Avanti Mining Announces the NI 43-101 Compliant Molybdenum Resource Estimate on the Past Producing Kitsault Mine, British Columbiaadmin
Tuesday, August 5th 2008
Avanti Mining Inc. (CNQ: AVMI) (“Avanti”) is pleased to announce a Canadian Institute of Mining, Metallurgy and Petroleum (CIM) compliant resource estimate for the Kitsault Molybdenum Mine, located in British Columbia. At a 0.04% Mo cut-off grade, this estimate contains an Indicated Mineral Resource of 158 million tonnes grading 0.10% Mo, containing 348 million pounds of molybdenum, and an additional Inferred Mineral Resource of 133 million tonnes grading 0.08% Mo, containing 235 million pounds of molybdenum. This resource estimate is the subject of a National Instrument 43-101 (NI 43-101) Technical Report dated August 5, 2008 and titled Technical Report Kitsault Molybdenum Property, British Columbia, Canada, which has been filed on SEDAR (www.sedar.com).
THE KITSAULT MINE
Avanti has signed a definitive purchase agreement to acquire an undivided, 100% direct interest in the Kitsault molybdenum mine and surrounding mineral tenures from Aluminerie Lauralco, Inc. (“ALI”), a wholly owned subsidiary of Alcoa, Inc. This acquisition is subject to due diligence, regulatory approval, and other customary conditions with a closing expected to occur no later than mid-October 2008. The mine, located within a few kilometers of tidewater on Alice Arm in the Skeena Mining Division of British Columbia, was a producer of molybdenum between 1967 and 1972, processing a total of 9.3 million tonnes of ore grading 0.11% Mo. From 1981 to 1982, under the ownership of Amax, Inc., 4.0 million tonnes of stockpiled and newly mined ore were milled, grading 0.08% Mo. Total production on the property during both periods was approximately 30 million pounds of molybdenum. Kitsault has developed road access to the mine site and is serviced by the BC Hydro transmission grid. The mine ceased operations in 1982 due to low molybdenum prices, but considerable historical reserves remained in place.
The resource estimate was created utilizing drill hole sample assay results generated during three major periods of drilling by Kennco Explorations (Western) Ltd., Climax Molybdenum Corporation of British Columbia Ltd., and Amax of Canada Ltd. The majority of drilling occurred prior to mine production in the late 1960′s, from 1974 to 1978, and again in 1981 to 1982. There are a total of 139 drill holes in the Kitsault database, with a cumulative length of 27,651 metres. Individual holes range in length from 3m to 763m in length and average 199m in length. Drill hole spacing averages approximately 60m throughout most of the deposit area.
The Indicated and Inferred Resource categories were limited by an optimized pit shell using a molybdenum price of $20/lb; a metallurgical recovery of 89%; unit mining cost and combined processing and G&A costs of US$2.00 and US$9.50, respectively; and slope angles of 40 degrees in all areas. The mineral resources are reported at a cut-off grade to reflect the “reasonable prospects” for economic extraction. SRK Consulting (U.S.), Inc. (“SRK”), auditor of these Mineral resources, considers that portions of the Kitsault molybdenum deposit are amenable to open pit extraction, and has not considered underground mining methods for deeper portions of the deposit.
There are no known factors related to environmental, permitting, legal, title, taxation, socio-economic, marketing or political issues which could materially affect the mineral resource.
Craig J. Nelsen, Avanti’s President and CEO, commented, “We are very pleased to have been able to utilize the data from the previous drilling campaigns conducted by Kennecott, Climax, and Amax and to convert this data into a CIM compliant resource statement in such a short amount of time. We are confident that this statement can be used as the basis for a Preliminary Economic Assessment that will be followed with a full Feasibility Study.”
The mineral resources are reported in accordance with Canadian Securities Administrators’ NI 43-101 and have been estimated in conformity with generally accepted CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves. The mineral resource estimate was prepared by Robert Sim, P.Geo., under the supervision of Bruce Davis, FAusIMM, using the historic drilling. The audit of this resource estimate was completed by Jeffrey Volk, P.Geo., Principal Resource Geologist with SRK., who is considered an independent qualified person (“QP”) as this term is defined in NI 43-101. Dr. Davis is the QP for this press release and has prepared or supervised the preparation of the scientific or technical information in this press release. The effective date of this resource estimate is July 16, 2008.
Avanti Mining Inc. is a newly formed company focused on acquiring, exploring, and developing mineral resource projects. With the acquisition of the Kitsault mine, Avanti will be focused on developing this formerly producing molybdenum prospect for the benefit of all stakeholders involved.
For further information, please visit www.avantimining.com.