ADEX MINING - 500 Beiträge pro Seite

[VeuveClicquot]

]http://www.adexmining.com/index.aspx]► [b



Da es für diesen Titel noch keinen Thread gibt,
wollte ich dies somit nachholen.

[VeuveClicquot]

[Martin12345]

Antwort auf Beitrag Nr.: 32.300.420 von VeuveClicquot am 05.11.07 22:05:35

Die Empfehlung von Maigret zieht schon mächtig an!

[VeuveClicquot]

Antwort auf Beitrag Nr.: 32.300.473 von Martin12345 am 05.11.07 22:07:56

Das liegt vielleicht auch daran, daß das Teil auf WO noch unbekannt ist.
Da haben bestimmt einige seit gestern zugeschlagen

Vielleicht meldet Maigret sich hier auch mal zu Wort.
Als ich gemerkt habe, daß nicht mal einen Thread für das womöglich gute Teil gibt, musst ich das unbedingt nachholen.

[VeuveClicquot]

...aha, die Shorthistory:

2007-10-31 85,000 -500

2007-10-15 85,500 -567,500

2007-09-30 653,000 331,000

2007-09-15 322,000 130,000

2007-08-31 192,000 7,000

2007-08-15 185,000

2007-07-31 185,000 185,000

2005-09-30 1,500 -4,710

2005-09-15 6,210 6,210

2005-08-31 -2,000

[Maigret]

Salü Ihr Beiden,

Thread gefunden.

Ich habe den Wert vor ein paar Wochen schon mal im ARU-Indium Forum zur Diskussion gestellt und wollte bei dem marktengen Teil erst mal den Jungs dort den Vorzug geben….

Seit dem in der Spitze ja schon 100% in nicht mal 4 Wochen. Wie immer nach Verdopplern in so kurzer Zeit habe ich zwischen 0,75 und 0,80 mal ein paar rausgehauen – ändert aber nix an meiner nach wie vor sehr positiven Einschätzung zu dem Wert.

Wie man hier short gehen kann ist mir ein Rätsel. Vielleicht auch ein paar dieser 10 Cent Warrant-Besitzer die damit einen Zock machen wollten ?

Noch ein paar Zahlenspielereien die ich die Tage bei Stockhouse reingestellt habe. Natürlich in diesem Stadium mit einer gewissen Vorsicht und großen Fragezeichen versehen…


The Presentation is online. Sounds good to me….
Page 24 is interesting. 650 thousand tonnes of ore per year equals $60-$100 million of metals/a.
I understood that this is only the mining of the moly/tungsten asset (?) and that the possible revenue figures are quite conservative.
In my calculations the moly/tungsten value before recovery should be somewhere about $130 million/a at current market prices and 650k/ore per year..
At revenues of approx $100 million/a, 20$ m payroll, maybe 20$ m enery/depreciation/others, 15 $m tax, the bottom line could be somewhere about $45 m/a.
How many capex and working capital will the need to start the production ? Maybe $50 millions ? Remember surface facilities, ore storage, conveyor galleries, warehousing etc. are already on the spot, so they only need fundings for maintenance/equipment and of course further exploration etc…
Let’s guess these figure is o.k. and they’ll finance the $50m at a ø SP of about $1,50.
So Adex could have something about 130 million shares after SOP.
Earnings of $45 m/a equals $0,35 per share…
With a moly/tungsten mine life of approx 20 years, further exploration potential, all this tin/indium in the ground (that could be a second little 1000 tpd mine stand alone…..) a P/E of about 10 should be fair.
So a possible price target of Adex after production would be $ 3,50.
When will Mount Pleasant be brought back into production ?? A possible schedule could be
2008 drillings, N43-101, Scoping Study
2009 Feasibility, Permits, Financing, Equipment
2010 SOP ???
I am really surprised about the progress on the site (page 20).
A possible further 400% yield in a term of approx 2,5 years sounds good to me…
The Scoping Study will give us more details of the future of these little gem. The IR guy wrote me we’ll hear something about the study in the next weeks…


Maigret

[Maigret]

Die Aktie wird derzeit ganz offensichtlich manipuliert. Wenn ein paar Shares zum Verkauf stehen krallt sich da jemand seit Tagen oft nur 1000 Stück daraus….
Kann ich mir nur so erklären dass der Käufer darauf spekuliert dass der Verkäufer die restlichen Stück dann auch ins BID schmeißt…..

