NEW YORK, March 12, 2012 /PRNewswire/ -- Ruby Creek
Resources, Inc. (OTCQB: RBYC), a gold exploration and mining
company with operations in Tanzania, is pleased to provide an update on
gold mining operations.
Ruby Creek continues the test and
commissioning phase of mining operations on the GS1 mining license
area. In the month of February, several test pits were dug
and material processed through our wash plant system. Gold
recovered from the pits have yielded positive results in terms of
the implied grade of the material tested and indicate that the gold
recovery system is working well. Further minor modifications
to the wash plant system in March are expected to increase recovery
rates and to handle the constant processing of moderate material
volumes in April.
Rainy season has just begun in Tanzania where March and April typically have
the highest totals of precipitation. Ruby Creek's mining and logistics staff is
working through the weather challenges by successfully repairing
and moving mining equipment to the Project. All equipment is
expected to be at the mining license production area around the end
of April. It is anticipated that deliveries of essential
earth moving equipment to the production site from the Songea and
Dar es Salaam areas will occur in the next four weeks.
Ruby Creek presently has one of
three wash plant systems operating. Two trommels will be
moved from Songea, modified for gold production activities and will
form the backbone of the anticipated two other wash plant systems
in coming weeks.
The Company is pleased to report that it is using very simple
mining methods to get good final recovery rates of gold from the
source material. The wash plant system consists of an ore
hopper bin, a washing trommel, sluice boxes lined with Vortex
Matting and Miners Moss and mechanical jigs. The simplicity
of the wash plant system reduces down time and requires low capital
investment to replicate. These systems are highly mobile and
can be broken down and set up in a different area in less than a
week. Our mining engineering team is presently evaluating and
optimizing each section of the wash plant gold recovery
system. In addition, Ruby
Creek presently has a placer mining expert on the Project
who is making recommendations relating to water management,
optimization and implementing readily available equipment from
South Africa to further enhance
gold production recovery and throughput volumes.
Dan Bartley, CEO said; "Our
skilled mining team has made tremendous progress. As
mentioned in early February, we anticipated transitioning from
intermittent test mining to full-time daily production over the
next eight weeks. Presently we are on track to meet that
timeline. I am pleased to announce that Ruby Creek anticipates booking its first revenue
from gold operations this month. Gold volumes and revenues
are expected to increase monthly until achieving maximum daily ore
process rates from the operation of our entire equipment fleet late
this summer. This is an exciting time for Ruby Creek as we transition from test mining to
full commercial gold production."
About Ruby Creek Resources, Inc.
Ruby Creek Resources, Inc. (www.rubycreekresources.com) is
a gold exploration and mining company. Ruby Creek operates in Tanzania through its subsidiaries,
Ruby Creek Gold (Tanzania) Limited and Ruby Creek Resources
(Tanzania) Limited.
Ruby Creek is the operator of the
Tanzania Gold Plateau Project, establishing operations and
infrastructure, along with the permitting process in support of the
full development and commencement of gold mining operations on the
project.
Forward-Looking Statements
This news release may include certain forward-looking
statements. All statements, other than statements of
historical fact, included in this release are forward-looking
statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ
materially from those anticipated in such statements. This
notice expressly qualifies all forward-looking statements in this
release. The Company, through its management, makes
forward-looking public statements concerning its expected future
operations, performance and other developments. Such
forward-looking statements are necessary estimates reflecting the
Company's best judgment based upon current information and involve
a number of risks and uncertainties, and there can be no assurance
that other factors will not affect the accuracy of such
forward-looking statements. It is impossible to identify all
such factors, factors that could cause actual results to differ
materially from those estimated by the Company. They include,
but are not limited to, government regulation, managing and
maintaining growth, the effect of adverse publicity, litigation,
competition and other factors, which may be identified, from time
to time in the Company's public announcements.
On behalf of Ruby Creek Resources, Inc.
Dan Bartley
Chief Executive Officer
SOURCE Ruby Creek Resources, Inc.