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

NI 43-101 Independent Technical Report Rev 02 January 22 nd , 2010
Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 1-1
SECTION 1.0 SUMMARY
1.1 Background
Adex Mining Inc. ("Adex") is a Canadian junior mining company with a 100% interest in the Mount
Pleasant Mine Property ("Mount Pleasant" or the "Property"), which it acquired in 1995. The
Property is located in Charlotte County in southwestern New Brunswick, Canada and is the site of
a past-producing tungsten mine with existing surface infrastructure including several buildings
and a tailings impoundment area.
The property hosts two distinct mineralized zones, the Fire Tower Zone and the North Zone. The
Fire Tower Zone is dominated by tungsten-molybdenum mineralization while the North Zone
mineralization of interest includes tin, zinc and indium. The preliminary assessment as defined
herein is based solely on the development of the North Zone.
The entire land package consists of 102 contiguous mining claims covering approximately 1600
hectares held under prospecting license 14338. Adex holds surface rights covering approximately
405 hectares within the mining claims that includes the area of the mine site, mill site and tailings
pond, as well as northern sections of the Fire Tower Zone and North Zone. Third parties including
the province of New Brunswick and private individuals own the remaining surface rights in the
claim area.
The Mount Pleasant Tungsten Mine was developed in the Fire Tower Zone and a concentrator
and life of mine tailings impoundment area were constructed in a 50/50 joint venture between
Billiton Exploration Canada Limited and Brunswick Tin Mines. Processing commenced in 1983
and ceased in 1985 due to cost overruns, metallurgical difficulties and falling tungsten prices.
During the production period, the mine produced 990,200 tonnes of tungsten ore from the Fire
Tower Zone. The Property was subsequently placed on care and maintenance and the mine
workings allowed to flood in 1988.
Buildings on the site previously used for mineral processing, administration and warehousing are
in excellent condition and have been well maintained since production ceased in 1985. Major
processing, mining and mobile equipment has been sold and removed from the site. The tailings
impoundment area is a major infrastructure asset of the Property. Electrical power from the NB
Power grid is supplied via a 138 kV transmission line to the mine site substation with existing
transformers. The substation is regularly maintained by contract electrical personnel. Adex has
retained 100% ownership of the buildings and equipment remaining on the Property. The
Property is currently being operated under care and maintenance.
A National Instrument 43-101 (NI 43-101) compliant technical report was prepared by Watts,
Griffis and McOuat (WGM) Limited and SGS Geostat in May, 2009 containing a resource
estimate for the North Zone. Since the filing of this report, Adex has undertaken an internal review
to identify higher grade blocks within the estimate as a low-tonnage, high-grade production
scenario. Based on the high grade blocks identified within the North Zone resource estimate,
Adex Mining Inc. contracted Thibault & Associates Inc. (Fredericton, New Brunswick) to prepare
and coordinate a preliminary assessment of production options from the Property's North Zone in
compliance with NI 43-101 standards.
Thibault & Associates Inc.
Applied Process Chemical Engineering