Avanti Mining Inc. (TSXV:AVT) released results of an update to the 2010 NI 43-101 compliant Feasibility Study on its Kitsault Molybdenum property in BC and the report will be filed on SEDAR. The project is applying for an Environmental Assessment Certificate through the BC and federal legislation as well as the Nisga’a Final Agreement. NI 43-101 compliant mineral resource statements were prepared and Roundy Creek yielded an Indicated Mineral Resource of 1.94 million tonnes grading 0.109% Mo at the Sunshine and Sunlight Areas containing 4.7 million pounds molybdenum, and an additional Inferred Mineral Resource of 0.33 million tonnes grading 0.079% Mo for 0.6 million pounds of molybdenum. The neighboring Roundy Area contained an additional Inferred Mineral Resource of 4.32 million tonnes grading 0.073% Mo containing 7.0 million pounds of molybdenum.

As quoted in the press release:

Highlights include:

  • Initial capital costs including working capital are estimated at $938 million and LOM sustaining capital at $ 106 million (+/- 15% accuracy);
  • Cash operating cost at the mine site are estimated at $6.65 per pound of Mo produced, but it drops to $5.73 per pound of Mo (US$ 5.33), after a by-product silver credit of $0.91 per pound of molybdenum is realized. Total cash cost including transportation and beneficiation would be $6.73 (US$ 6.26) per pound of Mo.
  • The new mine plan based upon an updated resource model developed in 2012 calls for a total of 228 million tonnes of proven and probable reserves grading 0.083% molybdenum and 5.0 g/t silver to be mined over a 16-year mine life, producing 374 million pounds of molybdenum and 14.4 million ounces of silver. The molybdenum grade to the mill over the first five years of production averages 0.103% Mo;
  • At a long term molybdenum price of US$14.50/lb, that approximates the 3 year trailing average price, the project has an after tax Net Present Value (NPV) at an 8% discount rate of $433 million and a 16.6% IRR.
  • Inaugural NI 43-101 compliant mineral resource statements were prepared at the Roundy Creek and Bell Moly prospects. Roundy Creek is located 4 km due west of Kitsault, yielded an Indicated Mineral Resource of 1.94 million tonnes grading 0.109% Mo at the Sunshine and Sunlight Areas containing 4.7 million pounds molybdenum, and an additional Inferred Mineral Resource of 0.33 million tonnes grading 0.079% Mo for 0.6 million pounds of molybdenum. The adjacent Roundy Area contains an additional Inferred Mineral Resource of 4.32 million tonnes grading 0.073% Mo containing 7.0 million pounds of molybdenum.
  • The Bell Moly prospect located 6.5 km northeast of Kitsault, yielded an Inferred Mineral Resource of 109.7 million tonnes grading 0.048% Mo containing 115.8 million pounds of molybdenum.

Click here to read the Avanti Mining Inc. (TSXV:AVT) press release

See this press release on Marketwire
Click here to see the Avanti Mining Inc. (TSXV:AVT) profile