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MOLYBDENUM STUDY: New feasibility numbers for Ruby Creek

BRITISH COLUMBIA ADANAC MOLYBDENUM of Vancouver has updated capital and operating costs for its proposed Ruby Cre...



BRITISH COLUMBIA ADANAC MOLYBDENUM of Vancouver has updated capital and operating costs for its proposed Ruby Creek mine 24 km northeast of Atlin. The bankable feasibility study proposes a 23,000-t/d project carrying a $647-million capital cost and life-of-mine average operating costs of US$9.75/lb of molybdenum produced. These estimates are 8% and 32% more, respectively, than an earlier study completed in December 2007.

Adanac also studied the alternative of building a 30,000-t/d operation. That option carries the same capital cost, but total site operating costs would be lower, US$7.63/lb of moly produced. The company based its numbers on a long-term molybdenum price of US$16.50/lb. Molybdenum is currently selling for between US$33.50 and US$34.00 per pound.

Construction at the Ruby Creek mine is expected to begin in February 2009 with production to start Q4 2010. Adanac has pre-ordered $149-million-worth of long lead time equipment. The measured and indicated resource has also been updated (at a 0.04% Mo cutoff grade) to 212.9 million tonnes grading 0.064% Mo plus proven and probable reserves of 157.7 million tonnes grading 0.058% Mo.

The company’s website is www.AdanacMoly.com.


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