Adanac Moly Corp. WKN A0D N0U CA0065031068 AUA

Ein weiteres Moly-Unternehmen !

Adanac Moly Corp: the first moly dedicated junior
The earliest bird among the exploration juniors is Adanac Moly Corp (AUA-V: $0.82), which staked the 4,325 hectare Adanac molybdenum deposit in July 2001 while the company was still called Stirrup Creek Gold Ltd and struggling to reactivate itself. Stirrup consolidated its stock 5:1 on October 31, 2003 and renamed itself Adanac Gold Corp even though the TSXV had classified it as a "copper-molybdenum" company. Larry Reaugh's caution was likely linked to his earlier foray into molybdenum exploration. During the mid nineties he had pushed two other companies, Molycor Gold Corp (MOR-V) and Verdstone Gold Corp, into molybdenum exploration with several prospects in southern British Columbia. In March 1997 both companies secured an option on the Yorke-Hardy deposit near Smithers and investigated putting its high grade core into production at 3,000 tpd. They abandoned the option several years later and gave up their molybdenum focus. By November 2004, however, molybdenum's rocketing price had turned Larry Reaugh into a believer once again and he changed Adanac's name to Adanac Moly Corp.

The Adanac deposit, now renamed Ruby Creek, was discovered in 1898 but did not undergo serious exploration until the 1967 when a junior called Adanac Mining and Exploration staked the property. Kerr Addison optioned the property and completed a feasibility study in 1971 but declined to proceed. Placer optioned the project in 1978 and initiated permitting for a 14,000 tpd mine on the basis of a resource calculation of 151,971,000 tonnes of 0.063% Mo but lost interest in 1982 and dropped its option. John Lamacraft's Adanac merged with John Weatherall's Bell Molybdenum Mines in 1995, which in 1997 acquired an airborne geophysical survey company called Aerodat and renamed itself Bell Earth Services. The Adanac (Ruby Creek) claims lapsed after Aerodat went bankrupt in 1998 and Bell Earth delisted from the VSE in 1999, enabling Larry Reaugh's unrelated Adanac to stake the deposit in 2001. In late 2003 the new Adanac initiated a scoping study on the Ruby Creek deposit which concluded that at $6/lb molybdenum a 14,000 tpd milling operation with a 17 year mine would have a 16% internal rate of return and a rather abysmal net present value of Cdn $3.5 million. The scoping study envisioned construction of a nearby 10,000 kilowatt hydroelectric facility to provide power. The Ruby Creek deposit is located in the northwestern corner of British Columbia 25 km northeast of the small town of Atlin, a location which would qualify as remote and lacking in infrastructure. During 2004 Adanac completed a 36 hole 9,000 metre drill program that consisted mainly of infill drilling but also included some stepout holes. Although historical resource calculations were made by major mining companies, they are not in compliance with 43-101 requirements and some of the data needed to make the resource 43-101 compliant is no longer available. The purpose of the 2004 drilling was to allow a reserve study which will yield a 43-101 compliant resource. Adanac's goal in 2005 is to complete a prefeasibility study which justifies putting the Ruby Creek deposit into production as a pure molybdenum mine.

Adanac completed a flurry of financings during December 2004 that raised several million dollars. On December 21 Adanac received approval for a short offering financing of 2.4 million units at $0.50 by Canaccord. Once this financing is done Adanac will have about 50.1 million shares fully diluted. The company has 5.8 million private placement warrants outstanding that escalate from $0.40 to $0.50 on July 7, 2005. During August 2004 Adanac acquired the Nevada BC project in Nevada on reasonable terms. The Nevada BC property covers part of a tabular molybdenite bearing body controlled by US Smelting and Refining. Should Adanac secure a reasonable option on the USS claims the Nevada BC project could also become a significant moly play. This project in Nevada somewhat offsets the risk associated with the upcoming May 2005 provincial government elections in British Columbia. If the anti-development New Democrat Party comes back into power exploration and mine development in British Columbia will likely once again hit a wall of resistance that would kill the market's appetite for plays such as Ruby Creek. At the moment it does not look like the NDP will replace the incumbent Liberals (not the same as US Democrats), but BC politics is such that nothing can be taken for granted. Adanac has an advantage over other moly juniors in that the company has established a high profile as a molybdenum exploration junior. The company's web site, http://www.adanacmoly.com, provides links to current molybdenum prices and charts.

The Ruby Creek Molybdenum (RCM) Porphyry deposit, located 24 km NE of Atlin, BC, was first drilled in 1969 and has since had approximately 31,959 metres (104,826 ft) of diamond drilling carried out by the original Adanac Mining and Exploration Ltd., Kerr Addison Mines Limited (“Kerr Addison”), Climax Molybdenum Corporation and Placer Development Limited (“Placer”) up to 1981.

In addition Kerr Addison completed a program of underground development of 1,116 metres (3,660 ft) entailing adit access, cross-cutting and raising six holes to produce 9,545 tonnes of ore for on-site processing on a 100 tonnes/day pilot mill. Test work in 1970 was to determine mill head recoveries which averaged 91% and were used in subsequent feasibility studies (three) carried out by Kerr Addison in 1970, Placer in 1978 and 1979. Bulk sampling & milling by Kerr Addison reported recoveries 17% to 26% higher than diamond drill hole results, reserve figures are based on diamond drill values. The 1979 study was a stage II feasibility which was put on hold pending an investigation of the uranium content within the deposit. Content of uranium was found to be less than 20% of allowable thresholds with no more impact on the environment than the surrounding plutonic rock. At the end of the study the molybdenum price had dropped considerably to the $2.00–$3.00(US) range where it remained with the exception of two or three short lived spikes until the summer of 2003. Molybdenum prices have increased from $6.00(US) to the current price of $28.75(US) over the past 12 months.

