SOURCE: Ruby Creek Resources, Inc.

Ruby Creek Resources, Inc.

January 23, 2012 08:36 ET

Ruby Creek Update

DAR ES SALAAM, TANZANIA--(Marketwire - Jan 23, 2012) - Ruby Creek Gold Plateau Camp -- Ruby Creek Resources, Inc. (OTCBB: RBYC), a gold exploration and mining company with operations in Tanzania, is providing this update.

Mining Update
As reported in the News Release of December 5, 2012, the startup of commercial gold production was delayed into January mainly due to the lateness in the closing of the Gold Standard acquisition. At all times Ruby Creek must operate on our first Mining License and lands within the Mining Laws of Tanzania.

All the mining processing equipment has been moved from the Songea region and is onsite on our Mining License. Additional support equipment is still being moved with an estimated completion date of February 10, subject to road and weather conditions. Some of this new equipment is going immediately into service while other pieces are being serviced or rebuilt by Ruby mechanics at our Gold Plateau Camp.

Currently on-site are Rob Slavik, CEO and Founder of Ruby Creek, Johan Coetzee, Ruby Creek's Mining Engineer and Bob Gray, Ruby Creek's Gold Plateau Project Manager, overseeing the installation of the production plant. We are on track and are expected to start commercial gold production by the end of January. This first phase is targeting startup operations with a ramp-up to 50 tons/hour, followed by the next phases of installation with the goal of achieving a 200 tons/hour processing rate in the short term. Planning is underway for additional plant and equipment with technical plans for plants with capacities of 350 tons/hour to 1,000 tons/hour being posted on our website prior to February 15.

Additional gold processing equipment is being built on the MK test mine site and is expected to be operating prior to February 15. Hand-mining locations are being set up in various locations to continue testing, with the first site becoming operational last week.

Technical Report Update
Ruby's Chief Geologist Jan Serfontain is developing the methodology for the Gold Plateau Technical Report (Competent Persons Report - "CPR"), which is carried out to JORC standards. Mr. Serfontain explains, "One my reasons for joining Ruby Creek was to be able to develop a CPR of a large alluvial project for a senior listing, likely the first ever, and hopefully become a model that can be applied to other deposits."

Tanzanian Corporate Update
Ruby's Office in Dar es Salaam continues to grow and improve as Office Manager, Ms. Pauline Johns and our New York-based Controller, Mr. Dan Bartley, refine our banking, payment systems and reporting procedures. We have recently hired a Human Relations Manager.

Our Tanzania operations, banking and holdings are being organized under Ruby Creek's new Tanzanian subsidiary, Tanzania Ruby Creek, which will become the holder of our 70% of Ruby Creek Tanzania, our 95% of Gold Standard Tanzania, our 99% of Ruby Creek Diamonds and 99% of Ruby Creek Gold helping to position ourselves for continued growth and expansion.

New York Corporate Update
Candidates for additional directors, officers and management are being considered as we continue to expand and a Special Shareholders Meeting is being called this week that must be held in 35 to 60 days from that date.

Community Work Update
Our schoolhouse is expanding and parents have requested that teaching hours be expanded to 5 days a week from the current 3 days. Adult education classes for reading are being added on Sunday afternoons.

Ruby Creek is developing a new model village outside of the Gold Standard Camp, with a community gathering and marketplace, water, sanitation, solar power and a layout grid for the building lots for additional workers and their families.

Ruby's CEO Comments
Robert Slavik, President and CEO and Founder of Ruby Creek, commented, "Growing pains. We continue to experience some problems that would be expected from any company being built from the ground up, growing as fast as we have and facing the challenges that have developed along the way. You have to be here day to day to really understand the magnitude and complexities and see the great work our staff and crews are doing to face and beat those challenges -- such as working in an area where we truck our drinking water 138 km to Camp, supplies, fuel and parts come from around the country in all seasons, in torrential rain or in sunshine -- such as knowing that our Songea equipment move is an 895 km trip over rough and difficult roads. And I am proud to say we are getting it done.

"Who knew just what a challenge was undertaken, starting as a one man company in June 2009 when I assumed control of a quiet little company called Ruby Creek Resources, adding our second employee in January, 2010, and our third employee in May, 2010 and growing to where we are today, 120 full time employees, with our first Mining License, mining and processing equipment on 1500 sq km of highly prospective gold bearing lands and all this with gold prices doubling since I first came to Tanzania in April 2008.

"And I am happy to report that we are making a big difference in the lives of the people that we have come in contact with, from employees, casual laborers, suppliers, and families and students in the community we work in.

"As a greater than 5% shareholder, I have called a Shareholders Meeting to give our Shareholders a chance to voice their opinions. I have always had a vision about what a mining company in a developing nation should look like, and I am confident that we are off to the right start. I am very appreciative of this opportunity and thank you all for the support you have given our Company, Ruby Creek, as we continue to build and the trust you have given me."

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.

Robert Slavik
President and CEO

Contact Information

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