Adex Provides Development Strategy Update for Its Mount Pleasant Mine Property
September 16 2010 - 9:30AM
Marketwired
Adex Mining Inc. ("Adex" or the "Company") (TSX VENTURE: ADE) is
pleased to provide the following update on its development strategy
related to its wholly-owned Mount Pleasant Mine Property ("Mount
Pleasant" or the "Property"), located in south-western New
Brunswick, Canada. The Property includes two potentially economic
mineral deposits, the tin-indium-zinc North Zone and the
tungsten-molybdenum Fire Tower Zone.
As announced on August 23, 2010, Adex has signed a Subscription
Agreement (the "Agreement") with Great Harvest Canadian Investment
Company Limited ("Great Harvest") pursuant to which Great Harvest
has agreed to provide the funding for a definitive feasibility
study ("DFS") with respect to the North Zone and provide or arrange
for funding which will permit the commencement of commercial mining
operations at Mount Pleasant. The transactions provided for in the
Agreement are subject to the approval of the shareholders of Adex,
which will be sought at a special meeting of shareholders called
for October 14, 2010. The management and board of directors of Adex
fully support the Agreement and the transactions contemplated
thereby, as they will allow for the commercial development of Mount
Pleasant and are anticipated to bring synergies to enhance
shareholder value.
The association of Adex and Great Harvest has several positive
implications in addition to providing project financing. Firstly,
Great Harvest represents a well financed resource development group
based in Hong Kong with experience with operations in foreign
jurisdictions. Additionally Great Harvest can assist in accessing
technologies for the enhanced recovery of metals, especially tin
and tungsten. Great Harvest has a metals and concentrate trading
division which could assist with the sale of the metal products
from Mount Pleasant.
Adex and Great Harvest believe that Mount Pleasant represents a
unique mineral inventory with two distinct deposits (the North Zone
and the Fire Tower Zone) in a secure jurisdiction with access to
existing infrastructure. The metals proposed for commercial
extraction represent key products associated with the information
technology industry (tin and indium) and the high tech metals
industry (tungsten and molybdenum).
The development strategy for Adex, which is supported by Great
Harvest, is the production of metal products as opposed to metal
concentrates. Technical work has now been completed which indicates
that indium and zinc could be finished to final 'marketable' metal
products on site. In addition, proposed test work could demonstrate
the viability of producing tin metal. This would both greatly
assist in the conclusion of off-take agreements and improve
commercial returns for shareholders.
The second step of Adex's development strategy anticipates that
once the North Zone is in commercial production, the Company would
utilize its cash flows, production experience and enhanced balance
sheet to bring the Fire Tower Zone into commercial production. The
production of final 'marketable' metal products is also possible
from the Fire Tower Zone, with the production of APT (ammonia
para-tungstate) and molybdenum dioxide or molybdic oxide
proposed.
Adex plans to commence a DFS on the North Zone before the end of
2010. Included with the financial and technical studies is ongoing
metallurgical test work and definition drilling (to upgrade the
classification of the resources) which are anticipated to improve
project returns. The DFS is expected to be completed in the first
half of 2011. Once a production decision has been made, Great
Harvest will assist Adex in identifying mining and mill equipment
as well as construction materials which could offer significant
reductions to capital costs.
Adex management is confident in the soundness of its development
plans and looks forward to ultimately bringing a mine into
production.
ABOUT ADEX
Adex Mining Inc. is a Canadian junior mining company with an
experienced management team. The Company is focused on developing
its flagship Mount Pleasant Mine Property, a multi-metal project
that is host to promising tungsten-molybdenum and tin-indium-zinc
mineralization. Located in Charlotte County, New Brunswick, the
Mount Pleasant Mine Property is 80 kilometres south of Fredericton,
the provincial capital, and 65 kilometres from the United States
border. The common shares of Adex trade on the TSX Venture Exchange
under the stock symbol "ADE".
No securities commission or regulatory authority has approved or
disapproved the contents of this press release.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute
"forward-looking" statements which involve known and unknown risks,
uncertainties and other factors which may cause actual results,
performance or achievements of Adex, its subsidiary or the industry
in which they operate to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. When used in this press release, the
words "estimate", "believe", "anticipate", "intend", "expect",
"plan", "may", "should", "will", the negative thereof or other
variations thereon or comparable terminology are intended to
identify forward-looking statements. Such statements reflect the
current expectations of the management of Adex with respect to
future events based on currently available information and are
subject to risks and uncertainties that could cause actual results,
performance or achievements to differ materially from those
expressed or implied by those forward-looking statements. These
risks and uncertainties are detailed from time to time, including,
without limitation, under the heading "Risk Factors", in reports
filed by Adex with the Alberta, British Columbia and Ontario
Securities Commissions which are available at www.sedar.com and to
which readers of this press release are referred for additional
information concerning Adex, its prospects and the risks and
uncertainties relating to Adex and its prospects. New risk factors
may arise from time to time and it is not possible for management
to predict all of those risk factors or the extent to which any
factor or combination of factors may cause actual results,
performance and achievements of Adex to be materially different
from those contained in forward-looking statements. Although the
forward-looking statements contained in this press release are
based upon what management believes to be reasonable assumptions,
Adex cannot assure investors that actual results will be consistent
with these forward-looking statements. Given these risks and
uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual results.
The forward-looking information contained in this press release
is current only as of the date of the press release. Adex does not
undertake or assume any obligation to release publicly any
revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Adex Mining Inc. J. Errol Farr, CMA President, Chief
Executive Officer and Director 1-866-508-2339 (ADEX)
investorrelations@adexmining.com www.adexmining.com
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