Luker
13 years ago
POSITIVE FEASIBILITY STUDY CONFIRMING ROBUST
ECONOMICS
http://www.kitco.com/pr/2342/article_12162010191532.pdf
AVANTI MINING RECEIVES POSITIVE FEASIBILITY STUDY CONFIRMING ROBUST
ECONOMICS FOR RESTART OF KITSAULT MOLYBDENUM MINE
December 17, 2010 TSX-V:AVT
Vancouver, British Columbia: Avanti Mining Inc. (TSX-V:AVT) (“Avanti”) is pleased to release
the results of the NI 43-101 Feasibility Study (“FS”) prepared by AMEC on its 100% owned
Kitsault Molybdenum property in northwest British Columbia, Canada. The complete report will
be filed on SEDAR and Avanti’s web site, www.avantimining.com, within 45 days of the issue of
this press release. All figures are in US dollars and were derived assuming 100% equity funding.
Highlights include:
• An increased resource estimate containing Measured and Indicated mineral resources
totaling 298.8 million tonnes grading 0.072% molybdenum and 4.20 g/t Ag containing
472.5 million pounds of Mo and 40.3 million ounces of Ag. This represents a 9.7%
increase of contained molybdenum and an 18% increase of contained silver over our prior
estimate for measured plus indicated mineral resources. In addition, the Inferred category
totals 157.1 million tonnes grading 0.050 % Mo and 3.65 g/t Ag containing 172.2 million
pounds of molybdenum and 18.4 million ounces of silver an increase of 330% of
contained molybdenum and 360% of contained silver over our previous resource estimate
for inferred mineral resources.
• The mine plan calls for a total of 232.5 million tonnes of proven and probable reserves
grading 0.081% molybdenum to be mined over a 16 - year mine life, producing 373.9
million pounds of molybdenum. The first five years of production averages 0.101% Mo;
• A long term exchange rate of .92 has been used to convert CDN$ to US $
• Initial capital costs are estimated at $770 million (+/- 15% accuracy estimated in C$ at
$837 million);
• Cash operating costs (mine gate) are estimated to be $4.76/lb of molybdenum;
• The average annual price of molybdenum for the base case scenario over the mine life as
forecast by the CPM Group ranges from $13.75/lb to $18.25/lb based upon their June
2010 Molybdenum Market Outlook. The average over the Kitsault mine life is $16.76 per
pound of molybdenum. Forecasts were also prepared for a low and a high price scenario.
• The base case after-tax NPV(8%) is $798 million, with an IRR of 26.8%
• Projected undiscounted net cash flow (after-tax) is $2.0 billion;
• Annual metal production for the mine life averages 23.4 million pounds of molybdenum
with the first five years averaging 29.6 million pounds per year;
• There is a life of mine roasting agreement in place with Molymet that assures roasting
capacity for the project;
• The mine has certain infrastructure in place with road and ocean freight access to the
mine site and will be serviced by the existing BC Hydro transmission grid;
• The reopening of the mine is projected to create over 350 high paying local jobs during its
16 year life, and at the peak of construction, over 650 jobs. The construction period is
estimated at 25 month;
• The project is progressing through environmental assessment process under the BC and
federal legislation as well as the Nisga’a Final Agreement and expects to submit its
Application in April 2011.
“We are delighted with the plan developed in this Feasibility Study by AMEC and other
contributors” stated Craig J. Nelsen, Avanti’s President and CEO. “We are pleased with the
projects robust economics and plan to utilize this study as the basis for negotiating strategic
partnerships to assist with the financing plan for Kitsault. Our schedule anticipates receipt of
permits toward the end of 2011 and construction to follow in early 2012 with initial production in
2014”
Project Description
The Kitsault property is located about 140 km north of Prince Rupert, British Columbia, and south
of the head of Alice Arm, an inlet of the Pacific Ocean. The property includes three known
molybdenum deposits, Kitsault, Bell Moly, and Roundy Creek. The Kitsault mine was a producer
of molybdenum between 1967 and 1972 and from 1981 to 1982 with total production on the
property during both periods being approximately 31 million pounds of molybdenum.
