SOURCE: Ruby Creek Resources, Inc.

September 07, 2011 11:32 ET

Ruby Creek Purchases More Mining Equipment

NEW YORK, NY--(Marketwire - Sep 7, 2011) - Ruby Creek Resources, Inc. (OTCBB: RBYC), a gold exploration and mining company with operations in Tanzania, announces that through a series of equipment purchases, Ruby Creek has increased its mining, exploration and support capacities at its Gold Plateau Project.

The largest equipment purchase is of all the contents of a mining camp located near Songea in southern Tanzania. This purchase resulted in Ruby Creek acquiring additional mineral processing equipment including two large trommels each with a capacity of over 40 cubic meters/hour (60 tons/hour), gravity separation equipment, gravel and water pumps, piping, generators, steel shipping containers, shop equipment, and all buildings and construction materials. This purchase also includes several passenger trucks, a Komatsu PC 200 excavator, Cat D7 bulldozer, two 7-ton dump trucks, a Hino highway transport truck and a 40-foot transport trailer. The total purchase price for the equipment is $160,000. Currently Ruby Creek has a crew onsite breaking down and shipping this equipment to its Camp at the Gold Plateau Project for refurbishment and upgrades where a full shop facility with all mechanical trades is being completed.

Additionally, in a series of other equipment purchases, Ruby Creek acquired a number of pieces of mining and support equipment; a 20 ton dump truck for ore feed as well as gravel supply for road upgrades; 4 passenger trucks were added to the fleet for transporting personnel and small supplies; a 10 ton flat deck truck with a crane was acquired for hauling supplies and a 40 ton triple axle low-bed trailer for transporting heavy equipment. The total expenditure of these purchases was $207,000.

This equipment is either onsite or enroute with the Company anticipating that all of this equipment will be available for use in gold production or supply activities at the Gold Plateau Project over the next 60 days. Including the costs for transport and refurbishment, the Company believes that this additional equipment, when completely refurbished, costs roughly one third of what it would be new.

Robert Slavik, President and CEO of Ruby Creek, said, "We are expanding quickly both with operations at Camp and in our administration and personnel services. It is very helpful to be able to identify and acquire mining equipment within Tanzania. The full mining camp at Songea that we just purchased is located only 10 hours driving from our Camp. Having found good equipment in-country within easy trucking distance as opposed to having to go offshore is very good. In addition to saving the Company money it allows us to attain additional important gold mining and support capabilities that we could not have been able add so quickly. Adding this to the equipment in our impending Gold Standard acquisition gives the Company 4 excavators, 5 dump trucks, 3 bulldozers, and 3 loaders as well as fuel, service and supply equipment for men and equipment. Our Camp is now at over 100 men and we are adding 20% more capacity for our expanding mining and geology personnel. We are making significant progress."

About Ruby Creek Resources, Inc.
Ruby Creek Resources, Inc. (www.rubycreekresources.com) is an 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" 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.

On behalf of Ruby Creek Resources, Inc.

Robert Slavik
President and CEO

Contact Information

  • For Further Information Contact:
    Toby Hansen
    Corporate Communications
    (212) 679-5711 ext 310
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