SOURCE: Ruby Creek Resources, Inc.

Ruby Creek Resources, Inc.

March 16, 2010 12:46 ET

Ruby Creek Closing on the Mkuvia Gold Project

NEW YORK, NY--(Marketwire - March 16, 2010) -  Ruby Creek Resources, Inc. (OTCBB: RBYC) announces the following;

Ruby Creek completes its Due Diligence on the Mkuvia Alluvial Gold Project
Ruby Creek has issued a Notice of Satisfactory Due Diligence to Douglas Lake Minerals, dated March 15, 2010 and will now be closing on the Mkuvia Alluvial Gold Project Purchase Agreement signed with Douglas Lake Minerals in November 2009. With respect to that Agreement, Ruby Creek has acquired the right to the development and mining of a 125 sq km portion of the 380 sq km Mkuvia Gold Project located in the south of Tanzania. Ruby Creek has agreed to purchase a 70% interest for $3,000,000 in a series of payments over 3 years, (see Company News Release dated November 9, 2009 and related SEC filings).

Ruby Creek has completed its initial payments of $250,000 to Douglas Lake Minerals and is up-to-date with all of its required commitments. With the Notice of Satisfactory Due Diligence, a payment of $100,000 will be remitted to Douglas Lake.

Douglas Lake established a joint venture on the Mkuvia in July 2008, having spent more than $2,100,000 in the preceding 18 months in exploration and in developing an understanding of the mineralization on a portion of the property. Douglas Lake is completing their mining license application as detailed in their Technical & Resource Report on the Mkuvia Alluvial Gold Project prepared in accordance with JORC and NI 43-101.

The Mkuvia Alluvial Gold Project is located in the Liwale and Nachingwea Districts, Lindi Region of the United Republic of Tanzania. The Project is the subject of a report titled the "Technical & Resource Report on the Mkuvia Gold Project," prepared by Laurence Stephenson, P.Eng. of British Columbia, Canada and Ross McMaster, MAusIMM of Queensland, Australia. Mr. Stephenson and Mr. McMaster are independent and Qualified Persons ("Q.P.s") in accordance with JORC and NI 43-101.

Ruby Creek (Tanzania) Limited
Ruby Creek also announces the signing of an agreement for the creation of a Tanzanian Joint Venture Company, "Ruby Creek (Tanzania) Limited," for the management of this 125 sq km Mkuvia Alluvial Gold Project. The joint venture company will be owned 70% by Ruby Creek Resources, 25% by Douglas Lake Minerals and 5% by Mr. Mkuvia Maita, the original Prospecting License owner. Ruby Creek (Tanzania) Limited will be the operating company and will hold title to the 125 sq km of lands relating to Mkuvia Alluvial Gold Project. Ruby Creek (Tanzania) now assumes control of the permitting and licensing processes.

Ruby Creek Closes Private Placement
On March 10, 2010, Ruby Creek filed a Form D disclosing the completion of a simultaneous Regulation D and Regulation S Private Placement of unregistered securities under Rule 506 of the Securities Act of 1933. The Company sold 1,600,000 Units at a price of $0.125 per Unit for a total of $200,000 to 20 investors. Each Unit consists of one restricted common share and one warrant. Two warrants are required to buy one restricted common share at a price of $0.25 per share for a period of up to two years. The total amount raised was $200,000.

Infrastructure Meetings held in Tanzania
Ruby Creek President Robert Slavik, in a series of meetings held in Tanzania in late February 2010 with Ruby Creek's joint venture partners and other potential operating personnel, began the process of establishing infrastructure in support of the full development and commencement of operations on the Mkuvia Alluvial Gold Project. This includes test mining with the aim of selecting the appropriate processing plant, continuing evaluation for the engagement of alluvial geologists and geo-techs and the support structure for those production and exploration teams, consulting and contracting work by the Geological Survey of Tanzania, identifying staff for logistics, support and accounting as well as camp support and office and housing in Dar es Salaam.

Mr. Slavik remarked on the cooperation the Company has received from its joint venture partners and Tanzanian officials, "From the outset, we have been encouraged by the manner in which the Tanzanian mining authorities and our joint venture team have worked together to move our Mkuvia Gold Project forward. I am excited for all of our stakeholders in achieving these milestones and with the startup of actual operations in sight."

For further information please contact Robert Slavik at rts@rubycreekresources.com

Forward-Looking Statements
This news release may include certain "Forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act, as amended. 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.

Signed
"Robert Slavik"

Contact Information

  • Robert Slavik
    President, Ruby Creek Resources, Inc.