Kitsault has road access to the mine site, which is approximately 12 km from ocean transport
routes and is serviced by the BC Hydro transmission grid. The Feasibility Study estimates that
the Kitsault Mine would operate at an annual resource throughput rate of 14.6 million tonnes, or
40,000 tpd, with a strip ratio of 0.77:1 during a mine life of 16 years. The ore mined will be
crushed in a gyratory primary crusher, then ground using a SAG-ball mill configuration.
Conventional flotation and five stages of cleaning will produce molybdenum concentrate that will
be dried and packaged into bags for shipment. The life-of-mine molybdenum production is
estimated at 373.9 million pounds of molybdenum contained in 326,150 tonnes of molybdenum
concentrate produced from the processing of 232.7 million tonnes of reserves grading 0.081%
Mo plus planned dilution. Total molybdenum recovery varies depending on mill head grade but
is estimated to average 89.9%.
Mineral Resource/Reserves Statement
The mineral resources are reported in accordance with Canadian Institute of Mining, Metallurgy
and Petroleum (CIM) Definition Standards for Mineral Resources Mineral Reserves and their
Guidelines, and are compliant with National Instrument 43-101 (“NI 43-101”). The resource
estimate was prepared under the supervision of Greg Kulla, P.Geo, an independent Qualified
Person (QP), as this term is defined in NI 43-101. The mineral resource statement for the Kitsault
molybdenum project is presented in Table 1 below:
Table 1. Kitsault Mineral Resources, Effective Date 8 November, 2010,
Greg Kulla, P. Geo. (cut-off 0.021% Mo)
Category Volume Density Tonnage Mo Mo Ag Ag
Mm3 g/cm3 Mt % MLb Ppm Moz
Measured 27.6 2.65 73 0.093 150.3 4.28 10
Indicated 84.9 2.66 225.8 0.065 322.2 4.17 30.3
Measured + Indicated 112.4 2.66 298.8 0.072 472.5 4.2 40.3
Inferred 58.8 2.66 157.1 0.05 172.2 3.65 18.4
Notes:
1. Mineral Resources are inclusive of Mineral Reserves
2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
3. Mineral Resources are defined with a Lerchs–Grossmann pit shell, and reported at a 0.021% Mo cut-off grade
4. Mineral Resources are reported using a commodity price of Can$15.62/lb Mo, an average process recovery of 89%, a
process cost of Can$ 5.84/t and selling cost of $1.24 /lb of Mo sold. No revenue was assumed for Ag
5. Tonnages are rounded to the nearest 1,000 tonnes, grades are rounded to three decimal places for Mo and two
decimals for Ag
6. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and
contained metal content
7. Tonnage and grade measurements are in metric units; contained molybdenum is in imperial pounds.
8. There is potential for a 30 to 50% recovery of the silver reporting to a saleable concentrate. As of December 1, 2010,
the metallurgical work in support of this is indicative only, suggesting that although there may be a reasonable prospect
to extract this silver resource there is insufficient work to define the level of benefit that would support inclusion of silver
in a reserve estimate. No dedicated silver recovery circuit has been included in the process design, but there are
reasonable expectations that this can be added in the future.
The mineral resources are reported at a cut-off grade to reflect the “reasonable prospects” for
economic extraction. This estimate of the Kitsault molybdenum deposit is based open pit
extraction and Avanti and AMEC has not considered underground mining methods for deeper
portions of the deposit. Although silver has been reported in the mineral resource, it has not been
included in the economic analysis or the reserve statement below. There is sufficient
metallurgical testwork to suggest it could be an economic contributor but this work has not yet
reached the feasibility level of confidence. The recovery of silver remains a potential project
upside contributor, as well as the opportunity of conversion of Inferred to higher confidence
categories through additional drilling. Additional drilling will continue through the 2011 field
season in parallel with Basic and Advanced Engineering studies.
The following Table 2 reflects the sensitivity of the resource estimate to various cut-off grades.
