Adanac Moly hires contractors for Ruby Creek study

2005-09-21 09:36 ET - News Release

Mr. Larry Reaugh reports

RUBY CREEK FINAL FEASIBILITY IS UNDERWAY (MOLY @$34.88 US/LB)

Adanac Moly Corp. has initiated final feasibility engineering for its Ruby Creek molybdenum project, located near Atlin in British Columbia. The successful completion of the preliminary feasibility study was previously reported in Stockwatch on Sept. 1, 2005.

Engineering is scheduled to be completed by Dec. 31, 2005, with submission of the final report in January, 2006. The work will focus on capital and operating cost reductions compatible with the production of a premium-grade molybdenite concentrate.

The feasibility is predicated on a year-round open-pit operation producing 20,000 tonnes of mill feed per day sustainable for more than 20 years. Total production of molybdenum in the first five full years is expected to be 27 million kilograms (59.5 million pounds) and for the 22-year period roughly 80 million kilograms (176.4 million pounds). The measured and indicated resource which is being used as the starting point for the feasibility study is 205.1 million tonnes grading 0.062 per cent Mo (at a 0.04 per cent Mo cut-off).

All aspects of this feasibility will be National Instrument 43-101 compliant.

Contracts for the work have been awarded to:

• Golder Associates Ltd. -- for mine design, rock-slope stability and updating the resource model to include the diamond drilling just completed. Golder is a world renowned company recognized as a leader in resource and reserve estimation/evaluation, and for its mining and geotechnical expertise;
• Wardrop Engineering Inc. -- for detailed development of the mill process and infrastructure including the diesel-electric power plant to be used in the initial years of operation, and to evaluate specific alternative options for process unit operations. Wardrop is a full-service engineering company with 50 years of successful history serving the Canadian mining industry;
• Minnovex Technologies Inc. -- for completion of comminution and flotation testwork to optimize these processes for the Ruby Creek resource. The testwork results are essential components for detailed process design, and the geometallurgical parameters will also be incorporated into Golder's resource model. Minnovex is a recognized leader in comminution and flotation testwork for process plant design, and recently became part of the Lakefield SGS group; and
• Klohn Crippen Consultants Ltd. -- for continuation of site geotechnical engineering services for site water management, tailings storage and waste rock storage. Klohn Crippen is a recognized leader in the design of tailings dams.

The total value of these contracts is approximately $2-million.

Under an existing contract, Klohn Crippen has preformed environmental baseline studies and is now preparing the environmental impact assessment documents for submission to the B.C. environmental assessment office in early October.

Adanac Moly is pleased to have assembled this prestigious team of contractors to perform the feasibility engineering for the Ruby Creek project.

The feasibility engineering will be overseen by director, Mike MacLeod, PEng, vice-president of project development, and John Fisher, CEng, PEng, consulting metallurgical engineer involved in ore processing and mill layout.

The technical information contained in this news release is compiled by Mr. Fisher, CEng, PEng, an independent qualified person as defined by National Instrument 43-101. Mr. Fisher visited the Ruby Creek property on June 21, 2005.

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