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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (28369)	11/3/2008 10:17:01 PM
From: LoneClone	Read Replies (1) \| Respond to of 193491

Study indicates Avanti could produce 25,6Mlb/y from BC moly mine miningweekly.com By: Liezel Hill Published on 3rd November 2008 Updated 7 hours ago TORONTO (miningweekly.com) – Molybdenum hopeful Avanti Mining could produce an average of 25,6-million pounds a year of molybdenum, for 15 years, at its newly acquired Kitsault project, in British Columbia, according a preliminary economic assessment. Initial capital costs are estimated at $424-million, and operating costs are forecast at $5,97/lb of molybdenum. Avanti bought the past-producing mine from a subsidiary of Alcoa last month for $20-million. Kitsault produced about 30-million pounds of molybdenum until it was closed in 1982, because of low metal prices, and certain infrastructure is still in place, which will make mine development easier. The economic assessment, completed by SRK Consulting, “confirms our belief that the Kitsault mine is a truly world-class resource," said Avanti president and CEO Craig Nelsen. “Given the property's existing infrastructure and substantially shorter shipping routes to Asia from the world-class port in Prince Rupert, we have no doubt that the Kitsault mine will become a major global contributor to molybdenum production." According to a NI 43-101-compliant resource estimate published in August, Kitsault contains an indicated mineral resource of 158-million tons at a 0,04% moly cut-off grade, grading 0,10% molybdenum, for 348-million pounds of molybdenum. Inferred mineral resources are estimated at 133-million tons, grading 0,08% molybdenum, containing 235-million pounds of molybdenum. Avanti is now working towards completing a formal prefeasibility study by the first quarter of 2009, and will include a further resource update, pit optimisation, finalisation of general site arrangements and evaluation of infrastructural alternatives. Once the prefeasibility study is finalised, the company then expects to progress directly to a definitive, full feasibility study to be completed by the end of 2009. This work will finalize all assumptions included in the prefeasibility and will, subject to positive outcome, be used as a bankable document for financing. Molybdenum is used strengthen steel, in steel pipes and drills, and other extreme high- or low-temperature applications, as well as to prevent corrosion.