News

June 14, 2007

Adanac Hopes To Be Producing Molybdenum Early In 2009

In the middle of April Canadian listed Adanac Molybdenum Corporation raised a gross C$40.6 million to fund the detailed engineering and procurement contract for the Ruby Creek Molybdenum project . This is its principal asset and it is situated about 50 kms northeast of Atlin in British Columbia. With that money under its belt it was able to give long lead time orders for a ball mill and a primary gyratory crusher for the plant planned for Ruby Creek and the executive chairman Larry Reaugh has recently been in London to bring investors up to speed with progress. As has been reported by many companies at the development stage, equipment is scarce and the earlier it can be ordered the better.

Ruby Creek & Surprise Lake from the air

Ruby Creek was first drilled by Kerr Addison back in the 1960s and it was taken  right through to feasibility, but the price of molybdenum was only US$1.80 at the time  so it then trod water. Placer Dome then took a 70 per cent interest in 1977 and it is interesting to note that the price of molybdenum spiked at a price of US$30/lb in 1980. This should have ensured that  the deposit was mined, but there were questions about the presence of uranium in the ore  and Placer lost...