[Popeye82]

Ganz übersehen den Thread.

[Martin12345]

Adex Mining Secures Approval to Operate for Mount Pleasant
Thursday November 29, 8:32 am ET

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2007) - Adex Mining Inc. ("Adex" or the "Company") (TSX VENTURE:ADE - News) is pleased to announce that the Minister of Environment for the Province of New Brunswick has rescinded the outstanding April 27, 1999 Ministerial Order (the "Ministerial Order") with respect to the Company's Mount Pleasant Mine Property (the "Property") and has issued an Approval to Operate. The nature of the now rescinded Ministerial Order is fully described in the Company's Management Information Circular dated March 22, 2007 which is available on www.sedar.com.

"The granting of the Approval to Operate by the Province of New Brunswick is an important milestone for Adex as it constitutes a significant step in advancing the development of the Mount Pleasant Mine Property", said Kabir Ahmed, President and CEO of Adex. "The Approval to Operate is a vote of confidence by the Government of New Brunswick that the Company should be permitted to proceed on its pathway to mineral production at its past-producing Mount Pleasant Mine Property. It is the first, and very necessary, regulatory step leading towards resuming mineral production."

The Approval to Operate, which is valid until September 30, 2012, permits the Company to conduct exploration and metallurgical bench scale activities on the Property; operate the mine water treatment plant; repair and upgrade the tailings dam and mine site infrastructure; and carry out any other related and approved activities on the Property.

The Approval to Operate does not permit dewatering of the mine or underground mine operations at this stage. However, as the Company advances on its planned, and previously announced, exploration, feasibility and mine development programs, it will initiate the process of obtaining regulatory approval for dewatering and to re-start mining operations.

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, Mount Pleasant 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".

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.

No securities commission or regulatory authority has approved or disapproved the contents of this press release.

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

[Popeye82]

"Adex Mining Announces Early Start to Tailings Dam Upgrade at Mount Pleasant

Toronto - March 3, 2008 - Adex Mining Inc. ("Adex" or the "Company") (TSX-V: ADE) is pleased to announce that Monteith Underground Services Ltd. ("Monteith") of Fredericton, New Brunswick has begun work ahead of schedule on the preparation of materials to be used for the upgrade of the existing Tailings Dam at the Company's Mount Pleasant Property. Additional preliminary work will be done by Monteith on the emergency spillway of the Tailings Dam.

The upgrade work on the existing Tailings Dam is underway to assure compliance with present day structural and environmental guidelines.

Further to the Company's press release of January 9, 2008, Monteith will complete the balance of the construction work on the Tailings Dam as scheduled between June 2, 2008 and August 29, 2008.

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-copper mineralization. Located in Charlotte County, New Brunswick, Mount Pleasant 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".

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.

FOR FURTHER INFORMATION PLEASE CONTACT:
Kabir Ahmed
President, Chief Executive Officer and Director
Adex Mining Inc.
1-866-508-2339 (ADEX)
Email: [e-mail]
Website: www.adexmining.com
No securities commission or regulatory authority has approved or disapproved the contents of this press release.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release."

[Popeye82]

Obwohl den meisten das wohl schon bekannt ist,
mal die kurz -maximal mittelfr. Ziele aus der letzten
Präsentation zusammengefasst(22.10.07):

_____________________________________________________________
Initial Development Plan
Next 12 months (jetzt also etwa gute 6 Monate)

Dean Thibault – Project Manager
-Scoping Study to assess production strategies at the Mine
-First Phase Bench Scale Metallurgical Testing to develop recovery and extraction process for both Tungsten-Moly and Tin-Indium circuits
-Upgrading existing tailings dam
-Environmental development planning
-Minewater treatability process development study


Dr. Trevor Boyd – Project Manager
-Design and oversee Drill Program as per Recommended Work Program
-Upgrade existing resources
-Expand size of the resource and to identify areas of continuous mineralization between Saddle Zone and Fire Tower Zone
-Provide fresh core samples for confirmation bench scale metallurgical testing
_______________________________________________________________

Committed Budget
Initial Development Plan (next 12 months)

Scoping Study $100,000

Tailings Dam Upgrade $250,000

Mine Water Treatability Study $ 50,000

Environmental Planning $ 25,000

First Phase Metallurgical Testing $400,000

Exploration and Drill Program $3,000,000*
- Add 2nd drill
- Ground and IP Survey
___________________________________________________________

