Adanac gets Ruby Creek moly resource estimate

Vancouver – A resource estimate completed on Adanac Moly’s (AUA-V) Ruby Creek molybdenum project, located 22 km northeast of Atlin, British Columbia, shows a significant tonnage increase over historic studies.

The report, completed by engineering firm AMEC, reviews a measured and indicated resource of 199-million tonnes grading 0.062% molybdenum plus additional inferred resources of 21-million tonnes at 0.057% molybdenum. A cut-off grade of 0.04% molybdenum was utilized and is believed to be comparable to parameters used in North American porphyry operations.

The National Instrument 43-101 compliant estimate shows a 31% boost in tonnage over the historic figure calculated by Placer Development, a predecessor company to Placer Dome (PDG-T). The study is based on data from almost 32,000 metres of historic core drilling, in 212 holes, plus Adanac’s recent 9,000 metres (36 holes) of additional drilling. Previous work also included over 1,100 metres of underground development to extract about 10,000 tonnes of mineralized material for metallurgical testing.

With molybdenum prices touching US$32 per pound, the company is proceeding to feasibility stage anticipated for completion by the end of 2005. Continued molybdenum price strength is attributed to ongoing supply shortages coupled with soaring Asian demand. Chinese output is now largely consumed domestically with the metal primarily used in the steel industry as a hardening alloy.

Adanac, with 30.7-million shares outstanding, posts a market capitalization of $23 million. The company recently trades at the 75 per share level, slightly above the midpoint of its 52-week range of $0.30-1.05.