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NI 43-101 Independent Technical Report Mount ... - Adex Mining Inc.

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<strong>NI</strong> <strong>43</strong>-<strong>101</strong> <strong>Independent</strong> <strong>Technical</strong> <strong>Report</strong> Rev 02 January 22 nd , 2010<br />

<strong>Mount</strong> Pleasant North Zone Preliminary Assessment (Project 6526-03) 1-1<br />

SECTION 1.0 SUMMARY<br />

1.1 Background<br />

<strong>Adex</strong> <strong>Mining</strong> <strong>Inc</strong>. ("<strong>Adex</strong>") is a Canadian junior mining company with a 100% interest in the <strong>Mount</strong><br />

Pleasant Mine Property ("<strong>Mount</strong> Pleasant" or the "Property"), which it acquired in 1995. The<br />

Property is located in Charlotte County in southwestern New Brunswick, Canada and is the site of<br />

a past-producing tungsten mine with existing surface infrastructure including several buildings<br />

and a tailings impoundment area.<br />

The property hosts two distinct mineralized zones, the Fire Tower Zone and the North Zone. The<br />

Fire Tower Zone is dominated by tungsten-molybdenum mineralization while the North Zone<br />

mineralization of interest includes tin, zinc and indium. The preliminary assessment as defined<br />

herein is based solely on the development of the North Zone.<br />

The entire land package consists of 102 contiguous mining claims covering approximately 1600<br />

hectares held under prospecting license 1<strong>43</strong>38. <strong>Adex</strong> holds surface rights covering approximately<br />

405 hectares within the mining claims that includes the area of the mine site, mill site and tailings<br />

pond, as well as northern sections of the Fire Tower Zone and North Zone. Third parties including<br />

the province of New Brunswick and private individuals own the remaining surface rights in the<br />

claim area.<br />

The <strong>Mount</strong> Pleasant Tungsten Mine was developed in the Fire Tower Zone and a concentrator<br />

and life of mine tailings impoundment area were constructed in a 50/50 joint venture between<br />

Billiton Exploration Canada Limited and Brunswick Tin Mines. Processing commenced in 1983<br />

and ceased in 1985 due to cost overruns, metallurgical difficulties and falling tungsten prices.<br />

During the production period, the mine produced 990,200 tonnes of tungsten ore from the Fire<br />

Tower Zone. The Property was subsequently placed on care and maintenance and the mine<br />

workings allowed to flood in 1988.<br />

Buildings on the site previously used for mineral processing, administration and warehousing are<br />

in excellent condition and have been well maintained since production ceased in 1985. Major<br />

processing, mining and mobile equipment has been sold and removed from the site. The tailings<br />

impoundment area is a major infrastructure asset of the Property. Electrical power from the NB<br />

Power grid is supplied via a 138 kV transmission line to the mine site substation with existing<br />

transformers. The substation is regularly maintained by contract electrical personnel. <strong>Adex</strong> has<br />

retained 100% ownership of the buildings and equipment remaining on the Property. The<br />

Property is currently being operated under care and maintenance.<br />

A National Instrument <strong>43</strong>-<strong>101</strong> (<strong>NI</strong> <strong>43</strong>-<strong>101</strong>) compliant technical report was prepared by Watts,<br />

Griffis and McOuat (WGM) Limited and SGS Geostat in May, 2009 containing a resource<br />

estimate for the North Zone. Since the filing of this report, <strong>Adex</strong> has undertaken an internal review<br />

to identify higher grade blocks within the estimate as a low-tonnage, high-grade production<br />

scenario. Based on the high grade blocks identified within the North Zone resource estimate,<br />

<strong>Adex</strong> <strong>Mining</strong> <strong>Inc</strong>. contracted Thibault & Associates <strong>Inc</strong>. (Fredericton, New Brunswick) to prepare<br />

and coordinate a preliminary assessment of production options from the Property's North Zone in<br />

compliance with <strong>NI</strong> <strong>43</strong>-<strong>101</strong> standards.<br />

Thibault & Associates <strong>Inc</strong>.<br />

Applied Process Chemical Engineering

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