Total $3,825,000

* Based on successful completion of flow-through financing announced Oct.22.07
__________________________________________________________

Site Development Work

-Tailings Pond: dike to be raised 1 meter and maintenance
work to be completed
-Onsite power transformer fully refurbished
-Access roads repaired and upgraded
-Main operations buildings – undergoing renovations
__________________________________________________________

Metallurgy

-Process identified for the production of tungsten and
molybdenum from the Fire Tower; tin and indium for North Zone
-Improved metal purity
-Optimized metal recovery
-Integrated process flow sheet to be optimized over next 12 months
___________________________________________________________

Drilling Contract – Announced October 15th

-Flow through financing - announced Oct. 22 to raise up to $3 million
-Lantech Drilling Services to commence drilling by March 1, 2008
-Minimum 5,000 meters of drilling on Fire Tower, North, and Deep Tin zones – scope of work to be reviewed- potentially doubled

Objectives:
-Expand and upgrade the resource estimates within the NI 43-101 framework
-Provide fresh material to confirm metallurgical processes
____________________________________________________________

Regulatory Pathway to Resuming Production

Working closely with industry and governmental counterparts
-New Brunswick Ministry of Environment
-New Brunswick Ministry of Natural Resources

Working with the regulatory process for
-Approval to operate
-De-watering
-Feasibility and Mine Development plan

===> Mining License
___________________________________________________________

Revival of Mount Pleasant – Future Benefits to New Brunswick

-Mining 650 thousand tonnes of ore per year => $60-$100 million
of metals 2400 tonnes/day – economies of scale
-Back to 200-250 employees => $15-$20 million payroll
-Use of local professionals, consultants, service providers,
e.g.: Thibault & Associates; ADI Limited; Lantech Drilling
-Spin off to the community: payroll dollars spent on housing
and family basics

Müsste ja in etwa bekannt sein, nur zur besseren Übersicht vielleicht nochmal. (Präsentation S18-24)

[kutowski]

ist schon jämmerlich wie ADEX gerade abgestraft wird. Habe in den nächsten 3 Wochen wieder Cash frei (Ablauf Spekufrist), da werd ich dann wohl nochmal nachlegen.

Hier noch eine Einschätzung, die ich im Stockhouse gefunden haben:

http://www.stockhouse.com/Columnists/2008/April/7/Junior-min…

Allen weiterhin gutes Sitzfleisch - wird schon werden

[Klardoch]

Das heutige, plötzliche Kaufinteresse könnte in folgendem Artikel begründet sein...



microcap.com update on ADE

Based Upon Developments Overseas, ADE represents Tremendous Value

This week I am following up on important developments in the Tin market and a $0.29 stock we introduced last month. But first some comments on its relevance to coal which has pushed some junior stocks to gains of 1700% in a month.

Last August we discussed the growing importance of coal and how investors may want to take a hard look at coal stocks. At the time I felt Grand Cache Coal (GCE.T) would make a strong junior play but unfortunately never followed up on it as the stock was struggling financially and had little market interest. That was at $0.80 - today it trades at $8.21 !

Interest across the sector has been broad based as we've seen huge rallies in juniors like Goldsource, their area players, and even a coal property acquistion from CMK.T resulted in a 200% two day rally. Goldsource (GXS.V) as many are aware, is up 1700% in the past month !

There are many high profile coal plays around and a few unknown ones. One in particular that very few know exists, is Sharpe Resources (SHO.H). Its a $0.17 stock trading on the Canadian NEX (a Canadian OTC equivalent) so it can be tougher to buy - many of these in time graduate to the TSX.V. What makes Sharpe worth a look is the fact they are targetting Coal Bed Methane (CBM) on 100% owned coal properties (17,000 acres) in Virginia.

