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Adanac receives design plans for Ruby Creek project

2006-02-10 09:43 ET - News Release

Mr. Larry Reaugh reports

MINNOVEX COMPLETES PROCESS DESIGN FOR RUBY CREEK (MOLY @$25.75 US/LB)

The management of Adanac Moly Corp. has confirmed that SGS-MinnovEX (formerly MinnovEX Technologies Inc.) has completed the design for the mill process at Adanac's Ruby Creek molybdenum project near Atlin, B.C.

The process, for Adanac's proposed 20,000-tonne-per-day milling and flotation of this low-grade molybdenite resource, will be a conventional crushing system followed by SAG and ball milling which includes two-stage classification and flash flotation ahead of rougher flotation. In this way overgrinding is minimized and molybdenite recovery is increased. Flotation will be conventional and will include two stages of regrinding within five cleaning stages. On-line analyses and particle size measurements have been designed to effect careful control of the flotation process in combination with continuous visual monitoring/recording by the use of cameras linked to computer control.

The concentration ratio is more than 1,000:1. Minor amounts of liberated copper, lead and zinc minerals are eliminated through the use of a depressant and precise control of flotation variables. A high-quality molybdenite product at grades 90 to 94 per cent MoS2 and overall recovery of 90 to 92 per cent is expected.

For this work, which has been completed within a nine-month period (May, 2005, to February, 2006), 100 samples from drill cores obtained in 2004 and 2005, carefully selected to be representative of the five lithologies occurring within the proposed open pit area of the resource, were tested to establish hardness and grindability factors for SAG and ball mill design. The range of variability has been worked into a geostatistical distribution of hardness data across the mine block plan to provide a final design. It takes into account the location of sample points and a geological plan of the resource together with a mine plan of the blocks to be mined during the proposed life of the project. The design allows for an average 906 tonnes per hour at a P80 of 210 microns and includes allowance for inefficiencies in motors and drivetrain.

Flotation tests were run on 40 of the 100 samples. The initial tests were done to quantify the rougher feed pulp kinetic characteristics per drill core sample under specified regent conditions. Later, rougher-cleaner tests and a locked cycle test on composite samples quantified the change in kinetics which occurred after regrinding of the rougher concentrate. These data have been used to develop MinnovEX's proprietary Fleet system, which is calibrated and then used to evaluate scale-up of flotation performance of the Ruby Creek resource in a full-scale plant process comprising rougher and cleaner (with regrinds) circuit configurations. Testing showed variability to be minimal: the key is the precise control of range of particle size in flotation and through regrinding in the cleaning stages. MinnovEX's Fleet simulations confirmed pilot plant results/expectations from the work done in 1969 to 1970 and variability to be expected when this resource is mined and processed according to current plans.

Management is confident that this method for process design is the most cost effective and reliable basis for development of its Ruby Creek molybdenum resource.

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 socio-economic benefits to the local community, Taku River Tlingit First Nation and British Columbia.

This press release was prepared by John W. Fisher, CEng, PEng, a qualified person under policy NI 43-101.

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