USGS Says Bleak 2009 Economy Cut U.S. Mineral Production Value by 22%

RENO, NV - Continued declines in the U.S. housing market and automobile manufacturing resulted in reduced production and consumption of metals in the United States last year, the U.S. Geological Survey noted in its 2010 Minerals Surveys.

Nevertheless, the USGS advised, the recovery of the U.S. primary metals industry indicated that an expansion in industry activity could occur this year.

The estimated value of minerals produced at U.S. mines last year was $57 billion, a 20% decline from $72 billion in 2008. The value of domestic metal mine production in 2009 was $21.3 billion, about 22% less than in 2008. Although the quantity of metal production declined 7%, the value of that production declined by 22% last year.

Avanti Mining Closes Purchase of Contiguous Mineral Tenures at Kitsault

As a follow up to its January 14, 2010 press release, Avanti Mining Inc. (TSX-V: AVT) has closed the purchase of a 100% interest in 102 mineral tenures adjacent to its Kitsault molybdenum property in northern British Columbia from TA Mineral Resources Ltd. and Quadra Coastal Resources Ltd.  These tenures triple the acreage controlled by Avanti and allow for future exploration.

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Global Commodity Assets Under Management Increased to US$235 Billion in 2009

RENO, NV - Scotiabank economist Patricia Mohr estimated Tuesday that US$60 billion flowed into commodity related investments last year-boosting global commodity assets under management to about US$235 billion in 2009, compared to only US$6-10 billion in 2008.

Although China has begun to tighten their monetary policy, Mohr found base metals prices eased back late this month, but “continue to hold their ground fairly well.”

Fund and speculative interest in base metals has been driven by the China and emerging Asia story, she noted.  Of the 32 commodities covered in the Scotiabank Commodity Price Index, Mohr said lead was the strongest performing commodity last year. “Strong battery demand for E-Bikes in China (electrically driven bicycles) contributed substantially to this stellar performance,” she noted.

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Avanti Mining Expands Land Holdings 300% at Kitsault

Avanti Mining (TSX-V: AVT) signs definitive agreement to purchase a 100% interest in 99 mineral tenures adjacent to its Kitsault molybdenum property in northern British Columbia.  These tenures triple the acreage controlled by Avanti and allow for future exploration.

In consideration of this purchase, Avanti agrees to pay TAM the sum of C$400,000 in cash and issue 5,500,000 Avanti units. Each unit will consist of one common share and one-half a share purchase warrant exercisable for a period of two years following the closing of the Agreement, with an exercise price of C$0.30/share.

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Avanti – Production at Kitsault by 2013

One of the best parts of our job is partnering with a company in its early stage and then watching as others realize that we were right, but that we were just way ahead of everyone else.  Today’s example, Avanti Mining Company.  We introduced Avanti just about a year ago when the stock was trading around $0.08 per share.  Fast forward to today, the stock is at $0.24, an increase of 200%, and volume is up considerably.  I guess others are finally starting to take notice of this little gem of a company.  So much so, the Company was recently featured in Moly Investing News, an excerpt from which can be found below.

Overview

Avanti has acquired an undivided 100% direct interest in the past producing Kitsault Molybdenum mine in Northern British Columbia. A recently released Preliminary Feasibility Study estimated operating costs of $4.43/lb of moly and undiscounted net cashflow of $1.5 billion. Avanti intends to develop this mine in a manner acceptable to First Nations and all stakeholders involved.

What we like about Avanti!

• Past producing moly mine with proven management team
• Pre-Feasibility Study showing 15 year mine life producing 368 million pounds of moly
• High grade Molybdenum Resource of 096%
• Discounted NPV of $2.25 per share
• Rapid Development Plan

Chief Property

Kitsault

On November 16, 2009, Avanti announced a NI 43-101 compliant Pre-Feasibility Study for the Kitsault Project. The study includes a mine plan which calls for a total of 215.3 million tonnes of proven and probable reserves grading 0.085% molybdenum to be mined over a 15 – year mine life, producing 368 million pounds of molybdenum. The discounted net present value of the project represents value of over $2.25 per issued share of Avanti.