Table 2. Mo Cut-off Grade Sensitivity Analyses within Resource Pit – Measured
and Indicated Resources
Cut-off Tonnes Mo Ag Mo Ag
Mo % (kt) (%) (ppm) (Mlbs) (Moz)
0.010 348,203 0.064 4.09 489.7 45.8
0.015 328,421 0.067 4.13 484.2 43.6
0.021 298,835 0.072 4.2 472.5 40.3
0.025 278,316 0.075 4.26 462.1 38.1
0.030 249,895 0.081 4.34 444.8 34.8
0.035 224,460 0.086 4.4 426.7 31.8
0.040 204,924 0.091 4.47 410.6 29.4
MEASURED & INDICATED RESOURCES
AMEC conducted a complete re-evaluation of all old historic and recent drilling information and
recalculated the mineral resources from first principals. 10 holes from the previous database
were not used in the calculation because of inability to verify core quality (recoveries) and assay
methods.
The Kitsault mine Mineral Reserves have been prepared in accordance with NI 43-101 standards
and CIM Definition Standard (2010). This statement has been prepared by Mr. Ryan W. Ulansky
(P.Eng.) of AMEC, a QP as defined in NI 43-101. These reserves are sufficient for 16 years of
operation at an annual production rate of 40,000 t/d. Mineral Reserves are summarized by
category in Table 3. The notes accompanying Table 3 are an integral part of the Mineral
Reserves and should be read in conjunction with the Mineral Reserve statement.
Table 3. Kitsault Mineral Reserves, Effective Date 8 November, 2010,
Ryan Ulansky, P. Eng. (cut-off 0.026% Mo)
Contained Mo
(MLb)
Proven 69.7 0.097 148.5
Probable 162.8 0.075 267.3
Total Proven and Probable 232.5 0.081 415.8
Category Tonnage (Mt) Mo (%)
Notes:
1. Mineral Reserves are defined within a mine plan, with pit phase designs guided by Lerchs–Grossmann (LG) pit shells,
and reported at a 0.026% Mo cut-off grade, after dilution and mining loss adjustments. The LG shell generation was
performed on measured and indicated materials only, using a molybdenum price of Cdn$13.58/Lb, an average mining
cost of Cdn$1.94/t mined a combined ore based cost of Cdn$5.84/t milled, and a selling cost of $1.24 /lb of Mo sold.
Metallurgical recovery used was a function of the head grade, defined as Recovery =7.5808*Ln (Mo %) +108.63 with a
cap applied at 95%. Overall pit slopes varied from 42 to 48 degrees.
2. Dilution and Mining loss have been accounted for based on a waste neighbour analysis. 1.5Mt of measured and
indicated material above cut-off was routed as waste. 1.9Mt of measured and indicated material below cut-off has been
included as dilution material. An additional 0.2Mt of inferred dilution material with grades set to zero is included in the
mine plan as millfeed.
3. Tonnages are rounded to the nearest 1,000 tonnes, grades are rounded to three decimal places for Mo.
4. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and
contained metal content
5. Tonnage and grade measurements are in metric units; contained molybdenum is in imperial pounds.
6. The life of mine strip ratio is 0.77
Mining
The single ultimate pit will be mined in six phases, with elevated cut-offs in the early years and
low grade stockpiling. A bulk mining approach has been selected, mining on 10m benches. The
selected mining fleet features one 26 m3 rope shovel, one 28 m3 electric hydraulic shovel, one 18
m3 front end loader, and up to ten 218-tonne haul trucks with related support equipment.
Benches will be drilled with 8 m by 8 m production drill patterns and wall control patterns as
required. The holes will be loaded and shot with a 70% emulsion/30% ANFO blend blasting
agent. Ore control will be based on blasthole samples assayed for molybdenum.
Waste rock will be stored in an expansion to the existing Patsy Waste Management Facility. Low
grade ore will be stockpiled throughout the mine life on the top of the existing Clary Waste
Management Facility. This ore stockpile will be reclaimed and processed during the last two
years of the operation.
The mining production schedule is presented in Table 4.
