ADANAC MOLY CORP
Ruby Creek Molybdenum Project EAC Application Public Consultation Report
APPENDIX XIII Newsletters and Brochures Mailed in Atlin
Klohn Crippen Berger
Responsive Publication Oct 2005.qxp
10/25/2005
4:48 PM
Page 1
October 2005
RUBY CREEK PROJECT UPDATE
Op
House en
Ruby Creek Liaison Committee (RCLC)
In an effort to better understand the community of Atlin and its potential interests and concerns regarding the Ruby Creek Molybdenum Project, Adanac created the Ruby Creek Liaison Committee (RCLC). This committee is made up of local citizens who are dedicated to a prosperous community and recognize its unique qualities. The committee acts as a balanced forum of open dis cussion to provide Adanac with any suggestions, issues, and information that can help us deliver a project that will benefit Atlin as a whole. These indi viduals act on a voluntary basis and their involvement does not indicate endorsement of the project. The item currently under discussion is to review potential locations for the permanent employee housing unit camp. We encourage you to contact a committee member should you have a suggestion, concern, or comment that you would like to bring to Adanac s attention through discussion at a future meeting. The next meeting is scheduled for October 27, 2005.
Adanac Moly Corporation along with its employees, agents, and representative s would like to take this opportunity to thank the community of Atlin for your overwhelming support of our open house of August 31, 2005. We appreciate your allowing us to get to know you better the members of this wonderful and unique community. In total, 124 people signed in at the event, with over 100 individuals completing our questionnaire. Here are a few examples of what we have learned from the respondents regarding the Ruby Creek Molybdenum Project: 91% are either somewhat or very familiar with the project 92% support the project, provided it concurs with all guidelines of the BC Environmental Assessment Act 59% are interested in possible economic oppor tunities 98% feel creating approximately 250 jobs for northern communities is either somewhat or very important 90% feel Adanac s community consultation and mailouts are either somewhat or very effective in reflecting the concerns of residents 64% are concerned about the environment and/or social effects of the project The Adanac team reviews all comments received by stakeholders. We believe that a project can only be successful if it can benefit everyone. Should you wish to provide us with additional information, please contact us at info@adanacmoly.com See you at the next gathering!
RCLC members clockwise from left: Chris Sunderland (Klohn Crippen) Sheldon Sands Penny Foster Wallis Janis Harper Nan Love Donna Patrick George Holman John Reed Jim Wallis Absent from photo: Frank Halliday (Adanac) Wayne Merry Daniyel McNeil
Responsive Publication Oct 2005.qxp
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October 2005
RUBY CREEK PROJECT UPDATE
Project Update
Adanac Moly Corporation recently completed its preliminary feasibility. This study gives us an early economic snapshot that will be further evaluated in the final feasibility study, which is scheduled for completion in January 2006. Here are a few facts regarding the proposed Ruby Creek Project: Mine life is 22 years Milling rate is 20,000 tonnes per day There will be 150.8 million tonnes milled Molybdenum in concentrate is 80 million kgs (176.4 million lbs) Molybdenum recovery rate is 92% Pre production capital is C$414 million Average operating cost is C$10.93/tonne milled, to be reviewed and minimized where possible Adanac is continuing its consultation with both the Taku River Tlingit First Nation and other Atlin area residents. Our goal is to create a project that promotes growth and opportunity for everyone. These consultations are ongoing and information gathered to date, along with the completion of various baseline environmental studies, has allowed us to target November 2005 for our application sub mission to the British Columbia Environmental Assessment Office. This application initiates the reg ulatory process for which the approvals for mine construction are eventually granted. All comments regarding the Ruby Creek Project will be reviewed during this regulatory phase. Copies of literature related to works completed to date may be reviewed at both the local government agent and the Adanac field offices. Should anyone wish to discuss or provide further insight regarding our project, we urge people to contact a Ruby Creek Liaison Committee member or email us directly at fhalliday@adanacmoly.com. For further information about the project including completed studies, investor relations, and announcements to date, please visit our website at www.adanacmoly.com.
Field Office Opening
Starting in October, Adanac Moly Corporation will be opening its field office to the general public. This office is located at the corner of Discovery Avenue and First Street, across from the local RCMP office. Office hours will be posted in the near future. Please feel free to come by to say hello and have a cup of coffee. Our proposed mine site model will be on display, and personnel will be around to answer any questions you may have regarding the Ruby Creek Project. All project related literature will also be on hand for public viewing, including environmental and financial studies.
