A little more info for new investors.
37
The molybdenum mine and mineral tenures on the mountain above the community of Kitsault, inactive since 1982, were sold in 2008 for $20 million plus concessions to Avanti Mining Inc by Aluminerie Lauralco Inc., a subsidiary of the American aluminum giant, ALCOA Inc. With the resurgence of molybdenum prices, this mine may open again. Avanti Kitsault Mining Ltd. (the Canadian subsidiary of the firm, Avanti Mining Inc.) is at the environmental assessment stage of development. Avanti is proposing an $800 million open pit mine project, with a minimum lifespan of 15 years. Located in the Lime Creek watershed, this mine, at full production, is projected to become one of the top 5 producers of molybdenum in the world. It is projected to produce an estimated 368 million pounds or $1.6 billion in molybdenum over its lifespan. In addition, the polymetallic veins associated with the molybdenum deposit contain significant reserves of silver, lead, zinc and possibly gold. In consideration of the high metal prices in 2011, these reserves could greatly increase profitability of the mine.
With infrastructure already in place, including access to ocean shipping, a road to the Nass Valley, and a power transmission line, the logistics of restarting the molybdenum mine have been simplified. The ore from the Kitsault mine is proposed to be shipped out by truck to Terrace and on to the port in Vancouver. Avanti estimates that 650 jobs will be created during construction of the Kitsault mine, with 330 permanent jobs being generated once the mine is running. The mine will be self-contained, with workers living in a camp close to the mine site. The dammed upper reaches of Patsy Creek (east branch of Lime Creek), including Patsy Lake, are proposed to be used for the tailings pond.
Two other potential molybdenum deposits owned by Avanti are in close proximity to the Kitsault prospect - the Bell Moly deposit to the NE and the Roundy Creek deposit to the SW of the existing open pit mine. In late 2010, Avanti purchased 99 other contiguous mineral tenures, formerly owned by TA Mineral Resources Ltd., extending its holdings by 300% to include much of the S side of Alice Arm, along the height of land on the east side of Observatory Inlet as far south as Kelskiist Creek, and east of Kitsault almost to the Nass Valley. Exploration and evaluation of further molybdenum reserves are being made within Avanti's mining tenures, with the projection that the Kitsault mining activities will extend well beyond the 15 year time frame projected for the Mt. Widdzech deposits.