Adanac receives cost estimates for Ruby Creek

Vancouver An engineering firm has projected capital costs of $316.7 million, including a 20% contingency, for Adanac Moly’s (AUA-V) Ruby Creek molybdenum project near Atlin, in northwestern B.C.

A feasibility study is expected by year-end for a proposed 20,000-tonne-per-day mining and milling operation to produce 12 million lbs. of moly annually over the first five years of a 20-year mine plan.

Adanac has a report in hand from Wardrop Engineering that includes processing recommendations from MinnovEx Technologies. The report predicts that a final concentrate grade of 54% moly and 90% recovery can be achieved for a mill-feed grade of 0.087% moly through a process facility using two-stage regrinding and four-stage cleaning.

The company says more detailed engineering should bring about "significant reductions" in capital costs, and in milling and infrastructure costs, presently estimated at $7.99 per tonne. For example, the initial design was based on power from diesel-generators, but the company is researching the possibility of bringing in a power-line from a hydroelectric grid in the Yukon.

Adanac has authorized a firm to arrange an off-take agreement for the Ruby Creek project by year-end. Meanwhile, the company is carrying out a 5,000-metre drill program to upgrade existing resources, which at last report stood at 205 million tonnes grading 0.062% moly in the measured and indicated category.