AUA UPDATE from IR e-mail________________________
"It seems every time I turn around there is yet another molybdenum play popping up on my radar screen.
As much as it may be tempting to chase them all, one has to consider the various levels of development each project is in, then stay focused on those which have the highest likelihood of becoming a mine and those which are the furthest advanced.
As all of you know, it is relatively easy to find a metal in the ground, it becomes quite something else to prove it up and take it into production.
Take PAL for instance. Running as hot as a pistol on emotion and not a small amount of hype, yet their property is flanked by a ski resort, an airport, a conservation area complete with trails and a reservation. This is a property in fact which was owned by Larry Reaugh and held on to for 3 years, but was given up on by him due to the logistical and money problems which would be encountered in ever making it a mine.
In all of these late comers to "molymania", each have severe issues which would need to be dealt with. With some it's environmental, some it is money, some it is infrastructure and others it is all three.
I now offer you the reasons why Adanac is winning the race hands down and remains THE moly junior to own despite what the Johnny Come Lately's trying to catch the moly wave to greatness have to say.
Adanac is sitting on a historical proven resource (stage II feasibility study by Placer Dome) of 200 million pounds, this gives
them an in ground value at current market prices of over US$ 6 billion.
Thus far the company has completed 10,000 metres of drilling and all the assays are back and are in the process of being forwarded to AMEC PLC for a NI 43-101 reserve study to take the Ruby Creek project from a historical proven reserve not NI 43-101 compliant to a proven reserve under NI 43-101. This is obviously a huge step forward as once the reserve can be reported as proven within NI 43-101, funds and institutional buying will then be imminent as that is one of the major criteria they look for.
Klohn Crippen Consultants Ltd. has also completed the 2004 socioeconomic and environmental program and have submitted two reports to Adanac. The fisheries assessment and the environmental baseline study. They have now been awarded an $820,000.00 contract to complete the environmental and socioeconomic impact assessment work required to submit the requisite documentation to the regulatory agencies by the end of 2005.
The Ruby Creek project is nowhere near anything that would have locals up in arms about the project becoming a mine and in fact a very positive relationship has already been forged with First Nations with some already having been employed by Adanac and many looking forward to longer term gainful employment.
Its location is remote enough not to be an eyesore to those in the surrounding area and has road from the project to Atlin (roughly a 40 minute drive) and road from the project to the deep sea port of Skagway (roughly a 4 hour drive) which of course also means they do not have to build roads through places where some may not be too excited about seeing roads put through. Also, while on the topic of infrastructure, hydro is 100 KM away and can be brought to the property and tied into the Yukon power grid.
This of course shows how far advanced the project is already and illustrates the fact quite clearly that Adanac should not encounter a fraction of the hurdles that these latest comers will have to overcome.
With a move past $1.00 around the corner added to the NI 43-101 compliance and move to bankable pre-feasibility and feasibility expected this spring and summer with Klohn Crippen due to have the environmental and socioeconomic impact assessment work by the end of 2005, should have the funds and institutions scrambling for a position literally any time now. This obviously bodes well for those entering or accumulating shares at present levels.
It should be obvious taking all the above into consideration, that at $0.88 this makes AUA one of, if not the most under valued stocks in the sector today.
Those who agree and have written Adanac up thus far include John Kaiser, Andrew Muir, Bob Moriarty, European Gold Centre, David Kaiser (Red Baron Report) Ray Goldie of Salman Partners and Microcap Equity. Adanac continues to be followed but not written up as yet by many others and I expect these will follow soon, with some committed to doing so once certain criteria are met which they have to abide to, such as share price and the completion of the NI 43-101 reserve study.
This all comes together to prove once and for all, in the race for North American Molybdenum, Adanac is well in front of the pack and is the strongest by far of any with the most going for it from A to Z. It has been ever since 2003, when all these others were focused on concrete, patents, oil and gas etc. etc., and none were even giving a second thought to molybdenum.
Some things to consider when thinking of joining the latest member of the "Mineral of the Month Club" while you are already introduced to the founder.
Continuing to bring you the best and brightest,
Michael Alexander
President
Accelerated Capital Investments Ltd.
Phone: 519-471-3243
E-mail: alternative@rogers.com
Disclaimer: Projections are the opinion of Michael Alexander based
on many factors at hand such as historical grades and similar
models. Accelerated Capital receives a remuneration as investor and
public relations for Adanac Moly Corp., I am also invested in Adanac
personally." |
