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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