Adanac Moly Corp 2A-15782 Marine Drive White Rock BC V4B 1E6 Phone: (604) 531-9639 Facsimile: (604) 531-9634 info@adanacmoly.com www.adanacmoly.com
Adanac Moly Corp 201-1538 Foster Street White Rock BC V4B 3X8 Phone: (604) 531-2959 Facsimile: (604) 531-2949 info@adanacmoly.com www.adanacmoly.com
Responsive Publication Dec 2005.qxp
12/16/2005
10:57 AM
Page 1
December 2005
RUBY CREEK PROJECT UPDATE
President’s Message
Here we are, already nearing the end of 2005 and another busy year for Adanac Moly Corp. Sometimes I ask myself, How did the months pass by so quickly? A huge effort was put forward this year by everyone 2005 has been a very exhilarating and fast paced year for Adanac. To start the year with a bang, we followed up on our aggressive 2004 exploration program by hiring a project development team in the spring. The goal of the team is to undertake the necessary steps to move the Ruby Creek project from exploration and resource measurement to reality. Here are just a few milestones from 2005: Released the National Instrument 43 101 technical report outlining the mineral resource estimate (Spring 2005); Initiated communication with both the Taku River Tlingit First Nation and Atlin area residents (Spring 2005 ongoing); Continued exploratory drilling and core evaluation (Summer 2005); Thank you all for your help this year. I wish everybody the best for the holiday season and a Happy New Year! I and the entire Adanac team believe that this project will be successful only if it can benefit all stakeholders. We are committed to working hard with everyone to see this project come to fruition and provide opportunity for all Atlinites. associated with the project, and Adanac will continue to work feverishly in 2006. We are finalizing our Terms of Reference and will submit our environmental application documents by mid January 2006. We expect to have our first look at the Bankable Feasibility Study by the end of this month. Released the Preliminary Feasibility Study outlining introductory project specifics, including potential productivity and costs (Summer 2005); and Conducted an open house in Atlin to summarize work completed to date and help build relationships with Atlin area residents (Summer 2005).
Larry Reaugh President & CEO, Adanac Moly Corp.
Application Update
On November 8, 2005 the working group committee for the Ruby Creek project met in Vancouver to discuss the Terms of Reference. This document establishes all details that will be reviewed during the application process. The working group consists of members from the company, federal and provincial regulatory agencies, and Taku River Tlingit First Nation. From this meeting, Adanac staff decided that more time is needed to allow further comments from the working group committee and other stakeholders. This has delayed our proposed submission date from November to January; however, we feel that taking these steps up front will ensure that the interests of all parties are recognized and allow for a more streamlined review period. These factors should help keep the project on schedule. We are pleased with the efforts made by all parties in helping us identify areas of concern and to ultimately create a better project for Adanac, Atlin Community, and citizens of British Columbia.
Responsive Publication Dec 2005.qxp
12/16/2005
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December 2005
RUBY CREEK PROJECT UPDATE
Feasibility Update
The Preliminary Feasibility study published in August was a useful tool, allowing Adanac to forecast an early economic snapshot for the proposed Ruby Creek project. These results revealed enough positive information that we have continued to the full bankable feasibility stage. This phase entails a higher level of engineering and project detail with the intent of determining the financial costs and gains over the life of the project. These may vary from supply, operational and capital costs to potential gross earnings under various market scenarios. The final product is a Bankable Feasibility document, which describes the company business plan. This will help Adanac in pursuing capital financing opportunities. The study is a collaborative effort of Klohn Crippen, Wardrop Engineering, MinnovEX Technologies, Golder Associates, and Adanac Moly Corp. 2005 marked several special milestones for the Ruby Creek project. The common factor has been hard work, and we have been privileged to work with such energetic groups such as the community of Atlin, Taku River Tlingit First Nation, Ruby Creek Liaison Committee, many consulting companies, and both federal and provincial regulatory agencies. Several individuals helped us in the field over the summer months often seven days a week. We would like to thank David Moss, Shannon Hall, Jackie Carlick, Nikki Lefebvre, Sean O Shea, T.J. Esquiro, and George Kirby for all of their efforts. We are excited at the opportunity to continue working together with such a strong, resilient community. The success of this venture has significant benefits for everyone. The company and its employees take this opportunity to thank everybody for their efforts, comments, and active participation in the project. Best wishes for the Holiday Season and Happy New Year! The year has almost come to an end and what a year it has been for Adanac! Within the past 12 months we have taken the project from the early stages of opportunity to latter stages of having completed a bankable feasibility document.