Table 4 Summarized Production Schedule
Ore to
Mining Ore Direct Low Grade Waste Total Strip Mill Mo Grade
Period to Mill (kt) Stockpile (kt) Mined (kt) Ratio Production (%)
-2 - - - - -
-1 362 8,500 23.48
1 13,836 3,801 19,910 37,547 1.13 14,029 0.104
2 14,600 4,126 22,940 41,666 1.23 14,600 0.106
3 14,600 3,088 21,375 39,063 1.21 14,600 0.114
4 14,600 5,969 13,315 33,884 0.65 14,600 0.088
5 14,600 2,833 15,349 32,782 0.88 14,600 0.096
6 14,600 2,581 14,136 31,317 0.82 14,600 0.096
7 14,600 2,087 12,675 29,362 0.76 14,600 0.089
8 14,600 1,043 12,725 28,368 0.81 14,600 0.082
9 14,600 1,024 11,061 26,685 0.71 14,600 0.08
10 14,600 291 8,125 23,016 0.55 14,600 0.074
11 14,600 - 6,523 21,123 0.45 14,600 0.072
12 14,600 - 5,360 19,960 0.37 14,600 0.068
13 14,600 - 3,657 18,257 0.25 14,600 0.079
14 14,600 - 2,103 16,703 0.14 14,600 0.081
15 1,833 - 475 2,308 0.26 14,600 0.037
16 - - - - 14,245 0.031
Totals 205,469 27,205 178,229 410,903 0.77 232,674 0.081
Note: As part of the dilution / mining loss adjustments, an additional .202 kt of inferred dilution material with grades set to zero
is routed to the mill
Processing
The proposed concentrator in this study is based on an annual resource throughput rate of 14.6
Mt, or 40,000 tpd at 92% plant availability, for the production of a molybdenum concentrate. The
processing plant is expected to operate 24 hours/day, 365 days/year. Over the life of mine, the
processing plant will produce an estimated 326,150 t of molybdenite concentrate grading 52%
Mo. The molybdenum recovery is variable with the average estimated at 89.9%.
The proposed process design is based on historical testwork results, the results from a recent
(2009 and 2010) test program and utilizing plant data from the previous Kitsault concentrator
operations. Plant design, principally the crushing-grinding circuit has been revised to reflect
current technologies using a primary crusher-SAG-ball mill configuration. The process design is
composed of the following unit processes:
• Primary crushing using a gyratory crusher;
• Grinding using a SAG–ball mill-pebble crusher configuration with cyclones for flotation
feed size classification;
• Rougher and scavenger flotation;
• Five stages of cleaner flotation with three stages of regrinding;
• Final molybdenum concentrate thickening, leaching for the removal of contaminants, and
the filtering, drying and packaging of the final concentrate; and
• Flotation to produce desulfidized tailings which will have a portion cycloned for dam
construction and the remainder will be deposited by gravity into an on-site Tailings
Management Facility (TMF). Pyritic tailings will be deposited in a separate submerged cell
in the TMF to prevent oxidation.
Capital Costs
Initial capital costs are estimated at $770 million, which includes $50 million for mobile mining
equipment. Preproduction stripping costs of $13 million are reflected in the initial operating
costs. Life of Mine sustaining mine capital was estimated to be $50 million, which is comprised
mainly of mobile equipment and TMF embankment ongoing construction. All capital costs are
[+/-15%] in this estimate.
The capital costs for the mine, plant and TMF are given in Table 5 below.
