Adex studies production plans for Mount Pleasant

A feasibility study calls for production of tin and indium-copper zinc concentrates at the Mt. Pleasant project in southwestern New Brunswick.

Consulting firm Kvaerner Davy conducted the study, which rejected a plan by Adex Mining (AMG-T) to construct a 2,500-tonne-per-day mill, a tin concentrator, and a bioleaching plant to recover indium metal. The capital cost of such an operation, $102 million, was deemed too high, and the mine life too short. At prices of US$6.60 per kg for tin and US$250 per kg for indium, Adex had forecast annual revenue of $47.7 million and an annual operating cost of $42 million.

A preliminary financial analysis of the other option — production of tin and indium-copper-zinc concentrates — shows a higher rate of return, and Kvaerner Davy recommends additional drilling to increase reserves and the mine life.

Adex and parent company Malaysia Smelting are considering the recommendations and expect to reach a decision in April.