Stuhini Exploration Weighing Up Potential of Ruby Creek Molybdenum Project

Stuhini Exploration is exploring and developing base and precious metal projects in Western Canada, where it controls over 809 square kilometers of potential mineral tenures. Stuhini has estimated the potential of the Ruby Creek Molybdenum Project in British Columbia following a resource estimate.

The Canadian company's focus is on advancing its flagship Ruby Creek project in British Columbia, the largest active mining camp in Canada, located approximately 15 kilometers east of Atlin. Within this 286 square kilometer property is the Ruby Creek molybdenum deposit.

(Credit: Stuhini Exploration)

Stuhini has entered into an agreement with Global Drilling Solutions to acquire 100 percent of the project, which Stuhini can exercise by paying a total of 7.3 million shares of common stock and $1.06 million in stock and cash over four years," said Dave O'Brien, president, and CEO of Stuhini Exploration. said, "The Ruby Creek project has benefited greatly from the existing infrastructure. The southwest edge of the property is accessible by 14 kilometers of road from Atlin."

Mineralization at Ruby Creek Molybdenum Project consists primarily of gold, silver and molybdenum. Molybdenum deposits are located near the top of the property, while most gold targets occur near seven significant mudflat creeks within the property. Silver ore covers four highly prospective targets.

O'Brien said, "The mine's construction was derailed by the financial crisis of 2008, which caused molybdenum prices to plummet from a low of $30 per pound in 2007 to about $8 per pound in mid-2009."

"Over the past 18 months, molybdenum has seen a dramatic rebound in price, nearly doubling from about $10 per pound in July 2020 to just under $20 per pound now," O'Brien said, "In response to the price increase, we decided to re-evaluate the Ruby Creek Molybdenum Project's economics."

(Credit: Stuhini Exploration)

First, the company released an updated mineral resource estimate for the porphyry deposit in March. It has a current resource of 369.4 million tonnes grading 0.053% molybdenum and containing 433 million pounds of molybdenum, and an inferred resource of 42 million tonnes grading 0.047% molybdenum and containing 43.7 million pounds of molybdenum.

The estimate is based on a pit-limited resource and is modeled using a "conservative US$15 per pound molybdenum price," O'Brien said. Stuhini now plans to complete a preliminary economic assessment of the project to evaluate the economics of the deposit, followed by a feasibility study. Most of the geotechnical drilling and mine design has been completed.

However, according to industry experts, without recycled and recovered molybdenum resources, they could be depleted within a century at the current rate of extraction of known resources. Stuhini Exploration says it is looking for a strategic partner with the financial and technical capacity to build a world-class mine of this scope.

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