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Avanti Mining Selected as Part of Caesar’s “Mining Top 25 for 2010″

As we begin 2010, we are pleased to announce that Avanti Mining (TSX-V: AVT) has been selected for inclusion in Caesar’s Mining Top 25 for 2010, ranking No. 23 on the list.  The report highlights a number of positive attributes for the Company which we have been highlighing over the last year, including the following:

• Proven management (including the founder of Silver Wheaton, a director at New Gold, and former COO of Thompson Creek Metals)
• Feasibility Study in place with good economics
• Reserves for a 15-year mine life
• Convertiong $20M of debt into equity

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2009 Best Year for Commodities Since 1973

SINGAPORE (Reuters) - Commodity markets are on course for their strongest year since 1973, lifted by oil’s biggest annual gains in a decade and a 140 percent surge in copper prices.

With the Reuters/Jefferies CRB index .CRB on track for a 24 percent rally in 2009, gold heading for its ninth increase in as many years, sugar near record highs and cocoa headed for its fourth annual rise, traders are describing 2009 as “the year of commodities”.

Avanti Raises $2.6 Million Via the Exercise of Warrants

In a press release, Avanti Mining Inc. (TSX-V: AVT) announced that Resource Capital Fund has voluntarily exercised 12,221,019 warrants that do not expire until November 5, 2013 at an exercise price of $0.216 for proceeds to Avanti of $2,639,740. Use of proceeds will be for permitting applications and general corporate purposes.

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Avanti Mining Files Final Preliminary Feasibility Study for Kitsault Molybdenum Property

In  a press release, Avanti Mining (TSX-V: AVT) announced that Wardrop has issued its final NI 43-101 Pre-feasibility Study Report for the Company’s Kitsault Molybdenum property, as previously announced on November 16, 2009. The complete report has been filed on SEDAR and is also available on Avanti’s web site, www.avantimining.com.

As previously reported, highlights from the study include:

• The mine plan calls for a total of 215.3 million tonnes of proven and probable reserves grading 0.085% molybdenum to be mined over a 15-year mine life, producing 368 million pounds of molybdenum.  The first five years of production averages 0.10% Mo;
• Initial capital costs are estimated at $641 million;
• Cash operating costs are estimated to be $4.43/lb of accountable molybdenum (recovered molybdenum less 1% deductions);
• The average life of mine (LOM) price of molybdenum for base case scenario is computed by using the CPM Group projections and it is $15.88/lb.;
• The base case after-tax NPV(8%) is $551 million, with an IRR of 20.6%;
• Projected undiscounted net cash flow (after-tax) is $1.56 billion;
• Annual metal production for the mine life averages 24.5 million pounds of molybdenum with the first five years averaging 29.2 million pounds per year;
• The mine has certain infrastructure in place with road and ocean freight access to the mine site and will be serviced by the BC Hydro transmission grid;
• Develop a Run-of-River Hydro-electric project, by taking advantage of the site water diversion design in managing runoff from the average 2 meters of precipitation;
• The Hydroelectric project may represent a long lived project asset with implications for project reclamation financing;
• The reopening of the mine is projected to create over 330 jobs in addition to 250 construction jobs over that 3 year period; and
• The mines existing M-10 permit can be amended under the BC Mines Act process or a voluntary BC Environmental Assessment Act “opt-in” process.

Avanti Mining Appoints Kenneth Collison, Former COO of Thompson Creek, to Management

In a press release this morning, Avanti Mining Inc. (TSX-V: AVT) announced the appointment of Kenneth W. Collison, as Senior Vice President – Project Development.

Mr. Collison has over 30 years of experience in the mining industry, most recently as Chief Operating Officer of Thompson Creek Metals which included the responsibility for the operations of the Endako and Thompson Creek molybdenum mines as well as the Feasibility study for the Davidson project. He was part of the management group that purchased Thompson Creek in 2006. From 2001 to 2004 Mr. Collison worked for the State of Alaska managing construction of sewer and water systems for rural Alaska with extensive dealings with rural populations including first nation communities. In addition, he has held various high ranking positions with Coeur d’Alene Mines and Rio Algom Limited. Mr. Collison has served as a director of the Mining Associations of Canada and BC as well as president and director of the Nova Scotia Chamber of Mineral Resources. His community service earned him the “Citizen of the Year” award from the Yarmouth, NS Chamber of Commerce.

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