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
C$812-million.

Duration
The mine is scheduled for reopening in 2015.

Latest Developments
Approval of Avanti’s environmental assessment application, in respect of the Kitsault molybdenum mine, has been granted by Environment Minister Leona Aglukkaq.

This followed the receipt of an environmental assessment certificate for the mine project in 2013 and an amended Mines Act permit on June 16.

The decision, reached after a comprehensive, science-based review led by the Canadian Environmental Assessment Agency (CEAA), concludes that the project is “not expected to result in any significant adverse effects based on the mitigation measures and conditions of the environmental assessment approval”.

The CEAA and federal Ministers have also concluded that the Crown's legal obligation to consult with First Nations and the Nisga'a Nation under Chapter 10 of the Nisga'a Final Agreement has been met.

“With this significant milestone having been achieved, we can now concentrate our efforts on the construction phase of the mine, on our project debt negotiations with our banking syndicate and on the exploration of other financial options, including a sale of silver stream or investment by a strategic partner,” says Avanti CEO Gordon Bogden.

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.