Adex Mining Inc.
TSX VENTURE : ADE

Adex Mining Inc.

April 06, 2009 08:40 ET

Adex Announces NI 43-101 Compliant "Indicated" Mineral Resource Estimate of 10.88 Million Tonnes for the North Zone's Tin-Indium-Zinc Deposit at Mount Pleasant

TORONTO, ONTARIO--(Marketwire - April 6, 2009) - Adex Mining Inc. ("Adex" or the "Company") (TSX VENTURE:ADE) is pleased to announce that it has completed a National Instrument 43-101 (“NI 43-101”) compliant Mineral Resource estimate for seven tin-indium-zinc (Sn-In-Zn) sub-zones and one tungsten-molybdenum-bismuth (WO3-MoS2-Bi) sub-zone which make up the North Zone (“NZ”) at its wholly-owned Mount Pleasant Mine Property in southwestern New Brunswick, Canada (“Mount Pleasant” or the “Property”). The total Sn-In-Zn resource estimate includes an Indicated Mineral Resource of 10,882,000 tonnes, plus an Inferred Mineral Resource of 7,603,000tonnes.

The NI 43-101 compliant Mineral Resource estimate for the NZ indicates the opportunity for both near surface and at depth mineralization. This will have implications for further studies when assessing the economic potential of developing a near surface, open pit and/or underground mining operation at the NZ.

The NI 43-101 compliant Mineral Resource estimate, completed by Watts, Griffis and McOuat Limited(“WGM”) using an updated GEMCOM model, was completed in conjunction with the preparation by WGM of an independent NI 43-101 Technical Report under the supervision of Trevor Boyd, P.Geo., the Company's Geological Consultant.

Details of the NI 43-101 compliant mineral resource estimate are as follows.

NORTH ZONE - MINERAL RESOURCE ESTIMATE,
MOUNT PLEASANT MINE PROPERTY

Sub-Zones Tonnes % Sn g/t In g/t In (Capped) % Zn % As %WO 3 %MoS 2 % Cu % Bi
Indicated                    
Deep Tin  5,006,000  0.39 101.0 95.2 0.86 1.25 0.08 0.06 0.14 0.08
Endogranitic  4,336,000  0.55  21.8 20.3 0.28 0.85 0.12 0.06 0.10 0.09
Upper Deep Tin   838,000  0.22 102.8 94.9 1.36 0.76 0.08 0.06 0.07 0.05
#4 Tin Lode   702,000  0.25  74.1 74.1 1.00 0.19 0.01 0.01 0.09 0.00

Total Indicated
10,882,000

0.43


 67.8


64.0


0.67


0.98
0.09 0.06 0.11 0.08
                     
Inferred                    
#1-3 Tin Lode  2,345,000  0.18  76.8  73.5 1.08 0.28 0.02 0.03 0.09 0.01
#5 Tin Lode  1,267,000  0.15 115.4 111.3 1.50 0.70 0.07 0.04 0.08 0.03
North Adit  3,076,000  0.27  62.1  62.1 0.83 1.16 0.09 0.06 0.09 0.07
North W-Mo   915,000  0.26  54.3  49.8 0.58 1.14 0.25 0.12 0.12 0.10

Total
Inferred


7,603,000


0.22


74.6


72.3


0.99


0.80


0.08


0.05


0.09


0.05

The resource estimate for the Sn-In-Zn sub-zones was based on a cut-off grade of 0.25% Sn equivalent (Sn eqv.), equal to % Sn + 41.67 x % In. The 0.25% Sn equivalent cut-off grade was provided by Adex based on a value of the mineralized material of US$30/tonne derived from the previous six-year price trend and price relationship between tin and indium using an estimated tin price of US$12.0/kg and indium price of $500/kg. Zinc was not incorporated into the estimation of the cut-off grade. In consultation with WGM and based upon these metal prices, Adex has determined that 0.25% Sn equivalent is an acceptable cut-off grade to report the resources.

Until an economic evaluation is completed, the economic cut-off for this deposit is unknown. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

A policy of capping of high indium grades was implemented based upon the statistical distribution of the metal within each individual sub-zone. Hence the Upper Deep Tin, Deep Tin, #5 Tin Lode, #1-3 Tin Lode, Endogranitic and North W-Mo sub-zones had capped indium grades at 965, 830, 750, 500, 200 and 200 g/t, respectively. No capping of indium was required for the North Adit or the #4 Tin lode.

