Name and Location
Kitsault molybdenum project, British Columbia, Canada.

Client
Avanti Mining, through its wholly owned subsidiary, Avanti Kitsault Mine.

Project Description
The Kitsault mine was a producer of molybdenum from 1967 to 1972 and from 1981 to 1982, with total production on the property during both periods being about 31-million pounds of molybdenum.

The project involves redeveloping the mine. It consists of an openpit, an ore processing plant, ancillary mine infrastructure, tailings and waste rock management facilities, buildings, an explosives manufacturing facility and storage magazines, water management facilities and a power substation. It is envisaged that the Kitsault mine will operate at a yearly mill throughput rate of 14.6-million tonnes, or 40 000 t/d, with a strip ratio of 1.05:1 for a mine life of 16 years. The ore mined by conventional truck-and-shovel openpit methods will be crushed in a gyratory primary crusher and then ground using a semiautogenous 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 374-million pounds, contained in about 350 800 t of molybdenum concentrate produced from the processing of 228.2-million tonnes of reserves grading 0.083% molybdenum. Total molybdenum recovery will vary depending on mill head grade, but it is estimated to average 90% over the life of the mine.

Value
Initial capital costs, including working capital, are estimated at $938-million.

Duration
The mine is scheduled for reopening in 2015.

Latest Developments
The final 30-day public comment period on the comprehensive study report by the Canadian Environmental Assessment Agency (CEAA) started on August 26. The CEAA has been conducting a comprehensive environmental assessment on the Kitsault mine Project since November 8, 2010. The CEAA’s comprehensive study report tables conclusions and recommendations regarding the implementation of mitigation measures.

According to the agency: “ . . . With the implementation of mitigation measures, the project is not likely to cause significant adverse environmental effects.”

The 152-page document does note, however, that the project might have potential adverse effects on nearby communities’ fisheries, wildlife and migratory birds and forest resources.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Avanti Mining, tel +1 604 620 7670 ext 222 or fax +1 604 620 9858.