Avanti Mining has selected Wardrop Engineering Inc. to undertake the prefeasibility study on its 100% owned Kitsault molybdenum mine located in British Columbia. This appointment comes after a bidding process in which Wardrop was the successful bidder out of five engineering firms. The study commences immediately and is expected to take seven months to complete.
Craig J. Nelsen, President and CEO of Avanti, commented that, Wardrop Engineering is a well recognized and respected firm, providing professional services to clients around the world. We are pleased to have a company of this calibre working with Avanti to help bring our Kitsault mine closer to production.
The Kitsault mine is a past producer with a high-grade resource. In December 2008, Avanti completed a preliminary economic assessment on the property that suggested a mine capable of producing approximately 25 million lbs of moly per year over a 15-year mine life, at a cash cost of less than $6.00 per pound. This prefeasibility study will first examine a range of production rates and determine the optimal production capacity.
Avanti has reported a Canadian Institute of Mining, Metallurgy and Petroleum (CIM) compliant resource estimate for Kitsault molybdenum mine. At a 0.04% Mo cut-off grade, this estimate contains an Indicated resource of 158 million tonnes grading 0.10% Mo, containing 348 million pounds of Molybdenum, and an additional Inferred resource of 133 million tonnes grading 0.08% Mo, containing 235 million pounds of molybdenum.