Table 5 Capital Cost Summary
Cost
(US$M)
1000 Mining 83.8
2000 Site preparation and roads 35.5
3000 Process facilities 195.1
4000
Tailings management and reclaim
systems 89.8
5000 Utilities ties 39.7
6000 Ancillary buildings and facilities 38.4
Total Direct Costs 482.3
8000 Owner’s costs 21.1
9000 Indirects 266.7
Total Indirect Costs 287.8
Contingency Incl above
Total Capital Costs 770
Area Description
Operating Costs
LOM unit cash operating costs are US$7.64/t milled and operating costs for the processing plant
are estimated at $4.36/t milled (±15% accuracy). General and administrative costs have been
estimated at $1.00/t milled. The Life of Mine unit cash operating costs are also summarized in
Table 6 below:
Table 6. Unit Cash Operating Costs (LOM average – US$)
Area Total
LOM(
00) US$/t Milled US$/lb Mo
Mine Operations 528,038 2.27 1.42
Processing Operations 1,014,030 4.36 2.71
Administration 232,745 1.00 0.63
Total 1,774,813 7.64 4.76
Project Economics
The Feasibility Study economic results utilized assumptions summarized in the Table 7 below:
Table 7 Financial Analysis Parameters
Parameters Inputs
General Assumptions
Mine Life 16 years
Available mill operating days per year 365 days/y
Production Rate (average) 40,000tpd
Average Process Recovery 89.9%
Molybdenum Concentrate - LOM 326,150t
CDN$:US$ exchange rate .92
Market
Discount Rate 8%
Base Case LOM average molybdenum price $16.76/lb
Royalty
Amax Zinc (Newfoundland) Ltd Net profits Interest 9.22%
Alcoa Royalty 1.0%
The FS economic model for the base case in this study assumes a LOM average molybdenum
price of $16.76/lb for revenue purposes, as projected by CPM Group.
The after-tax NPV at an 8% discount rate over the estimated mine life is $798 million. The aftertax
IRR is 26.8%. Payback of the initial capital investment is estimated to occur in 2.6 years after
the start of production
Sensitivity
Sensitivity analysis for key economic parameters is shown in Table 8 prior to tax effects. This
analysis suggests that the project is most sensitive to exchange rates followed by commodity
prices. The Project is least sensitive to operating and capital costs.
Table 8 Base Case Sensitivity to Pre-Tax NPV at 8% Discount Rate
-30% -20% -10% 0% 10% 20% 30%
Exchange rate 2,424 1,922 1,531 1,219 963 749 569
Capital expenditure 1,426 1,357 1,288 1,219 1,150 1,080 1,011
Operating expenditure 1,485 1,396 1,307 1,219 1,130 1,041 953
Metal price 365 650 934 1,219 1,503 1,787 2,071
Factor
SENSITIVITY OF PRE-TAX NPV @ 8% Change in Factor
Development Timetable
A construction schedule has been established that is contingent on the following milestones to
be realized:
Table 9: Project Milestones
Milestone Date
Notice to proceed 1-Jan-12
Begin crushing and screening at pit site 1-Jan-12
Begin earthworks at plant site 2-Mar-12
Begin work at south embankment 1-Apr-12
Construction camp ready for partial occupancy 1-Jun-12
Construction power and communications at plant site compete 30-Jun-12
Commence concrete at plant site 1-July-12
Construction camp ready for full occupancy 30-Sep-12
Truckshop construction complete 30-Oct-13
Complete installation of power and distribution 31-Oct-13
Complete north embankment 31-Oct-13
Begin commissioning 1-Dec-13
Plant ready for start-up 29-Jan-14
Complete south embankment 30-Jan-14
The NI 43-101 Preliminary Feasibility Study, Avanti Mining Inc., Kitsault Molybdenum Property,
British Columbia, Canada was prepared by industry consultants, all of whom are independent of
Avanti Mining Inc. and are QP’s under National Instrument 43-101. The QP’s have reviewed and
approved this news release. The consultants (QP’s) with their responsibilities are as follows:
AMEC Inc. under the direction of Mr. Greg Kulla (P. Geo.) for matters relating to geology and
mineral resource reporting.
AMEC Inc. under the direction of Mr. Ryan W. Ulansky (P.Eng.) for matters and costs relating to
mineral reserve statements, mining, mining capital, and mine operating costs.
AMEC Inc. under the direction of Mr. Tony Lipiec (P.Eng.) for matters relating to the metallurgical
testing review, mineral processing, and process operating costs.
