Avanti Mining Inc. (OTC Other: AVNMF: TSX-V: AVT) continues to advance its Kitsault Molybdenum Mine, an update for which includes the following:
Technical
The final feasibility being prepared by AMEC is on schedule for completion by end of October 2010 and will incorporate the US$50 to US $70 million reduction in the initial capital expenditures in the tailing facility as well as other expected improvements from the pre-feasibility study of 2009.
Approximately 90% of the core from old drilling at the Bell Moly deposit has been recovered and is being re logged and re assayed. This deposit has historical unclassified resource of 96.4 million tonnes grading 0.54% molybdenum. (Note: Historic resource estimates do not comply with the CIM terminology under Canadian Securities Administrators NI 43-101 guidelines. The reader is cautioned that these estimates are not mineral reserves and should not be relied upon.)
Several of the drill hole collars at the Roundy Creek deposit have been located and the Company plans a confirmatory drill program this year to twin some of these holes.
Environmental
The Canadian Environmental Assessment Agency (“CEAA”) has accepted effective August 18, 2010 the addendum to the Kitsault Project Description filed with the British Columbia Environmental Office (“BCEAO”). This acceptance will result in a Notice of Commencement (NoC) to be issued by CEAA within 90 days of August 18, 2010.
BCEAO has circulated a draft section 11 order under the Environmental Assessment Act for comment by all interested parties.
The draft Application Information Requirement (“dAIR”) document will be filed with the BCEAO shortly.
Financing
The Company’s financing strategy includes a potential sale of a minority interest in the Kitsault project to raise its share of equity portion of the capital funding required to rebuild the mine. This strategy, if successful, will be less dilutive to the shareholders than raising the required equity through the public equity markets. The Company is in discussions with potential strategic partners.
The Company expects to negotiate off-take agreements for future molybdenum production with price protection mechanisms to support the debt component of the capital required. This is being done in conjunction with its debt advisor who has arranged meetings with some of its molybdenum consuming steel clients.
