Adex Mining tests Mount Pleasant plant for production
Ticker Symbol: C:ADE
Adex Mining Inc (C:ADE)
Shares Issued 96,526,026
Last Close 3/2/2010 $0.125
Wednesday March 03 2010 - News Release
Mr. Errol Farr reports
ADEX ANNOUNCES PILOT PLANT TESTING OF PROCESSING OPTIONS FOR ITS MOUNT PLEASANT PROPERTY
Adex Mining Inc. continues with the the process development options outlined in its recently filed National Instrument 43-101-compliant preliminary assessment report on the North zone of its wholly owned Mount Pleasant mine property, located in southwestern New Brunswick, Canada.
Two potential North zone production options resulted from the PA -- the production of tin concentrate, indium sponge and zinc metal, and the production of tin concentrate and zinc-indium concentrate.
Adex has engaged SGS Lakefield to perform bench scale performance and locked cycle testing for its tin concentrate and zinc-indium concentrate production option and has secured a spot with SGS for commencement in April of pilot plant operations.
As well, Adex has engaged Thibault & Associates Inc. of New Brunswick for pilot testing and continuing development of a comprehensive flowsheet of its hydrometallurgical process for the production of zinc metal and indium sponge metal.
Results from pilot plant test work, expected by mid-summer 2010, will, if positive, lead directly to a definitive feasibility study ("DFS"), which will initially run concurrently with the final stages of the pilot plant programs. Positive results from the DFS as well as government regulatory approvals and project financing are expected to lead to a production decision before the end of 2010.
Pending the developments referred to above, Adex expects to be positioned to construct an access decline and begin engineering and procurement of processing equipment by early 2011. Concentrator production is targeted for late 2011.
The PA, which is available at SEDAR, indicated pre-tax 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% and 23.49%, respectively. The PA also indicated an after-tax IRR of 22.55% for the tin concentrate, indium sponge and zinc metal production option, and an after-tax IRR of 18% for the tin concentrate and zinc-indium concentrate production option.
The PA and the economic analyses contained therein are preliminary in nature and contain "Inferred" mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PA will be realized with more detailed work. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The Property hosts the tungsten-molybdenum bearing Fire Tower Zone ("FTZ") and the tin-indium-zinc bearing North zone. The FTZ is the site of a past-producing tungsten-molybdenum underground mining operation that produced and sold tungsten concentrate between 1983 and 1985.
FOR FURTHER INFORMATION PLEASE CONTACT:
J. Errol Farr, CMA
President, Chief Executive Officer and Director
Adex Mining Inc.
1-866-508-2339 (ADEX)
Email: investorrelations@adexmining.com
Website: www.adexmining.com
