Adanac awaits bankable feasibility study at Ruby Creek

2006-01-11 12:59 ET - News Release

Mr. Larry Reaugh reports

ONGOING BANKABLE FEASIBILITY UPDATE (MOLY @$23.50 US/LB)

There is satisfactory continuing progress being made with the development of the bankable feasibility for the Adanac Moly Corp.'s Ruby Creek molybdenum project, near Atlin, B.C.

The immediate priority is the completion and submission of the environmental impact assessment report to the regulatory authorities. This will be done before the end of the month. Submission of this document initiates the permitting process.

After completion of the preliminary feasibility (see news in Stockwatch dated Sept. 1, 2005), the company announced (in Stockwatch Sept. 21, 2005), the start of the final bankable feasibility: contractors Golder Associates Ltd.,Wardrop Engineering, MinnovEX Technologies and Klohn Crippen Consultants Ltd. have continued to develop their earlier work to the more precise standards required for this stage. Their reports are expected to be available within four to five weeks.

The emphasis continues to be to develop maximum efficiency through use of best available technologies consistent with optimum economics and high environmental/safety, achieve lower capital and operating costs, than those reported in the preliminary feasibility (Sept. 1, 2005, news in Stockwatch), will have been realized when the full bankable feasibility is issued.

The technical reports will contain an updated National Instrument 43-101-compliant resource estimate which includes the results of the 2005 exploration work and a revised mining plan; details of innovative milling technology enabling improved efficiencies in the use of power and the overall recovery of molybdenum as well as an assurance that this resource will yield a premium product at high rates of recovery. Environmental consequences are reliably estimated to be minimal and benign. Collaboration between Golder and MinnovEX has produced a geostatistical analysis and estimation of grindability data for almost 11,000 discrete blocks (20 metres by 20 metres by 12 metres) of the Ruby Creek resource within the limits of the proposed final pit.

The company is confident these data will form the basis for development of a successful production operation at Ruby Creek.

This general overview of the almost complete current full feasibility work has been prepared by John W. Fisher, CEng, PEng (chemical/metallurgic engineer -- an independent qualified person as defined by National Instrument 43-101.

The Ruby Creek project is a proposed open-pit molybdenum mine situated 24 kilometres northeast of Atlin, B.C., 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 socioeconomic benefits to the local community, Taku River Tlingit First Nation and British Columbia.

We seek Safe Harbor.

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