Ruby Creek Project � Exploration Update
January
20, 2009 - Vancouver, British
Columbia
Adanac
Molybdenum Corporation (�Adanac or the Company�, -
TSX: AUA, Pink Sheets: AUAYF, Frankfurt: A9N)
announces the results for the final 13 holes from its Ruby Creek 2007/2008
diamond drilling program.
2007/2008 Diamond Drill
Program
The program includes 60 holes from AD-372 to AD-341
including 10 condemnation holes:
AD-372 to AD-374� results previously reported on September 13, 2007
AD-375 to AD-383 results previously reported on July 10, 2008
AD-384 to AD-393 condemnation holes
AD-394 to AD-402 results previously reported on September 30, 2008
AD-403 to AD-409 results previously reported on October 21, 2008
AD-410 ������������������� results
reported in this news release
AD-411 to AD-416 results previously reported on September 30, 2008
AD-417 to AD-419 results reported in this news release
AD-420 to AD-422� results previously reported on October 21, 2008
AD-423 to AD-431� results reported in this news release
Attachment 2 to this news release provides location
coordinates and significant assays and their intervals, for all 60 holes
including condemnation holes (AD-372 through AD-431). Attachment 1 shows data
pertinent to the holes being reported in this news release.� The locations have recently been surveyed by
Underhill Geomatics of Whitehorse. The release also includes a drill-plan
Attachment 3 that shows locations of all 50 exploration
holes and 10 condemnation holes in the 2007/2008 program and also highlights
the 13 holes in this news release.
The Ruby Creek molybdenum deposit is a stockwork
vein occurrence and true widths are unknown at this time.
13 Hole Update in this
Release
The Attachment 3 drill-plan shows
the 13 holes for which assay determinations are reported in this news release
including holes AD-410, AD-417 to AD-419 and AD-423 to AD-431.� Of these, all but three (AD-417 to AD-419)
were collared within the Company�s, feasibility-defined, open pit surface
outline.
Drill-hole AD-410 was collared in
the north wall of the pit and was angled to the southeast and assisted in
defining the location of the Adera fault.
Holes AD-423 to AD-427 (inclusive)
have the same orientation and were collared to the south of the Adera fault to
the north of Ruby Creek water feature.� The
holes were used to explore for mineralization below the proposed pit floor of
the currently defined open pit.� Drill-hole
AD-428 was positioned south of the Ruby Creek water feature and was drilled at
a moderate angle to the northwest, to determine the thickness of the
mineralized blanket in the southwest part of the deposit and to locate an
intrusion contact.
AD-429, AD-430 and AD-431 are
vertical drill-holes collared within the boundaries of the proposed open pit
south of the Ruby Creek water feature and were drilled to explore for
mineralization in a previously relatively poorly drilled fault block.
Significant
Intercepts Include:
Hole
AD-423 contains 292.61
meters of 0.078% Mo
Hole
AD-425 contains 176.78
meters of 0.113% Mo
Hole
AD-427 contains 185.93
meters of 0.099% Mo
Hole
AD-430 contains 134.11
meters of 0.067% Mo
These and other previously reported
intercepts confirm the presence of a substantial thickness of higher grade
mineralization in the proposed �starter pit� general area, at shallow depth.
Mineralization Extension:
Drill-holes AD-417, AD-418 and
AD-419 were, respectively, drilled vertically, to the northwest and to the
northeast from a single pad located north of the Adera fault.� These�
step-out holes were designed to test for higher grade mineralization to
the southwest of prior exploration drilling and particularly inclined hole
AD-416 which intersected 182.88
meters of 0.097% Mo including 15.25 meters of 0.715%
Mo.
Hole AD-417 contains� 57.91 meters of 0.065% Mo and
��������������������������������������� 42.67 meters of 0.249%
Mo
Hole AD-418 contains� 33.53 meters of 0.035% Mo
Hole AD-419 contains� � 3.05 meters of 0.216%
Mo and
��� 79.25 meters of 0.042% Mo
The 2007/2008 program is expected to
add significantly to mineral resources and the results confirm that the deposit
is open to the north and west and that there is considerable potential for
higher grade mineralization at depth near the head of the Ruby Creek valley. �
Future News Releases
In 2006, Golder Associates Ltd
calculated that the Ruby Creek deposit contained a NI 43-101 compliant measured
and indicated mineral resource of 212.9 million tonnes of 0.063% Mo at a 0.04%
cut-off. Adanac has re-engaged Golder Associates Ltd and over the next several
weeks they are expected to include the 2007/2008 drill program results in the
Ruby Creek block model data set and will recalculate the mineral resource.� The results will be released when they are
available and Adanac expects that the new mineral resources will be
significantly increased when the 2007/2008 drill program results are included.
CEO Comment
Peter R Jones, Adanac Chairman and CEO said
"The higher Molybdenum grades in the most recent 13 hole suite is
impressive and together with prior results should add considerably to the new
mineral resource recalculation by Golder�s�.�
He went on to say, �Adanac is indebted to Robert
Pinsent PhD., P. Geo. especially for the exploration work he
has done over the last two years and the excellent results achieved�.
Qualified Person
This news release was reviewed by Robert
Pinsent, PhD., P. Geo., a qualified person recognized under
National Instrument 43-101.
Attachments:
1.�������� Ruby
Creek 13 hole update table December 10, 2008
2. ������� Ruby
Creek final 60 hole table 2007/2008 summary to December 10, 2008
3��������� Ruby
Creek 50 exploration hole plan (excluding condemnation holes)
If a reader is unable to
activate the link to attachments then please visit the Adanac website at www.adanacmoly.com
where the attachments are included as part of the news release.
About Adanac Molybdenum
Corporation
Adanac
Molybdenum Corporation is listed on the TSX and Frankfurt exchanges and owns
the Ruby Creek Molybdenum Project in northern British
Columbia. The Company has advanced the project through
feasibility studies, a production decision and has previously ordered long-lead
equipment, completed permitting for construction, constructed a road to the
site and secured US$80 million in bridge financing.
Adanac Restructuring Process
Readers are reminded that, on December 19, 2008, Adanac obtained an
Initial Order under the Companies'
Creditors Arrangement Act (the "CCAA") as part of its
intention to restructure its business, including primarily its debt. In that
regard, Adanac has curtailed its business and ceased exploration and
development at the Ruby Creek site. Accordingly, notwithstanding the
exploration results described herein, the value of the Company's shares and the
effect of the exploration results thereon are unknown. Readers are invited
to read the other press releases issued by the Company concerning its CCAA
proceedings, and to visit the website of KPMG Inc., the Monitor appointed in
those proceedings, at: www.kpmg.ca/adanac
Information Contact
Peter R. Jones � Chairman & CEO
Suite 200 � 2055 152 Street, Surrey,
B.C.� V4A 4N7
Telephone: 604-535-6834��� Facsimile:
604-536-8411
Email: info@adanacmoly.com
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