In addition, they announced in April that they are acquiring production ready coal mines in Kentucky that have struggled financially (typically due to poor management). It appears they have closed on one, close on another, and looking at several more to possibly consolidate the industry in that region. Given the high price of coal and possibility to finance through institutional investors (who recognize the sector demand), this may be a very smart strategy. I don't like the idea it trades on NEX right now, but I really like the business model and the fact the stock is unknown. May we worth further research for speculators.

www.sharperesourcescorporation.com

This Brings us to Tin and Adex Mining (ADE.V $0.26)
www.adexmining.com

What caught my attention last fall with coal, was the fact Evy Hambro in London (manages one of the most successfull gold funds in the world), was calling for an Asian Coal Crisis. Prices at the time were already rising but since fall 2007, the coal sector (as already discussed) has done exceptionally well. The key with mining stocks is trying to spot developing trends early. This entails speculating ahead of the crowd to try and get the best price. It requires patience and a higher risk tolerance.

Since our report on Adex April 7th at $0.29, the share price has done nothing. You can review that original report on our archive -

http://www.stockhouse.com/Blogs/ViewDetailedPost.aspx?p=7135…

However, the Tin cash price per tonne has risen another 20% to $24,300 and hit a record of $25,500 on May 9th. Since the start of the year, Tin has risen nearly 60% on supply concerns from Indonesia (world's 2nd largest producer) and increased consumption from China (the world's largest producer). This is causing overall supply concerns for the rest of the world. If you pull up a chart from the London Metal Exchange from Jan 1998 to date, you will see a dramatic rise in Tin prices not only since the first of the year, but in the past two years.

http://www.lme.co.uk/tin_graphs.asp

Adex is a very interesting story not only because of its large resource base (tin, tungsten, molybdenum, and indium) but because BHP spent $150 million to put it into production in 1982. The infrastructure on this property is tremendous. Especially given the low market capitalization of Adex. Production was stopped in 1985 when metal prices for tungsten collapsed. Adex acquired the mine and put it into care-and- maintenance in 1995 and has held the asset until market conditions improved - which they have now, dramatically.

Just like coal however (which was dramatically overlooked), our primary interest resides with the Tin as a couple global developments have arisen this month which makes this property very important. According to government reports, The Adex property hosts the world's largest indium deposit and north america's largest Tin deposit.

While Tin has risen 60% this year (and 20% in the past six weeks), north american investors have continued to ignore the metal. Much the same way 99% of them ignored coal until the rest of the cattle boarded the truck for slaughter and thought it was a good idea buying stocks like Goldsource when they were already up 1700% in a month. Nothing like managing your risk !

Three recent developments in the Tin market are very important to the valuation of the Adex properties - at least to foreign investors if north american's do not recognize the underlying value here.

1) Trials have started in Indonesia for the Koba Tin mining case. This is the 2nd case of alleged illegal mining involving Koba Tin and analysts believe the continued legal problems could impact an already tight market. The government has prohibited Koba from using sub-contractors to mine its tin ore since the case emerged. This contributed to the record price we saw for tin in early May but the supply/demand fundamentals continue to favor high prices.

2) In Australia, Wolf Minerals is restarting production at an old tungsten/tin mine which will employ 500 people. This same scenario is emerging in many regions where old tin mines existed as the economics have improved dramatically. None are large enough to make an impact on metal prices.

3) Steelguru.com is reporting this weekend that high tin prices are encouraging several companies in East Germany to re examine the potential for tin mining in a region that saw production back in the 15th Century. These properties apparently host large but low grade resources yet the economics favor their re-activation. Two of the largest projects are controlled by Deutsche Rohstoff AG, a new mining house established in 2006 to focus on the exploitation of relatively high cost but well developed projects in politically and economically stable countries. Tinco and HC Starck are also looking at other potential tin operations in the region.

The two projects being considered by Deutsche Rohstoff contain an estimated combined tin resource of 181,000 tonnes and are associated with zinc and indium - the company has made this the prime focus of its attention. Grades are in the range of 0.26% but higher grade regions have 0.4%

This German company sees strong value in 181,000 tonnes of tin with a grade of 0.4% or below - compare this to the Adex property which not only has major infrastructure and profitable other metals associated with it, but their North and Deep Tin zones have a 43-101 non-compliant historical total resource of 3,645,429 tonnes of 0.80% Tin - this is what the government referred to as the largest Tin deposit in north america.

So What Do North American Investors Think this is Worth ?

Unlike the Germans, Australians, and everyone else it seems... very little if you consider this:

a) Adex has $9 million in cash and 74 million shares outstanding = $0.12/share cash

b) A $0.30 share price leaves $0.18/share valued on the minerals & mine infrastructure = $13 million. Yet you have a mine that BHP spent $150 million on 26 years ago - simply take a look at the website to see the mine infrastructure which could realistically cost $100 million to build from scratch today.

www.adexmining.com

c) The value of the Tin alone is worth way more than $13 million, yet they also have tungsten, indium and molybdenum.

