Level 15, 115 Pitt St, Sydney, NSW 2000All Mail to: GPO Box...

Level 15, 115 Pitt St, Sydney, NSW 2000
All Mail to: GPO Box 4492, Sydney, NSW 2001
Tel: +61 2 9223 3171 Fax: +61 2 9221 3018
Email: [email protected]
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ADV - Excellent Flotation Response in First Stage Testwork
February 19, 2007
Highlights:
• Consistent High Copper Recovery - ranging from 92.6 to 95.3%
• Good Quality Concentrate - final concentrate grade ranges from 27.2% Cu to 31.4% Cu
• Course Grind - these results were achieved using a cost efficient primary grind size of p80 -150 ìm
ADV Group (ASX : ADS) is pleased to announce the results of recently completed flotation testwork on composite samples prepared from drillhole BDH-2004 completed at the Jabal Sayid Zone 2. By way of background Hole BDH-2004 was the first drillhole completed by ADV and Vertex on their Jabal Sayid copper project. BDH-2004 returned an intersection of 122m at 2.74%Cu, 0.22g/t Au, 5g/t Ag and 0.08% Zn including 29m at 3.20% Cu and 33m at 3.42% Cu.
Prepared core samples were sent to Metcon Laboratories in Sydney Australia for testwork. The program was designed and supervised by Consultant Metallurgist Mr Ray Cantrell (Alphrai Pty Ltd). In the testwork two composites were selected from ten to evaluate and compare the flotation response with the historical testwork on Zone 4 by the BRGM (Bureau French Geological Survey). The testwork incorporated modified process conditions as compared to those developed by the BRGM. From the information available this appears to be the first flotation testwork undertaken on Zone 2 mineralisation.
Highlights of the testwork follow:
• Excellent copper flotation response at a much coarser primary grind size (p80 -150 ìm) than that selected by the BRGM for Zone 4 (p80 -80 ìm). This outcome has the potential for significant capital cost and operating cost reduction by reducing the required size of the grinding mills (Capex) and grinding media (Opex) in the comminution circuit.
• Good rougher flotation response (ranging from 92.6% to 95.3%) using both collectors tested (A238 and PAX) at varying primary grind sizes;
• High quality final concentrate grade after regrind (p80 -30 ìm) and 3 stages of cleaning using the preferred collector (A238) because of its selectivity against pyrite as compared with that used by the BRGM (PAX). Final concentrate grade ranged from 27.2% Cu to 31.4% Cu using A238;
• Precious Metal recovery of 35-50% into the concentrate. There is a strong relationship between the iron and sulphur recoveries with that for gold. These relationships suggest that pyrite also contains gold and the imposed flotation conditions will exclude this material with the rejected pyrite. Future testwork will evaluate various options to enhance recovery, such as a second float.

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Commenting on these results ADV Group Chairman, Mr Fletcher Quinn, said:-
“I think that this is a very encouraging start. We have shown that the copper floats well and at a much coarser grind than used by the BRGM. The implications of this are a much simpler flowsheet. This indicates the possibility of less capital expenditure in the grind circuit and lower operating costs through power and grinding media savings, than we had been anticipating.
These results suggest that for this mineralisation type at Zone 2, a plus 27% Cu concentrate can be produced at a copper recovery level in excess of 92%. Concentrate of this specification is in high demand under excellent terms to smelters worldwide.
These results again reinforce our view that Jabal Sayid is likely to rapidly emerge as a World class orebody and is another positive step reinforcing the extensive database of previous work now being built upon.”
Note 1: The information in this report that relates to Ore Processing Testwork is based on information compiled by Ray Cantrell, who consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
For further information please contact:
ADV Group Limited
Fletcher Quinn (Director) or Kris Knauer (Director)
(07) 3303 0625 (02) 9375 0108
Email – [email protected] [email protected]
Investor Relations
Andrew Mortimer
0433 894923
Email - [email protected]
BACKGROUND ON ADV GROUP AND VERTEX
ADV has previously announced that it is acquiring 100% of Vertex. Vertex has an exciting portfolio of Copper, Gold, and other Base and precious metal projects on the Arabian Shield in Saudi Arabia. The projects are held by Vertex’s 70% owned Saudi Arabian operating subsidiary Bariq Mining Ltd (“Bariq”). Bariq is currently earning a 50% interest in the Jabal Sayid project and holds a 100% interest in other projects including:
Jabal Shayban: gold/copper project is located on the Shayban Mineral belt, the south-eastern extension of the Mahd Adh Dhahab/Jabal Sayid mineral belt. A JORC compliant Measured and Indicated resource of 1.8Mt at 2.7 g/t Au, 23.1 g/t Ag and 0.47% Cu (253,000 oz Au Equiv.) was reported by the previous operator in 1999.
Jabal Baydan: zinc/gold project is located 10km from Jabal Shayban. An exploration target size for the mineralisation of 0.5-0.7 Mt at 15-18% Zn (100,000 t Zn) and 1-3 g/t Au (~40,000 oz Au) was estimated by a previous operator based on 24 drillholes.
Lahuf: is located 6 km from Mahd Adh Dhahab gold mine, a World-class epithermal gold project where historically more than 6 M oz of gold production has taken place. Lahuf has a JORC compliant Measured and Indicated resource of 1.2 Mt at 2.83 g/t Au (113,000 oz Au) and an Inferred resource of 0.4 Mt at 2.0 g/t Au (23,000 oz) in shallow, mainly oxide breccia veins reported by the previous operator in 1999.
Bari: project consists of lightly explored ancient gold workings covering a strike extent of some 1.4 km. Previous drill results included 39m at 7.32 g/t Au, 12.86 g/t Ag and 1.2% Zn and 84m at 6.75 g/t Au and 5.1 g/t Ag.
Wadi Kamal: project is a virtually unexplored layered ultramafic complex where the only recorded drill hole intersected 17m 0.53% Ni and 0.23% Cu with PGE’s up to 1.2 g/t.
Muraijib-Bil’iwy: project where limited (3) trenching of a major alteration system which cover areas varying from 150 m2 to 1,000 m2 intersected 32m at 1.75 g/t Au and 12m at 1.8 g/t Au.