Adanac has recently completed 9,022 metres (29,592 ft) in 36 holes for a total (including drilling by predecessors) of 40,981 metres (134,418 ft) in 248 holes.

Adanac has the following advantages over the predecessor companies:

Adanac has a 100% interest in the property, whereas the original property was burdened by a 3.5% NSR to Johns Manville. Kerr Addison could only earn a 60% interest and Placer a 70% interest.

The price of molybdenum is fifteen times the price at which Kerr Addison undertook feasibility work in 1970 and 4.8 times the price when Placer undertook its feasibility studies.

Multi-billion dollar long term contracts are being entered into by Chinese corporations for the supply of iron ore which bodes well for molybdenum due to its extensive use in stainless steel and other steel products. Indications are for a long sustained demand for molybdenum ore.

Currently surplus power is available from the Yukon Grid which would require the company to install only 100 kilometres of transmission line. Yukon power was not available in the 1970's and 1980's.

Road access to Skagway, Alaska's deep water port is now available.
To date 16 of 36 holes drilled have been assayed and released. We are pleased with the results of the reported holes, as continuity and grade within the historic pit study, are comparable to past results. The historic pit study carried out by Placer resulted in an historic estimate of 151,971,000 tonnes grading .063% Mo (.105% MoS2), however, the company has not been able to obtain enough of the original data and has not done the work necessary to verify the classification of the resource or reserve, we are not treating them as a NI 43-101 defined resource or reserve verified by a QP, and the historical estimate should not be relied upon. The Company's 36 hole program was designed by AMEC PLC to enable the Company to complete a new NI43-101 resource calculation by a qualified person which the Company would be able to use in carrying out a feasibility study.

In addition, 8 drill holes of the 36 hole program were drilled outside of the pit limit and pending assay results along with three holes reported extend existing mineralization by 270 metres.

Ten months ago we initiated an in-house economic evaluation by D.W. Philip Mining Services, to consider advancing the project through feasibility. D.W. Philip's report recommended the company should advance the project at current prices of $6.00/lb for molybdenum and to date the following steps have been taken:

Adanac in late January 2004 increased its property holdings to 4,325 hectares which now cover the proposed waste dumps, tailings pond, concentrator and construction camp as proposed in the Stage II feasibility by Placer Development Limited in 1979.

Adanac appointed David Philip P, Eng. as Project Manager.

AMEC PLC was engaged for the NI 43-101 reserve report.

AMEC PLC recommended a 9,000-10,000 metre drill program of in-fill, twin holes and exploration targets.

Klohn Crippen Consultants was retained to initiate environmental and socio-economic studies for the Ruby Creek Molybdenum Project. Field work is now completed and a draft for submission to the BC Government is under review.

We completed a soils and a geochem survey resulting in a wide area of mineralization averaging 235 ppm Mo, located 1.5 kilometers east-northeast of the current Ruby Creek Molybdenum occurrence.

Aurora Geosciences Ltd. completed an Induced Polarization Survey to assist in drilling in the Adera Fault area.

Adanac appointed Robert Pinsent PhD., P. Geo, Exploration Manager. Dr. Pinsent was the manager of the exploration drill program for Placer in 1980.

Falcon Drilling Ltd. completed 36 hole drill program, 9,022 meters (29,592 ft), with 20 drill holes awaiting assay.

Underhill Geomatics Ltd. was retained for surveying previous and present drill holes to locate co-ordinates and elevations for AMEC PLC to begin its NI 43-101 reserve study.
The company's goal is to fast track a feasibility study of the RCM project in order to (if a positive feasibility study is achieved) obtain an estimated production of 10,000,000 lbs of molybdenum a year and capitalize on the strong price and demand for molybdenum in order to achieve a fast payback of investment.

The company is currently contacting interested organizations in North America and China to initiate preliminary discussions for marketing its product as well as financing on the successful completion of its NI 43-101 reserve study and feasibility work. When AMEC PLC completes the NI 43-101 reserve report, Adanac will immediately proceed with the feasibility study.

In addition, in a move designed to augment our position as a developer of molybdenum properties, we have acquired a 100% interest in a Nevada molybdenum property, known as the Nevada BC Property, located in Nye County, 12 miles southeast of Gabbs, Nevada.

The Nevada BC Property consists of 46 unpatented lode mining claims and cover a significant part of a large flat tabular molybdenum occurrence measuring approximately 1,195 meters (3,920 feet) long X 465 meters (1,525 feet) wide X 51 meters (167 feet) thick. Prior drilling (66 diamond and RC holes) by US Smelting Refining and Mining (USS RAM) encountered molybdenum, copper and silver values over the area encompassing the tabular structures. The discovery hole located in proximity to our claims averaged .30% Mo (.50% MoS2) over 24.4 meters (80 feet). Part of the tabular structure containing the discovery hole is located on the claim which is retained by a subsidiary of USS RAM. WE have initiated discussions with the owners of the one claim in order to advance the project reported to contain 131 million tons grading .12% Mo (.20% MoS2) on page 58 and 74 of the 1985 US Bureau of Mines circular 903-5, and titled Principal Deposits of Strategic and Critical Minerals of Nevada, however , we have not been able to obtain enough of the original data and have not done the work necessary to verify the classification of the resource or reserve, we are not treating them as a NI 43-101 defined resource or reserve verified by a QP, and the historical estimate should not be relied upon.

The 100% interest is subject to a 1.25% NSR – 1% (4/5 of which of which may be purchased for $2,000,000

Powerpoint Präsentation :

http://www.adanacmoly.com/Elst…004,12,11_files/frame.htm