2005
The Ye ar in
Review
Adanac Moly Corp 2A-15782 Marine Drive White Rock BC V4B 1E6
Adanac Moly Corp 201-1538 Foster Street White Rock BC V4B 3X8
Phone: (604) 531-9639 Facsimile: (604) 531-9634 info@adanacmoly.com www.adanacmoly.com
Phone: (604) 531-2959 Facsimile: (604) 531-2949 info@adanacmoly.com www.adanacmoly.com
Mailout May 2006.qxp
5/9/2006
10:17 AM
Page 1
May 2006
RUBY CREEK PROJECT UPDATE
Another winter is over and a long-awaited summer is approaching. The team at Adanac Moly Corp has been working feverishly over the past few months to enhance the development of the Ruby Creek Molybdenum Project. We have another busy summer planned for field exploration and, potentially, early site development. We take this opportunity to thank the many people in the community who worked hard over the winter and are committed to working together “for the common good.” In particular, we acknowledge the Ruby Creek Liaison Committee (RCLC), various contractors, employees and the Taku River Tlingit First Nation (TRTFN) team, including their former spokesperson, John Ward. We anticipate continuing our strong relationship with the TRTFN through their new spokesperson, Sandra Jack. We hope this summer brings prosperity for all Atlinites and look forward to seeing everybody in the community in the months ahead.
Adanac Open House
Adanac will be conducting a second open house at Atlin late this spring. This will be another chance for you to provide us with opinions and suggestions for improving our project. This event will be held in conjunction with the Environmental Assessment Office (EAO) and will include time for questions. Further details regarding the exact time and location of the open house will be provided through the RCLC and on local posters.
Submitted: Application for Environmental Assessment Certificate
The application for the Environmental Assessment Certificate has been submitted to the EAO for screening. Once screening is complete and review comments have been incorporated, the application will proceed through the regulatory process. The application covers all aspects of the project and includes thorough environmental reviews, engineering studies, socio-economic research, consultation records and mitigation measures. We encourage the community to review the application on the EAO Web site (www.eao.gov.bc.ca) under List of Projects in the EA. In addition to the details provided therein, Adanac will keep its Atlin office open all summer. Feel free to drop by to talk to our staff about the project. Alternatively, you may forward comments to info@adanacmoly.com. The project is designed to produce a long-term economic opportunity for Atlin and area communities, Taku River Tlingit First Nation people, and the province of British Columbia. Adanac’s goal is to design and operate a safe, environmentally friendly mine while considering the needs and concerns of local residents. We wish to ensure long-term, sustainable success for the project and the community.
Mailout May 2006.qxp
5/9/2006
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May 2006
RUBY CREEK PROJECT UPDATE
Completed: Feasibility Report
Adanac and its consulting agencies have completed a bankable feasibility report. This document scrutinized and evaluated the information presented in the preliminary feasibility report, at a higher level of detail. Some of the primary studies included methods for lowering projected operation costs and enhancing molybdenum recovery. Positive results were achieved on almost every front and the resulting document confirms the project’s economic suitability. Table: Bankable Feasibility Report Highlights
Preliminary Feasibility 2005 Production Cost ($US/lb) Precision of Estimate Grade MoS2 Capital Expenditure* $6.81 +/- 25% 0.062% $408M Feasibility 2006 $5.87 +/- 15% 0.063% $399M
* Does not include startup or working capital expenditures
With these favourable economic results Adanac will proceed with a detailed engineering study, including an investigation for the use of High Pressure Grinding Rolls. This may result in a lower capital expenditure and higher level of molybdenum recovery.
Planned Summer Activities
Summer 2006 will be busy for the Ruby Creek Molybdenum Project team. Adanac is planning another drilling program, which aims to confirm an increase in expected molybdenum grade for the ore body, as well as the possibility of extending the ore body beyond presently defined areas. This drilling program will include an additional 8,000 to 10,000 metres and should be completed by late summer. Results may allow us to show further economic benefit for the project and lead to additional opportunities for the Atlin community. Fish habitat improvements will be initiated this spring with groundwater studies near Otter, Boulder and Ruby Creeks. This research aims to determine the suitability of proposed spawning habitat channels and forms part of our commitment to enhancing the local environment. The channels could be created this summer, pending regulatory approvals. The TRTFN and RCLC have played an integral role by providing us with information that has allowed us to better understand the local environment. Road upgrades and initial site preparation may occur in late summer, pending regulatory approval. This will allow more extensive mine and tailings impoundment construction in 2007, with possible production scheduled for 2008. The EAO, TRTFN, Atlin community, and other regulatory agencies have worked with Adanac in an exemplary manner and should be commended for their efforts to create a project that will benefit everybody. Without your help, we would not have made it this far; thank you for your assistance and guidance. We look forward to continuing our relationship as partners in the community.
