June 25, 2008

Ruby Creek mine wins key construction permit

PRINCE GEORGE, B.C.

A proposed multi-million dollar metal mine at Ruby Creek near Atlin in northeast British Columbia has received a key permit for its construction.

The Adanac Moly Corp. has received a Mines Act permit, which puts the company one step closer to developing a $750-million molybdenum mine.

If the mine goes ahead, it could be the first major metal mine to be built in northern B.C. in the past decade.

The Mines Act permit — which follows provincial environmental approval — will allow for site preparation, earthworks, steel erection, mill construction and assembly, and open pit development.

The mine also needs federal approval.

“We are extremely proud of our team in achieving this important milestone for the company. We look forward to working with the Atlin community and the (Taku River Tlingit First Nation) in advancing the Ruby Creek project forward to production,” said Adanac Moly CEO David Stone.

The mine is expected to create 550 jobs during construction and another 250 permanent jobs while it operates.

The project includes an open pit mine that would operate at 20,000 tonnes per day. Construction is expected to take about two years and, once in production, the mine is expected to operate for more than 20 years.

B.C. mining minister Kevin Krueger said he was thrilled the project was going ahead, noting there has been a wait for another big mine to be constructed in the province. While mineral exploration spending has jumped significantly in north and central B.C., no new mines have been started. Northgate Minerals has plans to build a $200-million second open pit at its Kemess operations, but a joint Canadian and B.C. review panel rejected the project in the face of opposition from First Nations.

The Galore Creek project in northwest B.C. — which had provincial and federal approval and support from First Nations — was shelved when costs more than doubled to $5 billion. The partners in the project, NovaGold and Teck Cominco, are re-examining the mine plan to reduce costs.

Canadian Press

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