BRITISH COLUMBIA - The board of Vancouver's ADANAC MOLYBDENUM has given the official go-ahead for construction of the Ruby Creek molybdenum project near Atlin. The Environmental Assessment Certificate was awarded on Sept. 10, 2007. Approval from the federal Department of Fisheries and Oceans is expected before the end of October. Other applications are under review and as soon as they are received, work will begin on individual parts of the project.
Adanac has completed a review of the estimated capital cost of the project, based on 30% of detailed engineering being complete. Rising capital equipment costs and an increase in the planned average processing rate from 900 to 1,100 t/h have increased the construction cost to $640 million from a previous figure of $460 million. The amended total includes a contingency amount of $57 million plus $20 million for construction risk. Approximately $40 million has been spent on the project to date.
The open pit has been re-engineered to include additional resources. The annual processing rate increases to 7.6 million tonnes per year based on milling approximately 157 million tonnes grading 0.058% molybdenum. The mine life is estimated to exceed 20 years.
A diamond drilling exploration program is being planned to extend and follow up results for the work currently underway. This program is expected to run through the first quarter of 2008. Results to date have been very encouraging, and future activities aim to expand and delineate new resources for subsequent economic evaluation.
Adanac (www.AdanacMoly.com) is currently engaged in advanced discussions with selected financial institutions and potential strategic investors to complete the financing for the project. Full funding is expected to be in place early in the first quarter of 2008.
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