latest resource report tomorrow or, page-2

Long and strong
Mr. Reaugh:the real attraction of his company's mine lies not only in what he believes is a strong and growing demand for moly, but also in the fact that AUA is the only publicly-traded pure moly company on the market in its size category. He said it is also far closer to having an operational mine than competitors. We have an 18 month lead on any other company, he added, suggesting that this gives investors in his company a real first mover advantage over anyone else who might enter the moly market, as well as capital payback at higher prices of moly.
HOI:
Both of these companies are traded on the TSX Venture Exchange. http://www.stockwatch.com is an excellent website that I use to get twenty minute old quotes. This website gives me bid, offer, size, news, last ten trades and charts all for free; check it out.


ADANAC MOLY CORP.


AUA FOR CANADIAN QUOTES AND ANCGF IN THE US MARKETS.


As I analyze AUA I can’t help but sit back in my chair and go WOW! AUA has the Ruby Creek Property near Atlin in Northern B.C. This property is no stranger to the moly industry. Twice in the past, Kerr Addison and Placer Development took this property through the feasibility stage. In 1980 Placer fully permitted this project and was ready to put it into production before moly prices fell to $2.00/lb. Placer committed to do this with a net 60% interest. AUA now holds a 100% interest and moly prices are sitting pretty above $30.00/lb.


AUA projects to complete their Full Feasibility in Jan.-Feb. 2006 and are in the process of applying for all permits as I write. AUA projects they will receive all permits by mid year 2006.


To top this off, a wholly owned subsidiary, Traxys, of the largest steel producing company in the world, Arcelor, signed an offtake agreement with AUA in June giving Traxys exclusive rights to market AUA’s moly world-wide to end users. I have to believe that the largest steel producing company in the world has a very good understanding of the need to develop additional moly supplies to meet the ever-growing demand. Traxys approached AUA after doing six months of homework and due diligence.


In December AUA will sit down with Traxys in an attempt to finalize an agreement giving Traxys the right to buy X percentage of AUA’s moly at a stipulated price for a guaranteed period of years. If successful in reaching an agreement with these people AUA will be able to bank finance this project as the lenders will have no doubt that their invested capital and interest will be returned.


If AUA and Traxys reach an agreement; I personally believe that financing will be easy to achieve as it would make no sense for Arcelor Traxys to do a deal with AUA without knowing the financing will fall in place. I believe the largest steel producing company in the world will bring financing to the table.


Arcelor, on November 11, announced that they have budgeted $5,900,000,000 for acquisitions. Common sense leads me to believe that Arcelor would like to lock up a guaranteed supply of moly at a very competitive price. This guaranteed supply of moly will fill a very important void within Arcelor. Working with Arcelor, or any other major steel producing company, would be a win-win situation for both companies.


It is important to remember that Adanac’s Ruby Creek Moly Mine will be the first major producing moly mine to come into production. This gives Adanac Moly Corp. a terrific advantage over other moly companies that the majors are fully aware of.


Production is expected by the end of 2007. Pre-feasibility cost estimates range from $300,000,000-$400,000,000 with internal rates of return estimated at 44% on the lower cost and 28% on the higher cost. Production will consist of processing 20,000 ton/day and a yield of 35,000-40,000 lbs. moly per day. Operating costs are expected to fall into the low quartile of producers because this is a pure moly play with no expensive sulphides to remove from the ore.


The most important points to understand with AUA:

1) The feasibility study is underway and should be complete in January –February 2006.

2) All permits are in the process of being applied for as I write and should be in hand by mid 2006.

3) In December AUA will sit down in an attempt to finalize an agreement with a wholly owned subsidiary of the largest steel producing company in the world that will enable AUA to access funding that will lead to production by the end of 2007 if successful.

4) AUA will be the first major moly mine to achieve production on the North American Continent in the last 30 years. When the majors turn their attention to the acquisition of moly they will direct their attention to the company that will be the first to bring production online.

5) AUA will be a pure moly producer: In other words the Ruby Creek Mine does not have copper and other impurities to separate from their moly. This makes the mine environmentally friendly and the ore very inexpensive to produce. Both these factors are very important in bringing a new mine online.


Rough “back of the napkin” numbers show me that the possibility exists, with current moly prices, showing that Ruby Creek is capable of returning $6,000,000,000 over the next twenty years to the fortunate souls who own it. The funny thing about all this is the fact that the total market cap. of AUA is roughly $40,000,000. As the investment world wakes up to the fact that moly is the metal of the 21st Century and AUA will be the first major mine to go into production on the North American Continent in the last 30 years; shareholders stand to reap profits of 10 X their investments over the next two years.


In my portfolios we own roughly 300,000 shares and I have no intention of selling any stock below $5.00/share. I personally believe that a major will surface and buy us out within two years. The longer it takes for a major to surface the higher the price I expect to receive for my shares.


I personally believe sophisticated investors and large pools of investment capital will soon recognize that moly is the metal of the 21st Century. Once this capital understands that moly prices are not going to collapse and that the growing demand for moly makes it imperative for properties, like Ruby Creek, to be developed then I believe you will see moly stocks perform in the same or better manner than uranium stocks have performed.


On a short term basis the stock is currently doing a private placement which will probably keep the stock in the $.60-$.65 Can. level. For those of you who invest in private placements this is one you should give me a call on.


this is from another forum in canada