We had the opportunity to talk with Larry Reaugh, CEO and President, Ed Lee, Executive Vice President and Ken Reser, Investor Relations of Adanac Moly Corp and their associates at the PDAC 2005. We were impressed with their vision and plan for the company. All of the staff were enthusiastic and shared a sense of purpose for the company. Larry Reaugh has positioned Adanac Moly Corp to become the next major primary producing Molybdenum Company. President Reaugh said that by 2007, they will begin to mine molybdenum. He said their major mine, the Ruby Creek, will become a work horse; producing huge quantities of moly year after year.

In the mid-nineties, Larry Reaugh started following moly. He felt that moly sources would become inadequate to supply the demand. Larry was impressed with the rapid growth of China and its rapidly increasing needs for raw materials to meet its industrial and domestic expansion. He realized that moly was a crucial and strategic metal and that its price would be increasing. Moly is needed in stainless steel, specialty steels and refractory metals which are used in the manufacture of super alloys, electronic and medical applications, lighting and as catalyses for the manufacturing petroleum products. Molybdenum is also a key percentage of steel used in Oil/Gas pipelines and drill stem tubing on drill rigs.
Larry Reaugh’s knowledge and intuition are paying off. When he acquired the Ruby Creek property and three others in Nevada, moly was selling for a few dollars per lb. Now it is selling for more than $32 per lb. and Adanac Moly Corp. will have the first major new moly property to be ready for production in 2007.
I asked Larry what experiences led him to become a minefinder. He said he grew up in western rural Canada (Highland Valley, BC) and he had a choice of becoming a cowboy or working in a mine. He decided to work in a mine. He had broad and diversified mining experience working nine years for Bethlehem Copper. He sorted ore, surveyed, worked on safety projects, did geochemical plotting, exploration studies, calculated resources and helped design and build tunnels. On weekends he did prospecting for himself.. When he was twenty-seven years old, he started his own drilling company and six years later formed ‘Reagold Corp’. He has made several substantial discoveries that led to producing mines. The Samatosum, Adams Lake, BC silver deposit and mine, the Bronco Verstone gold mine in Arizona and the Belle Vista, Costa Rica I asked Larry how he finds mines. He replied, “Use the best tools, look for good deals, study all aspects and evaluates alternatives. He continued, “I use geologists’ advice, but make my own decisions.” Larry Reaugh is a bulldog pursuing projects. He said “The key is to raise money and put it back into the ground drilling. Then raise more money and drill, continually spending money on the properties.” He said “This is the best period for mining since the 50s, 60s, and 70s. China, India and South America are putting a tremendous strain on resources. Their middle classes are growing, creating new wealth, which is leading to a steady drive to improve.” Larry has raised more than one hundred ten million dollars for the exploration and development of mining properties.

The following crucial news release: Monday, April 11th 2005 - Vancouver, British Columbia, sums up the status of the Ruby Creek Mine.

“Adanac Moly Corp. (AUA:TSX.V) has released the results of an independent Mineral Resource estimate for the Ruby Creek Molybdenum Deposit located 22 km northeast of Atlin, BC. The estimate was prepared by independent geological and mining consultants, AMEC Americas, Ltd. (AMEC).
AMEC estimates that the Ruby Creek deposit contains:
A Measured and Indicated Resource of 199.3 million tonnes grading 0.062 per cent molybdenum, with an additional Inferred Resource of 20.7 million tonnes grading 0.057 per cent molybdenum above a cut-off grade of 0.04 per cent molybdenum.
AMEC estimated the Ruby Creek Resource by assigning grades to a three dimensional block model with ordinary kriging. The data set used for the estimate consisted of composited assays obtained from diamond drill holes and a small amount of underground samples collected during a previous bulk sampling program.
The estimate has been classified into confidence categories based on the criteria outlined in the CIM Standards on Mineral Resources and Reserves, as required by the regulations in NI43-101.
The Resource estimate was completed under the direction of Steve Blower, P.Geol of AMEC, an independent qualified person as defined by NI43-101.
A technical report detailing the Resource estimate will be filed on www.sedar.com within 30 days. A summary of the Mineral Resource at the Ruby Creek deposit at various cut-off grades is tabulated below:”

Notes: