TSCI Street Pulse - February 24, 2010

eResearch Stock of the Week: Adex Mining, Inc. (TSXV: ADE)

Adex Mining Inc. is a mineral exploration company focused on its 100%-owned Mount Pleasant Mine property, a tungsten-molybdenum and tin-indium-zinc development project in New Brunswick, Canada.
The two main zones at the Mount Pleasant property are:

(1) The North Zone, bearing tin-indium-zinc; and
(2) The Fire Tower Zone, bearing tungsten and molybdenum.

The North Zone contains the world’s largest indium resource and North America’s largest tin resource.
There is lots of action at the North Zone: a recently-released Preliminary Assessment; a favourable NI 43-101-compliant Technical Report; the commencement of two pilot programs: one for the production of tin and indium-zinc concentrate, and the other for the production of indium sponge and zinc metal concentrate; a program to complete the upgrade of resource estimates from Inferred to Indicated; and the initiation of a feasibility study. With plenty of news flow, Adex should attract increasing investor attention as the year progresses.

Adex filed, on January 26, 2010, a NI 43-101-compliant Preliminary Assessment (“PA”) involving a technical and economic assessment of the production of tin, indium, and zinc products on the North Zone.
The PA results suggest two viable production options for the North Zone:

(1) the production of tin concentrate, indium sponge, and zinc metal; and
(2) the production of tin concentrate and zinc-indium concentrate.

Our calculations of an intrinsic value under various scenarios represent the basis for our $0.35 per share 12-month Target Price. But, should any of the many initiatives planned by the Company exceed expectations, the shares could easily eclipse our price objective.

We recommend the shares of Adex Mining Inc. as a Speculative Buy for risk-tolerant investors.

Equity Research Available at: Adex Mining

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Bob Weir, B. Comm, B.Sc., CFA. - eResearch

Mr. Weir has 43 years of investment research and analytical experience in both the equity and fixed-income sectors, and in the commercial real estate industry. He was at Dominion Bond Rating Service (DBRS) from 1994 to 2001, latterly as Executive Vice-President responsible for supervising the firm’s 34 analysts and conducting the day-to-day management affairs of the company. He joined eResearch in 2004 and has been its President, CEO, and Managing Director, Research Services since May 2005.