July 7, 2008

Natural Resource Extraction

Open-pit Ruby Creek mine gets approval from British Columbia government

Richard Gilbert

staff writer

The development of a $750-million mine at Ruby Creek in British Columbia’s northwestern corner is on track.

Vancouver-based Adanac Molybdenum Corporation has hired a consulting engineer and has received a permit the exploration and development of mines to produce molybdenum and other metals.

The company’s flagship property is the Ruby Creek molybdenum project, which is a low-grade bulk type of deposit, located at the headwaters of Ruby Creek near Atlin B.C.

The company announced that it retained a consulting engineer to provide technical, commercial and business advice. Earlier, the company announced the receipt of a provincial Mines Act permit for an open pit mine that would operate at 20,000 tonnes per day.

“This project is another example of the vibrant mining sector at work in British Columbia,” said Kevin Krueger, minister of state for mining.

“Ruby Creek mine will create approximately 550 jobs during the construction phase and approximately 250 direct jobs during the operations phase, greatly benefiting the local economy.”

The Mines Act permit is the most crucial approval issued by the B.C. government.

Along with other facets of development, it will allow for site preparation, earthworks, steel erection, mill construction and assembly, and open pit development.

Construction is expected to take about two years and, once in production, the mine is expected to operate for more than 20 years.

The Mines Act permit process was a subsequent step to the environmental assessment process, which focused on the potential impacts of the Ruby Creek project.

The province granted the project an environmental assessment certificate in 2007, following a review by B.C.’s Environmental Assessment Office.

The Taku River Tlingit First Nation participated in the technical working group and was involved in all aspects of the review.

Adanac embarked on a $750-million debt and equity financing initiative for the mine last October and expects to complete its financing this summer.

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