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) 2-1
SECTION 2.0 INTRODUCTION
2.1 Background
Adex Mining Inc. ("Adex") is a Canadian junior mining company listed on the TSX Venture
exchange under the symbol "ADE". Adex owns a 100% interest in the Mount Pleasant Mine
Property ("Mount Pleasant" or the "Property"), which it acquired in 1995. The Property is located
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 mineral resources estimates section (Section 17.0) repeats, for completeness, the NI 43-101
resource estimation for the North Zone originally filed on SEDAR in May 2009. It also includes an
internal review, undertaken on the geology and mineral resources of the Mount Pleasant tinindium-zinc-copper
mineralization of the North Zone, with focus on the identification and
estimation of high-grade primary tin and indium-zinc blocks of mineralization located within the
Deep Tin ("DTZ"), Upper Deep Tin ("DTZ-UP"), North Adit ("N. Adit"), #1-3 Tin Lode, #4 Tin Lode
and #5 Tin Lode sub-zone deposits. The aforementioned lode deposits are of interest because of
their proximity to the surface (less than 80 metres depth) and to the underground workings of the
North Zone 600 Adit which was developed during the 1960s. The DTZ, DTZ-UP and N. Adit
deposits are also a focus of this review because of their relative proximity to the surface (less
than 250 metres depth) and overall higher tin and indium grades in comparison to the average
grades of the North Zone. These factors enhance the economic attractiveness of selectively
exploiting these sub-zones based upon a low-tonnage, high-grade production scenario. The
Endogranitic sub-zone, which is situated between 250 to 400 metres depth in the North Zone is
not included in this review.
The review of the high-grade blocks reported in Section 17.0 is defined within the boundaries of
the DTZ, DTZ-UP, N. Adit, #1-3 Tin Lode, #4 Tin Lode and #5 Tin Lode sub-zone deposits in the
NI 43-101 assessment. These blocks are re-delineations of resource boundaries based upon
higher cut-off grades and thus do not represent any additional newly outlined mineralized material
or an increase in the resource estimation.
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. Adex
further requested that Thibault & Associates Inc. prepare an Independent Technical Report on the
preliminary assessment compliant with NI 43-101. The objective of the preliminary assessment
was to develop conceptual processing options and compare the preliminary economic
assessment for three production options:
Case A: Production of tin concentrate and indium-bearing zinc concentrate
Case B: Production of tin concentrate, indium sponge, and zinc metal
Case C: Production of tin chloride, indium sponge, and zinc metal.
An economic model was developed and a range of run-of-mine ore processing rates in the range
of 250 to 1000 tonne/day were investigated. Based on the available resources, it was determined
that the best economy of scale was achieved for a processing rate of 850 tonne/day run-of-mine
ore and therefore the results of this preliminary assessment only include a processing rate of 850
tonne/day run-of-mine ore.
Thibault & Associates Inc.
Applied Process Chemical Engineering