Herd Mentality

When it comes to speculating on penny stocks, I believe a person first needs to assess risk. You need to try and spot trends early, and in particular, try to spot real value. In the case of Adex, its tough finding much more value than this. I'm honestly not sure what people look for sometimes when it comes to valuation, but I do know strong value when I see it. Even if it means sitting on something longer term to realize that value.

Grand Cache (GCE) last fall was a perfect example where you couldn't give it away in the $0.60's or $0.70's yet investors are prepared to pile money into it 900% higher because everyone else is. Goldsource (GXS.V) the same thing. Just because they have a coal discovery in northern Saskatchewan, why would anyone buy the stock after it is already up 1700% in a month. This is craziness. For it to even double from there it has to go to $15 yet no one has examined how they plan on competing with the likes of Sherritt or Fording who dominate the coal market in Canada and have significant excess capacity and capital to control their markets.

Congratulations to those who have made money along the way on stocks like this, but those who buy at the highs because they are sucked into the hype, will likely always loose money on junior exploration stocks. This about spotting true value before everyone else, and trying to reduce risk along the way by acquiring assets well below market value.

If north american investors do not recognize value in their own back yard, then I'm sure over time the Chinese, Europeans and those from the Middle East will - while we sit idly buy watching foreign investors snap up control of our undervalued companies.

[Klardoch]

http://www.financialpost.com/money/story.html?id=546028


Indium gets on screen
Used In Flat TVs

Stephane Malhomme, Financial Post Published: Wednesday, May 28, 2008

You many not know what indium is, but anyone who owns a flat-screen TV is looking at some every time it's turned on.
The little-known metal is a critical component in the manufacture of flat-screen displays, and that includes screens for cellphones, Black-Berrys and other smart-phones, accounting for 85% of the world's indium consumption. That market alone is growing, at a rate of 30% a year, as legions of television fans turf their old bulky sets for sleek state-of-the-art home entertainment systems.

This trend is set to go into overdrive in early 2009, when all U. S.TV stations will be required to shift to digital broadcasting, fuelling the sale of modern flat-panel sets.

The result of growing demand is that the price of indium has skyrocketed. Between 2001 and 2005, it jumped from $60 per kilogram to $1,100. This created a booming business in recycled indium, which pushed prices back down as low as $430 last year. But those who monitor the rare-metals market say we're poised for another surge as demand grows and recycled supplies are exhausted.

This potential for another lift in indium could boost tiny Adex Mining Inc. (ADE /TSX. V), which controls what might be, according to Natural Resources Canada, "the world's larget reserve of indium." Adex chief executive Kabir Ahmed is confident that upgraded results that will soon be available will boost Adex's share price, which has been rather dormant lately, trading in the range of 28¢ to 35¢, down from its 52-week high of $1.33 in July, 2007. "We have a market cap of about $25-million, but I believe that we are truly undervalued at the current time," he says.

The company is now in the process of recommissioning an old tungsten mine at Mount Pleasant, N. B., formerly operated by a division of global mining giant BHP Billiton. One vein on the property contains 3.6 million tonnes of tin-indium ore, with indium levels at 107 parts per million. There is also a second vein of tungsten and molybdenum, both of which have appreciated of late. Tungsten is widely used in the steel industry and molybdenum is an anti-corrosive used in pipelines.

"Indium is a small market, but a very significant one," Mr. Ahmed says. "Having this metal alongside [others] will help diversify production and make the most of price fluctuations."

Adex is currently working to expand on and upgrade reserve estimates and to study other areas of mineralization on the Mount Pleasant property. Once these pending estimates are confirmed, the company will move aggressively into feasibility study stage and start exploitation as soon as possible.

BHP shut the Mount Pleasant mine in 1985, at a time of depressed metal prices. Adex purchased the property in 1995, and conducted preliminary exploration work on its tin-indium deposits. Despite promising initial results, however, Adex was forced to place the property in "care and maintenance" mode in 1997, due to economic uncertainty and low metal prices.