If a cut-off grade of 0.30% WO3 equivalent is applied to the estimate of the North W-Mo sub-zone then the Inferred Resource is estimated to be 3,278,800 tonnes grading 0.10 % Sn, 23.5 g/t In (21.9 g/t In capped) 0.27 % Zn, 1.02 % As, 0.27 % WO3, 0.16 % MoS2, 0.05 % Cu, and 0.14 % Bi. The cut-off grade of 0.30% WO3 equivalent, equal to % WO3 + 1.5 x % MoS2, was provided by Adex. This was based on a value of the mineralized material of US$30/tonne at a tungsten price of US$100/MTU (US$10.0/kg WO3) similar to that used for the NI 43-101 resource estimation and technical report for the Fire Tower Zone (the “FTZ”) at the Property. The technical report on the FTZ (the “FTZ Technical Report”) entitled “A Technical Review of the Mount Pleasant Property, Including an updated Mineral Resource Estimate on the Fire Tower Zone, Southwestern New Brunswick for ADEX Mining Inc.” dated December 1, 2008 and completed by Paul Dunbar, M.Sc., P.Geo. Senior Associate Geologist of Watts, Griffis and McOuat Limited, Dorota A. El-Rassi, M.Sc., P.Eng., Geological Engineer of SRK Consulting and John S. Rogers, P.Eng., of Aker Metals, a division of Aker Solutions Canada Inc., is available on www.SEDAR.com.

The boundaries of the mineralized body were interpreted manually by Trevor Boyd, P.Geo., the Company's Geological Consultant. Mineralized zones were commonly cross-cutting geological units and structural boundaries. Consequently, resource boundaries were defined based solely on % Sn and % In values (or % WO3 and % MoS2 values in the case of the North W-Mo sub-zone). These were plotted on cross sections spaced 25 metres apart and mineralization boundaries were drawn halfway between drill holes. If no holes existed to limit the mineralization outlines, the boundaries were extended to a maximum of 20 metres away from the nearest hole. In general, extensions of the boundaries were made consistent with the trends defined by joining known cut-off boundaries. A minimum width of 3 metres was used for defining the zones, and a specific gravity of 2.70 was used for estimating the resources.


The eight modeled sub-zones that make up the North Zone are distributed over an area of 450 by 250 metres extending from the surface to a vertical depth of 450 metres. They are located 800 metres north of the WO3 - MoS2 FTZ for which an NI 43-101 compliant Indicated Resource of 13,489,000 tonnes, plus an Inferred Resource of 841,700 tonnes, was reported in FTZ Technical Report.

The #4 Tin Lode and #5 Tin Lode sub-zones extend from the surface to a vertical depth of 70 metres. The #1-3 Tin Lode sub-zone extends from the surface to a vertical depth of 160 metres. The Upper Deep Tin sub-zone is situated beneath the #5 Tin Lode extending from 80 to 160 metres vertical depth. The Deep Tin sub-zone reaches to within 40 metres laterally of the Upper Deep Tin Zone extending from 140 to 270 metres vertical depth. The North Adit sub-zone consists of four mineralized regions distributed from the surface to a vertical depth of 250 metres. The North W-Mo sub-zone consists of three mineralized regions extending from 80 to 350 metres vertical depth. The Endogranitic sub-zone extends from 250 to 450 metres vertical depth. An 1,100 metre decline, which was used to collect bulk samples in 1986, extends from the Fire Tower Zone underground workings to the Endogranitic sub-zone. The decline and underground workings are presently flooded. An exploration drive developed in the 1960s extends from the surface to the vicinity of the #4 Tin Lode and the #1-3 Tin Lode sub-zones. The condition of the drive is presently unknown.

The mineral resources are reported in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards, November 2004 and have been estimated in conformity with the CIM Estimation of Mineral Resource and Mineral Reserves Best Practices Guidelines, November 2003. The Company has implemented an industry standard quality control program on its drill core and assaying since the inception of its drilling program.

Paul Dunbar, M.Sc., P.Geo., Senior Associate Geologist of WGM, an independent qualified person as defined by National Instrument 43-101, carried out site visits to the Property in May and June, 2008 during which he examined the drilling program and core, and completed check sampling and assaying of core samples. Robert de l'Etoile, P.Eng., Geological Engineer and consultant to WGM, an independent qualified person as defined by National Instrument 43-101, checked assay results against the GEMCOM database. The database verification found no significant discrepancies in the geological information, which conformed to industry standards. Pulp duplicates of the drill core samples, unknown to the laboratory, were sent to a second laboratory fulfilling standard QA/QC protocols. Analytical results for some of these samples remain pending.

None of Trevor Boyd, the Company's Geological Consultant, Paul Dunbar, Robert de l'Etoile or Management of the Company is aware of any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues that may materially affect the estimate of the mineral resource.

Trevor Boyd, P.Geo., the Company's Geological Consultant, supervised the preparation of the mineral resource estimate for the North Zone and the technical information contained in this press release in compliance with NI 43-101. Paul Dunbar is preparing the NI 43-101 Technical Report on the North Zone, which Adex will file on SEDAR within 45 days of today's date.

Additional information concerning the Property is contained in the FTZ Technical Report.

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 situated approximately 80 kilometres south of Fredericton, the provincial capital, and is 65 kilometres from the United States border. The common shares of Adex trade on the TSX Venture Exchange under the stock symbol “ADE,” and the Company has 88,117,361 common shares issued and outstanding.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

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