BRITISH COLUMBIA – ADANAC MOLYBDENUM CORP. of Vancouver has confirmed that its Ruby Creek project 22 km northeast of Atlin has the numbers to make a good mine. Proven and probable reserves are 157.7 million tonnes grading 0.058% Mo, plus there are measured and indicated resources of 212.9 million tonnes grading 0.063% Mo.
The numbers will support an open pit operation for 21 years at a milling rate of 23,000 t/d. Creating a mine/mill of that size would take a preproduction commitment of $640.0 million. Average operating costs would be US$7.60/lb of molybdenum during the first five years of full production, and US$7.99/lb for the remaining years. Current moly prices are between US$25 and US$26/lb, but Adanac is predicting prices as high as US$32/lb next year.
Adanac announced its intention to develop the project in September 2007 and is in possession of the necessary environmental certificate. Prior to that, the company began detailed engineering and procurement of long-lead time equipment. It intends to put the Ruby Creek deposit into production as quickly as possible, perhaps in 2009.
The history of the Ruby Creek property is posted at www.AdanacMoly.com.