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BACKGROUND ON JABAL SAYID PROJECT
The Jabal Sayid project is potentially a world class copper deposit where previous work, predominantly in the 1970’s and 1980’s, focused on a high grade underground development scenario. Work undertaken included approximately 50,000 metres of drilling, 5.5km of surface trenching, and 3.9km of underground development. . Tonnage and grade estimates were made using geostatistical modelling techniques based on the drilling and underground work by the BRGM for the Saudi Arabian Government but are not in compliance with the current JORC Code and cannot be stated. Estimates were made using a 1.5% Cu cut-off grade for a pre-feasibility study on a 1 M tpa underground mine scenario undertaken in 1985 (when the copper price was US$0.85 lb compared to the current price of US$2.65 lb).
A subsequent scoping study in the 1990’s indicated that the likely exploration target at Jabal Sayid is a 100-150Mt open cut orebody at 1-1.5% Cu with significant Au, Ag and Zn credits that could potentially be mined by open cut. The orebody consist of four known zones of mineralisation.
‘Zone’ 1 Zone 1 is the most southerly of the zones of mineralisation, with a gossanous surface expression that consists of a prominent east-west trending 30m high, 250m long and 50m wide outcrop of gossan. At depth, massive sulphides dip steeply to the southeast. The underground mineralisation is described by the BRGM as a 40m wide lens, that extends vertically for 150m, thereafter dipping steeply to the southeast, to a depth of at least 550m. The Saudi Geological Survey has anecdotally reported gold results, from a sampling program over the gossan however assay results cannot be currently located. This was planned to be investigated in the current program by holes BDH-1001 to BDH-1012, but owing to core poor recoveries, this program recommenced in January 2007 using an RC percussion drill. The BRGM did not include mineralisation from Zone 1, in the pre-feasibility study on a possible 1 Mtpa underground operation. As the majority of the previous drilling targeted massive sulphides below the surficial oxide zones, the Zone 1 gossan and oxide copper zones have not been extensively drilled and are targets of the current Vertex programs. Mineralisation also remains open at depth with the copper-rich massive sulphides become more zinc-rich. The BRGM have reported tonnes and grade of zinc-rich mineralisation in excess of the near surface copper-rich zones.
Zone 2 Was discovered in 1970 and is capped by a less prominent gossan than Zone 1. It is separated from Zone 1 by the East Valley fault which is interpreted to have a 300m horizontal displacement. Zone 2 forms a steep dipping northwest-southeast aligned tabular body with a bulge on the eastern side. Like Zone 1 the zone immediately below the gossan has never been specifically targeted by drilling. Mineralisation at Zone 2 is also open at depth and gold and silver were not routinely assayed. RC Drilling of shallow targets on Lode 2 commenced in January.
Zone 3 The most northerly of the zones of mineralisation does not outcrop at surface but some chlorite-sericite hydrothermal alteration with some minor sulphide mineralisation led to its discovery in 1972 at a depth of 200m below surface. Mineralisation is known to extend some 700 metres below surface. Zone 3 is poorly defined, structurally complex and the detailed geology of Zone 3 is yet to be resolved.
Zone 4 The most northerly of the zones of mineralisation Zone 4 was previously interpreted as blind, occurring 200m below surface and contains the majority of the historically identified underground mineralisation. Zone 4 is described as mushroom-shaped with a ‘stem’, aligned northwest-southeast, dipping to the east. Mineralisation is known to extend to at least 700m below surface and only minor gold and silver assaying was conducted. Vertex plans to test the near surface zone and drill into the top of the Zone 4 mineralisation with 4-5 near vertical core drillholes to 450-500m.
Mineralisation is also open at depth, with the deepest reported holes terminating in +3% Cu mineralisation. The BRGM modelled an Exploration Target (which was not included in the previous open cut Exploration Target) of 100,000t at >3% Cu per vertical metre, likely extending at least 200 metres below the existing resource. Should this zone extend for the minimum 200m, anticipated by the BRGM, this suggests an additional Exploration Target of 20Mt at > 3% Cu.