From: Whitehorse Yukon, Star News:
http://www.whitehorsestar.com/auth.php?r=49257
In Hot Pursuit Of Moly:

By Chuck Tobin

ATLIN, B.C. – It's flat-out at Adanac Moly's Ruby Creek project north of Atlin.
A 21-year supply of molybdenum sits on the side of a mountain far above tree line, 11 kilometres along an old exploration road that snakes its way up from the company's temporary base camp on the south shore of Surprise Lake.
The camp is large enough for the 100 or so workers on site now.
But if Adanac has its way – and it fully expects it will – project intensity will soon grab another gear, as it moves into the two-year construction phase for a mill and base camp at the foot of the ore body.
The company plans to truck its first load of concentrate off the mountain in mid-2009.
Whether the moly will ship out of Skagway depends whether it's going overseas, says Rick Alexander, the company's vice-president of project development, adding negotiations to finalize a buyer are ongoing.
Moly is a hot commodity currently, and Adanac believes it's positioned better than most potential producers to hit the market first, while it's still sizzling, says company literature.
And things are moving, but not without an earnest commitment to maximize local economic opportunities and environmental protection measures, Alexander insists.
"We have at least 185 commitments that were made, that we have to fulfill," Alexander says.
"And those all came after intense social working groups and environmental working groups.
"I think we have set a fairly high standard for socio-economic and environmental sustainability."
Five years ago, the additive for high-performance steel was selling at just under $2 a pound. It spiked to $40 a pound by mid-2005, and has been floating recently between $30 and $35. It was selling for $33 a pound Thursday.
Alexander isn't much into the geology aspect of the Adanac Moly deposit. It's not his job.
His is to direct the construction phase, focused first on the next three months of widening the mountain road and bringing it up to industry standards, to allow the movement of material and equipment to the main site.
There'll be 40,000 cubic metres of concrete poured – 5,700 trucks' worth – before the job is done, Alexander explains during a slow drive up to the main site Wednesday, taking time to describe the general lay of the land.
He points to the site for the mill, the tailings area and the campsite for a workforce of 300 full-time positions, 175 of which will be in the camp at any given time.
Time is pressing. Adanac is expected to receive its mining permit in the near future, having wrapped up the environmental screening and permitting process in September.
The company has also announced it's expecting to wrap up the $600 million in financing it needs to bring the deposit into production. It's already ordered $100 million worth of mill and other specialized equipment required for the operation. In full swing, the Ruby Creek mine will be crushing and milling 20,000 tonnes per day, with a net production of 40 tonnes of concentrate.
Alexander, a professional engineer who specializes in getting mines on their feet, in countries around the world, says the push for the road has been flat-out since the company received its special use permit a couple of weeks ago.
Adanac, he explains, began mobilizing in August.
There were 50 staff in camp waiting more than a week for the road permit to arrive, he recalls.
It wasn't a mad scramble to the equipment once the paper work came by fax the evening of Nov. 5.
But within two hours the next morning, all the iron was moving. Construction crews are now working 12-hour shifts, seven days a week.
A battery of environmental workers have arrived to do the required field work, and including wildlife surveys and research into areas prone to avalanches.
Safety, he emphasizes, is paramount.
"We have environmental monitoring," says Alexander, with a twist of humour.
"We have avalanche monitoring, wildlife monitoring, safety monitoring. We have a lot of people monitoring this job."
As the pickup truck moves up or down the road, Alexander announces his position over the radio at every kilometre post. Before the four-by-four reaches each piece of equipment, he radios the truck's intention to pass. The driver waits for the operator to acknowledge, and pauses.
Adanac prefers the use of convoys around the scheduled lunch and coffee breaks, to minimize disruption of the bulldozers and excavators.
Alexander is pleased with what he sees. He's amply confident the crew will meet the three-month target to finish the $4-million upgrade, which includes a $400,000-bridge across Boulder Creek.
There's a good vibe about, in camp, and in the community of Atlin, he says.
Alexander says Adanac Moly continues to emphasize the importance of maximizing the involvement of Atlinites, the Taku River Tlingit First Nation, and companies from the greater region.
Rock trucks from Ruby Gold, a local placer mining company, are working alongside equipment provided by Ketza Construction and Golden Hill Ventures of Whitehorse – 20 or so pieces of iron in all.
First nation members are working in all aspects of the project; running the equipment, logging the right-of-way, managing the kitchen.
He figures 40 of the 100 employed people by the company right now are either local, or from the greater region.
Applications for work reveal a growing and noticeable interest from former residents of the area who've moved away to find jobs in Alberta's oil sands or the N.W.T.'s diamond mines.
Alexander, however, has emphasized locals shouldn't have their sites on financing a piece of equipment and becoming the area's next major contractor, but should concentrate instead on the areas where opportunities do and will exist.
Ledcor, a major construction company, has been retained to run the open-pit mining project because of its experience and ability to recruit the workforce needed, he says.
On the other hand, the company has facilitated the formation of a joint-venture between the Taku River Tlingits and Alberta's PTI Group, a large firm which provides camp service to the oil sands.
Five of the current camp staff, he points out, are members of the Atlin first nation.
Alexander says it's by no means a stretch, for instance, to see the first nation in full control of the camp some time down the road.
Ledcor has already sent two young Taku Tlingit adults to its Tumbler Ridge open-pit project in B.C. to train on the large rock trucks that will be working Adanac's Ruby Creek project, he points out.
"This is the period where you have the opportunity to train people."
Construction of the mill and main camp is scheduled to begin early next, along with stripping of the overburden to get at the molybdenum.
At peak construction, Adanac expects there'll be 600 in camp at any given time next October or November.
Once in operation, it'll drop to the full-time workforce of 300.
Alexander estimates more than 50 per cent of the full-time employees will be from the general regional area, and 75 of those from the local Atlin area.
"Even before we start mining, we're seeing families moving into town," he says. "So I think we have a high probably of exceeding those numbers, but that's estimating right now."
Both Adanac and Ledcor employees will be required to pass the standard pre-employment drug test, he acknowledges.
There'll also be some travel restrictions imposed on employees during construction and operation.
He says those driving to Atlin from Whitehorse or Watson Lake, for instance, will be required to park their vehicle at a company compound in town and catch a bus to the mine site.
There will be daily bus transportation and allowance for those Atlinites who want to work at the mine but sleep at home.

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