Today, the industry outlook is vastly improved, significantly reinforcing the economic potential of the Mount Pleasant property, Mr. Ahmed says. Demand for tungsten, molybdenum, tin and indium has risen sharply, fuelled by new technologies and rapid growth in the developing world. Mr. Ahmed said the beauty of this mine is that it could be reopened with only minor infrastructure upgrades, and that it has a tailings pond that allows refining the same ground multiple times.

Part of the problem in mining indium, however, is that the rare metal is used in minute quantities, so there's only so much that can be mined before the market would be flooded, sending prices plunging again.

Take flat screens, instance. The indium tin oxide film applied on glass is a microscopic 250 nanometres thick. "Even on a large flat TV screen, there's maximum $2 to $3 worth of [the metal]," says Brian O'Neill, indium materials manager at AIM Specialty, a subsidiary of Montrealbased American Iron & Metal that deals only in indium.

He estimates that indium production for 2008, the highest ever, will still only be a rather puny 1,300 tonnes, or $850-million for the entire industry at current prices.

"Say you produce about 10 tonnes per year, you will make $6.5-million," says Mr. O'Neill. "That's negligible, compared to the costs of setting up a mine only for that metal."

The other issue is that mining for indium now competes directly with recycled sources of the rare metal, slashing prices. But indium prices are bouncing back and are already topping the $600-mark.

However bright the outlook for indium, industry experts say it may not yet be economically viable to open new mines dedicated to indium alone. Mining companies like Adex are simply hoping the recent boost, and potential for higher prices, will bolster their revenue as they continue to mine more common metals, such as tin, zinc, copper and gold. But eventually, Mr. Ahmed says, it's possible the primary exploitation of the mine could actually shift to indium instead of tin, if prices keep rising.

New applications for the metal are on the horizon, such as photovoltaic cells. These are used in solar panels, a growing business in an energy-starved world that is also becoming more environmentally conscious. Along with display-screen use, this could fuel indium consumption by 40% annually.

As well, recent developments on the supply side of the equation are also bound to push up prices. China, currently the largest producer, recently slapped export restrictions on indium, boosting prices. As well, SMG Indium Group, based in New Jersey, recently applied to the SEC for an initial public offering to purchase and stockpile indium, in the hope of seeing prices soar.

SMG management could not comment on their current business, as their IPO filing is under review. Still, chief operating officer Richard Biele sounds optimistic, saying: "Believe me, I wish I could be shouting it from the rooftops."

[Daddy73]

Interview:

June 2008
Mergermarket.com

Adex Mining could attract takeover interest; will need financing, CEO says
By Cheryl Thompson

Adex Mining (TSE:ADE) of Toronto, Ontario, the tungsten and molybdenum explorer, could attract takeover interest down the road, said CEO Kabir Ahmed.

Adex’s flagship property, Mount Pleasant, is located in New Brunswick. It has a 43-101 compliant inferred resource of 13 million tonnes of tungsten and molybdenum. It also has a 43-101 non-compliant historical resource of 3.6 million tonnes of tin, and a lesser amount of indium. The mine was previously an active tungsten mine operated by Billiton Exploration Canada in the 1980s.

“Generally speaking, there is a lot of M&A in the marketplace. Thompson Creek Metals (TCM), for example, they recently did a huge financing and they’re interested in acquisition to augment their production supply,” Ahmed said, adding that “as we create value by pushing towards our feasibility study, we’ll be an attractive target to majors like that.” While Ahmed said the company is focused on reaching production, he said that because Adex has a portfolio of minerals that are in high demand, but short supply, it is possible the company might become attractive.

In April, TCM announced in an annual report that the company has the financial capacity to make acquisitions.

Ahmed said that the company has a drilling program that will be completed later this month; in August, Adex should be in a position to provide an updated resource estimate in both the measured and indicated categories, he added.

Meanwhile, Ahmed said that Adex will have financing needs in the near future. “We’d look to do debt financing or a combination of debt and equity. We hope to raise CAD 10m (USD 9.89m) to 15m (USD 14.83m) for feasibility; we estimate we’ll need CAD 100m (USD 98.9m) to 150m (USD 148.4m) to finance the mine,” he added.

Adex has raised money through Jennings Capital, Paradigm Capital, Kingsdale Capital, Westwind Partners and Canaccord Capital, in the past.

“We’re in a unique position as we’re sitting on a past producing mine,” he added. Adex has a current market cap of USD 25m.

by Cheryl Thompson