SRK Consulting (Canada) Inc. (SRK Canada) under the direction of Mr. Peter Healey (P.Eng) for
matters and costs relating to mine closure and reclamation.
SRK US under the direction of Mr. Michael Levy (P.E., P.G.) for matters relating to the pit slopes.
Knight Piésold Ltd. (KP) under the direction of Mr. Bruno Borntraeger (P.Eng.) for matters and
costs relating to plant site geotechnical conditions, surface water diversions and the Tailings
Management Facility (TMF).
Avanti Mining Inc. is focused on the development of the past producing Kitsault molybdenum
mine located north of Prince Rupert in British Columbia. Mr. Kenneth Collison, Senior Vice
President of Project Development for the Company and a Qualified Person as defined in NI 43-
101, has reviewed and approved the scientific or technical information in this press release.
For further information, please visit www.avantimining.com, or contact:
Craig J. Nelsen, Chief Executive Officer, 303-565-5491, extension 4471, or
A.J. Ali, Chief Financial Officer, 303-565-5491, extension 4472
Luker
13 years ago
Avanti 81 Meters Grading 0.383% Moly From Initial Confirmation Drilling at Roundy Creek
November 23, 2010
--------------------------------------------------------------------------------
Vancouver, British Columbia: Avanti Mining Inc. (TSX-V: AVT) through its wholly owned subsidiary, Avanti Kitsault Mine Ltd. ("Avanti" or the "Company") is pleased to announce that it has received the results of an initial six hole program intended to confirm historical drill information at its Roundy Creek prospect that lies 5 km west of the Kitsault Mine in northwest BC. The Roundy Creek deposits consist of three contiguous zones which from west to east are; the Sunlight Zone, Sunshine Creek Zone and Roundy Zone. All six holes were drilled within the central Sunshine Creek Zone of this prospect. Hole RC10-2 encountered 81 meters grading 0.383% Mo starting at 3 meters below the surface. Included within this interval were 48 meters grading 0.611% Mo from 21 meters depth and 21 meters grading 1.212% Mo from 48 meters. True thicknesses are not understood at this point in time.
The Roundy Creek deposits contain an extensive historical database of 157 drill holes totaling 9,732 meters from surface and underground and approximately 2460 feet (750 m) of underground workings on two levels; 1050 foot level (320 m) and the 850 foot level (260 m). This work was completed by four different companies over the period from 1956 until 1983. In 1983, based upon a compilation of all past work by AMAX, historical resources (see cautionary note below on historical resources) were calculated that included; 1.45 million tonnes grading 0.180% Mo at the Sunshine Creek Zone, 2.74 million tonnes grading 0.10% Mo at the Roundy Zone and 50,000 tonnes grading 0.321% Mo at the Sunlight Zone. Craig J Nelsen, President and CEO, commented, "Avanti has been aware of the very high grade nature of Roundy Creek since it acquired Kitsault in 2008. This initial program was intended to confirm that these historic grades are present and to plan a follow-up program for 2011. While Roundy Creek is not a component in the Feasibility Study at Kitsault expected to be completed by December 15th, it is important that we understand the controls on this prospect to be able to determine if Roundy Creek could contribute a small tonnage of high grade material in the early years of Kitsault."
