Hi CDWith a 100% interest in SCM Vellanar Company now places ADY...

Hi CD

With a 100% interest in SCM Vellanar Company now places ADY in a better position to sure up a JV and would obviously now hold a higher resource of iron. The reasons why mining was suspended is listed below as you no doubt would be aware of. Getting a JV would help prove up an accurate resource for mining purposes. ADY could pick up and dust itself off and be in a better position than before, with a high proven resource and once again establish production, but profitably and economically. ADY could just start the new year with a bang as you have pointed out, so it could be worth topping up.


FROM PRESENTATION BELOW:

In November 2008 once Admiralty Resources NL became the majority shareholder in
Minera Santa Barbara, a decision was made to suspend the mining and mineral
processing operations at the Japonesa Ore Body. This decision was based on three
considerations:
Mining was initiated on inferred and indicated ore resources and not on proven
ore reserves. This made accurate mine planning and mine production scheduling
impossible to achieve resulting in a variable quality of feed to the mineral
processing plant.
Continued mining operations executed on ore resources could adversely affect the
future exploitation of the ore body which would be executed on proven ore
reserves.
The dry electromagnetic drums were designed to process ore with a 3% humidity
factor. Water was encountered in the third benches of Pits 1 and 2 of the Japonesa
Ore Body and the humidity factor of the ore rose to over 7% which led to plugging
of the electromagnetic drums which in turn resulted in an unsatisfactory recovery
factors and unscheduled plant down time.