ATLANTA, March 12, 2007 (PRIME NEWSWIRE) -- OTC Stock Review announces that it has published a report on Adanac Molybdenum Corporation (TSX-V:AUA) (Other OTC:AUAYF) (Frankfurt:A9N). According to its Bankable Feasibility Study, Adanac Molybdenum Corporation has 167.4 million pounds of Molybdenum reserves at its Ruby Creek project. At recent prices of $25.00 per pound, the value of the Ruby Creek deposit should be in excess of $4 billion. A grade increase could push it to $5 billion. If AUA can mine 12 to 15 million pounds of molybdenum per year, the company could cash flow $375 million a year with projected costs in between $75 and $82.5 million.
Adanac Molybdenum Corporation's mining permit is in active application, the board has been beefed up with industry experts, and the company is hiring competent management with construction and operations experience. Recently, the British Columbian Department of Highways has completed a $900,000 bridge and road upgrade on the Pine Creek haul road to the Ruby Creek mine. Construction on the mine is expected to begin this summer. Adnac Molybdenum Corporation recently announced a letter of understanding has been signed between the British Columbia government and the Tlingit River First Nation, offering support of its Ruby Creek project in northwestern, B.C. Most investors still don't understand the ramifications of this event, which is based on treating others the way you want to be treated, compromise and working together. This letter of understanding will see important First Nations issues being addressed at the same time as a critical environment process proceeds.
The price of molybdenum has increased over 1,000 percent in the past four years, settling at its current price of $26.25. According to the International Molybdenum Association, about 75% of all new molybdenum goes into metallurgical applications in the form of roasted molybdenite concentrate (Technical Mo Oxide) and Ferromolybdenum (FeMo). The balance of 25% of new molybdenum is consumed in products upgraded from molybdenite concentrate as Chemicals, Mo metal and Mo metal meltstock. Major end use sectors include; engineering and machinery, chemical & petrochemical, offshore vessels, tanks, heat exchangers, packaging, pulp and paper, energy generation, aircraft and aerospace, tubular products, tools, fasteners, catalysts, colors, pigments, and lubricants. Global trends that suggest that molybdenum will continue to be critical in facing technological challenges include; control of greenhouse emissions, vehicle weight reduction and trend towards higher strength materials, diesel engines for improved fuel efficiency, fuel cell powered vehicles, high pressure pipelines for long distance gas and oil transportation, and higher operating temperatures of fossil power plants for better efficiency and reduced emissions.
The complete report is available at http://www.otcstockreview.com/Files/AUAYF/Adanac_Molybdenum.pdf.
Links to additional information on Adanac Molybdenum Corporation are available at http://www.otcstockreview.com/auayf.htm or http://www.adanacmoly.com.
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