| We interviewed Adanac Molybdenum
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| | paper. That's about a 13-month project
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| executive chairman Larry Reaugh about the
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| | and will cost you up to C$15 million. So,
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| dozens of junior resource companies,
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| | now you move it through the environmental
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| which now proclaim they are part of the
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| | stage. That can take up to 3.5 years.
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| Molybdenum Bull Market. His company
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| | StockInterview: Many mining projects
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| appears as a potential molybdenum
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| | around the world get stalled because of
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| producer on the horizon.
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| | bad relationships with the native
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| Since the beginning of this year,
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| | inhabitants. Please tell us about
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| Reaugh's company has been riding the
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| | Adanac's relationship with the First
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| 'moly wave.' Institutions and investors
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| | Nation of Canada.
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| are climbing aboard as greater interest
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| | Larry Reaugh: If you don't have a good
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| emerges in the silvery-white metal, which
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| | transparent relationship with the natives
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| adds both hardness and anti-corrosive
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| | and the locals, and you don't include
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| properties to everything from energy
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| | them all the way through, you are not
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| pipelines and nuclear power plant
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| | going to have ease of getting your
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| condensers to desalination plants,
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| | social, economic and environmental
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| automotive parts and air pollution
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| | permits done. When we got involved up
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| systems for coal-fired power plants.
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| | there, the first thing that we did was
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| We posed five questions to Larry Reaugh
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| | contact the local band in the area. We
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| to help separate the hype from the
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| | met with the consul, basically gave them
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| reality of the current molybdenum mania.
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| | our plans. They brought in their
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| StockInterview: Of all the molybdenum
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| | consultants, and as each problem came up,
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| companies out there, how do you know
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| | we worked our way through it. They became
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| which are going to become economic?
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| | a big part of working through to the
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| Larry Reaugh: You can really only tell
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| | solution. They know that there's an
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| once the bankable feasibility is done.
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| | impact benefits agreement that we will be
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| The bankable really narrows down the
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| | negotiating over the next couple of
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| resource itself into a reserve and that
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| | months. Socially, this is a big economic
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| can change. It's the only thing that can
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| | boost for everybody in the area. If you
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| tell you with any assurance that a
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| | can help them to raise their industry
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| project can move ahead and make money.
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| | awareness in having off-spins from that
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| You should be able to take it to the
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| | mine - other industries that they can
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| bank, and they should finance you to go
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| | develop, then you are doing a good job of
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| into production.
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| | being a good corporate citizen, not just
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| StockInterview: Please explain the
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| | to the native groups but also to the
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| timeline and the process to move a moly
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| | entire area. If you don't think that way,
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| project from the resource stage all the
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| | then you are going to have problems
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| way through the bankable feasibility and
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| | before you get going.
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| permitting stages.
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| | StockInterview: What steps will you have
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| Larry Reaugh: By the time you get to the
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| | to take to begin production after you get
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| resource stage, you should already have
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| | your mining permits?
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| your baseline study and your
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| | Larry Reaugh: Once the environmental
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| environmental permitting started. You
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| | permits are in, it'll be construction.
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| should have already made contact with all
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| | That will take about 18 months. That will
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| the various levels of government and
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| | be right from the ground up - from
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| stakeholders in the area to hire a
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| | breaking the soil to laying the
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| qualified engineering firm - one that has
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| | foundations to pre-stripping the pit to
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| impeccable credentials to do the
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| | laying down the tailings pond and the
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| pre-feasibility. And also apply for your
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| | waste dump site.
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| mining lease at that time. Once the
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| | StockInterview: The molybdenum mining
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| pre-feasibility is done, that gives you
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| | market is robust right now. Why should
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| 30 to 40 percent certainty on the
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| | investors consider Adanac as opposed to
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| project. You take the results from those
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| | other moly companies?
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| and then decide to move right into the
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| | Larry Reaugh: If you go to our site, you
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| feasibility of those if it's at all
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| | will see that the bankable feasibility is
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| positive. Eventually when you get into
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| | calling for a three-year payback on a
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| the bankable feasibility, then you have
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| | C$450 million investment. We believe that
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| another 10 to 20 percent assurance that
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| | that is obtainable. The project is way
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| the project will bear fruit at the end of
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| | ahead of its peers. I don't think there's
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| the day. A bankable feasibility gives you
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| | anybody else that's breaking ground this
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| reserves. Once you get reserves, you can
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| | summer on a project of this size. Here's
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| actually put a dollar number value to it.
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| | a company that's trading at a very low
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| That gives you enough of a grounding to
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| | market cap, which leaves a very great
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| it in which to do the detailed mining
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| | entry point for a mine that could be
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| That includes the mining plans for your
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| | producing by the last quarter of 2008 and
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| piping, your water, your foundation
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| | certainly full production by the first
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| layouts, your site plans. Every Nth
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| | quarter of 2009.
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| degree of construction that's going to
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| | COPYRIGHT© 2007 by StockInterview, Inc.
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| take place in that plant has to be put on
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| | ALL RIGHTS RESERVED.
|