The drill results from the six-hole Sunshine Creek, 1,025 meter program follow on Tables 1 and 2 and a drill location map can be found at http://www.avantimining.com/i/pdf/RoundyCreekDrillLocations2010.pdf:
Table 1. 2010 Drill Locations
Sunshine Creek Zone: Roundy Creek Deposits
Hole #
Northing
Easting
Elevation
Nominal
Nominal
Total
N83 Z9(m)
N83 Z9(m)
meters
Azimuth
Inclination
Depth(m)
RC10-01
6142266.13
468504.59
344.26
000
-90
117.68
RC10-02
6142252.73
468553.90
336.64
000
-90
328.93
RC10-03
6142253.22
468554.74
336.14
035
-70
187.14
RC10-04
6142255.43
468586.47
321.88
000
-90
133.72
RC10-05
6142224.20
468516.73
363.56
000
-70
128.72
RC10-06
6142223.30
468516.33
364.26
000
-90
129.24
total
1025.43
Table 2. Preliminary Drill Results
Sunshine (Creek) Zone: Roundy Creek
<>
Hole Number
From (m)
To (m)
Length (m)
%Mo
<>
RC10-01
3.0
36.0
33.0
0.111
<>
inc
12.0
30.0
18.0
0.151
<>
48.0
51.0
3.0
0.148
<>
87.0
93.0
6.0
0.045
<>
RC10-02
3.0
84.0
81.0
0.383
<>
inc
21.0
69.0
48.0
0.611
<>
inc
48.0
69.0
21.0
1.212
<>
96.0
123.0
27.0
0.044
<>
135.0
141.0
6.0
0.083
<>
RC10-03
3.0
159.0
156.0
0.120
<>
inc
33.0
114.0
81.0
0.187
<>
inc
39.0
48.0
9.0
0.246
<>
inc
102.0
111.0
9.0
0.537
<>
RC10-04
3.0
84.0
81.0
0.103
<>
inc
24.0
60.0
36.0
0.157
<>
RC10-05
9.0
93.0
84.0
0.079
<>
inc
69.0
93.0
24.0
0.145
<>
RC10-06
36.0
69.0
33.0
0.054
<>
All of the samples collected were delivered by Avanti personnel to ALS-Chemex's prep lab in Terrace, B.C. where they were logged into the computer tracking system, crushed, split and a pulp sample prepared. The pulp samples were sent to ALS Chemex's laboratory in Vancouver, B.C for analysis by Inductively Coupled Plasma. ALS-Chemex is an ISO/17025 accredited laboratory. ALS-Chemex monitors quality control through the introduction of blanks, standards and duplicate sampling. In addition, Avanti personnel routinely insert blanks and standards into the sample stream and request duplicate analysis when appropriate. Bruce Davis, FAusIMM, consultant for the Company and a Qualified Person as defined by NI 43-101 is responsible for monitoring QA-QC performance and the technical information contained in this release.
Avanti is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia. Kitsault has Proven and Probable reserves of 215 million tonnes grading 0.085% Mo and containing 368 million pounds of recoverable molybdenum as outlined in the Technical Report dated December 15, 2009 which is available on the Company's website as well as at www.sedar.com. Mr. Kenneth Collison, Senior Vice President of Project Development for the Company and a Qualified Person as defined in NI 43-101, has reviewed and approved the scientific or technical information in this paragraph.
For further information, please visit www.avantimining.com, or contact:
Craig J. Nelsen, Chief Executive Officer, 303-565-5491, extension 4471, or
A.J. Ali, Chief Financial Officer, 303-565-5491, extension 4472
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Historical Resource Statements: The historical resource estimate was completed in 1983, prior to the implementation of NI 43-101and is not compliant with current accepted reserve and resource classifications as set forth by the Canadian Institute of Mining and Metallurgy. Given the quality of the historic work completed on the Property, the Company believes the resource estimate to be both relevant and reliable. However, a qualified person has not completed sufficient work to classify the historic mineral resources as current mineral resources or mineral reserves as defined in NI 43-101, and the Company is not treating the historic resources as current. Therefore, the historical resource estimate should not be relied upon.
Forward-Looking Statements: This news release contains certain forward-looking information concerning the business of Avanti Mining Inc. (the "Corporation"). All statements, other than statements of historical fact, included herein including, without limitation; statements about the recoverability of molybdenum at the Kitsault property, the completion of the feasibility study, the potential of the Roundy Creek deposit and other matters related to the development of the Kitsault molybdenum mine, are forward-looking statements. These forward-looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in the Corporation's Annual Information Form for the year ended December 31, 2009, which is available at www.Sedar.com. The Corporation is under no obligation to update forward-looking statements if circumstances or management's opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
You can view the Previous News Releases item: Wed Nov 10, 2010, Avanti Announces Progress on BC and Canadian Environmental Assessment
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
MWM
13 years ago
Hot Features
Premium
