 8 per cent) $54.2-million $21.5-million
Preproduction capital $71.1-million $41.2-million
Production rate (tonnes per day) 850 850

"These are exciting times for Adex," said Errol Farr, president and chief executive officer of Adex. "The PA results reinforce Adex's plans for piloting the concentrate and metals flowsheets as a next phase leading to definitive feasibility and production. The NZ development is an integral part of Adex's overall strategy for producing tin, indium, zinc, tungsten and molybdenum from the resources at the property."

For the full release click here 

Investor Relations Contact
Toll free: (866) 508-ADEX (508-2339)

No comments: