Adanac gets provincial OK for Ruby Creek mine

VANCOUVER, British Columbia, Sept 11 (Reuters) - Provincial officials granted environmental approval on Tuesday to Adanac Molybdenum Corp's (AUA.TO) plan to mine the long-stalled Ruby Creek property in northern British Columbia.

The property near the gold rush town of Atlin was first staked in 1967, but the owner let the claim lapse because of low molybdenum prices. Adanac, a small-cap miner formerly called Stirrup Creek Gold, restaked the claim six years ago.

British Columbia said approval of the C$414 million open pit mine and processing plant is contingent upon Adanac meeting several environmental and cultural commitments to the Taku River Tlingit First Nation.

Adanac says the mine has 167 million pounds of recoverable molybdenum at an initial cost of US$6 a pound and a life expectancy of 22 years. Construction is expected to take two years.

The project is still awaiting federal approval, according to provincial officials.