Adanac Moly Corp 2A-15782 Marine Drive White Rock BC V4B 1E6
Phone: (604) 531-9639 Facsimile: (604) 531-9634 info@adanacmoly.com www.adanacmoly.com
September 2006
RUBY CREEK PROJECT UPDATE
S
e r Upd ate m um The activity level for the
Ruby Creek Molybdenum Project is steadily on the rise. Adanac Moly Corp and its representatives have been working on several facets of the program design:
Drilling Program The 2006 summer drilling program tested the theory of vertical molybdenum-bearing veins within the proposed open pit. It also explored a potential extension to the southwest of the deposit and acquired samples for metallurgical testing. Fieldwork is nearing completion (September) and though assays are pending, visual results are encouraging and an increase in grade may result. Environmental Baseline Studies Fieldwork this summer focused on water quality sampling, fish habitat suitability options and wildlife surveys. These areas continue to be evaluated in detail with valuable input from the Taku River Tlingit First Nation (TRTFN), with whom we are working cooperatively to create solutions for sustainable development. Operational studies will continue through the life of the project to promote the utmost regard for the environment. Head Office Our White Rock staff has been working hard to maintain the project’s pace and timeline. We have held informative sessions on topics ranging from the provincial and federal regulatory process to capital financing opportunities, with the goal of creating an efficient level of project development to allow for timely distribution of accurate information to stakeholders. We expect responses to our requests for proposals for detailed engineering in October; this is one of the final steps in project design and is the basis for facilities construction. High Pressure Grinding Rolls Based on tests and engineering performed by Wardrop Engineering Inc., Adanac will incorporate high pressure grinding rolls (HGPR) into the mineral processing plan. This equipment replaces the conventional semi-autogenous grinding (SAG) mill option, which results in power savings and an increase in process plant availability from 91% to 96%. This equates to an additional 400,000 tonnes milled annually. As a result, the overall production cost of the project’s first five years decreases from $5.79/lb Mo to $5.58/lb Mo.
September 2006
RUBY CREEK PROJECT UPDATE
EA Application Status
On August 4, 2006 the application for the Environmental Assessment Certificate was accepted for provincial review. Adanac Moly Corp, the TRTFN and the Environmental Assessment Office (EAO) worked collaboratively to ensure the submission of the best possible documentation for regulatory review. A copy of this application may be viewed at the local Government Agent office. The provincial review process may take up to 180 days and includes key steps ranging from public comment periods to thorough independent regulatory reviews. Such reviews are conducted through various ministries, including Ministry of Energy and Mines, Ministry of Environment, and Ministry of Forests. Recommendations are forwarded to the EAO, which makes a project recommendation to cabinet regarding Environmental Certification. The initial benchmark during the review is the completion of the public comment period, which occurs from September 5 to October 5, 2006. Adanac welcomes public input and has arranged an open house on September 14, 2006 at the Atlin Recreational Centre, which will run from 2:00 p.m. to 9:30 p.m. We encourage your attendance and comments regarding the project. Comments may also be forwarded to the EAO via their website, www.eao.gov.bc.ca. For more information, please review the attached “open for comment” document published in conjunction with the EAO.
g For ward k in oo L
Adanac is confident that the extra time we invested early on will clarify and simplify the environmental review process for the project. Our focus is now shifting to issues tracking and resolution. We could not have reached this stage without the exhaustive efforts and support of the Taku River Tlingit First Nation and the Atlin community. We wish to thank everyone who helped us envision the creation of economic opportunities in Atlin without compromising its environmental setting. We look forward to further developing our relationships with the goal of being a partner in the community.
Adanac Moly Corp 2A-15782 Marine Drive White Rock BC V4B 1E6
Phone: (604) 531-9639 Facsimile: (604) 531-9634 info@adanacmoly.com www.adanacmoly.com