Adanac Molybdenum gets First Nations boost at Ruby Creek

Vancouver – Adanac Molybdenum (AUA-V, AUAYF-O,) is getting a boost from the British Columbia government and the Tlingit River First Nation as it moves to develop its Ruby Creek project in northwestern, B.C.

B.C. Mining Minister Bill Bennett said the province and the First Nation (TRT) have embarked on a “new relationship” initiative by taking a major step towards a new 830 hectare mine development near the town of Atlin.

With a pre-production capital cost forecast at $434 million, Adanac has applied for a provincial environmental assessment certificate for a 20,000 tonne-per-day molybdenum mine that would be located in the central portion of the TRT territory.

A formal review of the project is already underway and is expected to finish in 2007.

Bennett said a letter of understanding has been signed between the province and TRT that will see important First Nations issues being addressed at the same time as a critical environment process proceeds.

“This is a great example of how B.C. is working closely with First Nations on mineral exploration and development to ensure their concerns are met while creating positive relationships between government industries and communities,” Bennett said.

Located about 24 kilometres northeast of Atlin, the Ruby Creek property contains 144 million tonnes of proven and probable reserves, grading 0.059% molybdenum, according to Adanac’s website.

By developing the mine, Adanac is taking advantage of the fact that molybdenum prices are 14 times higher than they were when a previous owner looked at the feasibility of developing a mine back in 1970.

Sandra Jack, a spokeswoman for the TRT said: “the First Nation is very pleased with the tangible results deriving from the leadership of B.C. Premier Gordon Campbell and the New Relationship.”

“The accommodation discussion between B.C. and the TRT, combined with the collaborative relationship of a responsible proponent, are an example of how respecting First Nations can lead to sustainable and profitable economic activity,” Ms. Jack said.