Looks very promising!!
Highlights of the project include: •Initial capital costs including working capital have been revised and are estimated at $812 million and the life of mine (LOM) sustaining capital at $132 million (+/- 15% accuracy). This represents a reduction of $126 million for initial capital and an overall reduction to total capital of $67 million over the LOM. •Cash operating cost at the mine site are estimated at $6.58 per pound of molybdenum (Mo) produced. It drops to $5.60 (US$ 5.21), when a Silver by-product credit of $0.98 per pound of Mo is realized. Total cash cost including transportation and smelter charges would be $7.07 (US$ 6.57) per pound of Mo. •The new mine plan based upon the resource model developed in 2012 calls for a total of 226 million tonnes of proven and probable reserves grading 0.083% Mo and 5.3 g/t silver to be mined over a 14-year mine life, producing 367 million pounds of Mo and 15.3 million ounces of silver. The Mo grade to the mill over the first five years of production averages 0.101% Mo; •At a long term price Mo price of US$14.50/lb, (long term price projections are supported by CPM July 2013 commodity report), the project has an after tax Net Present Value (NPV) at an 8% discount rate of $417 million and a 17.3% IRR. Sensitivity analysis to Mo prices is provided in this report. •The mine has certain infrastructure in place with road access and will be serviced by the existing BC Hydro transmission grid; •The reopening of the mine is projected to create over 300 high paying local jobs during its 14-year life, and at the peak of construction, over 700 jobs. The construction period is estimated at 25 months; •The Project received the BC Environmental Assessment Certificate in March 2013 and subsequently applied for the British Columbia permits for construction in April 2013. The permitting process is well advanced and the permits are expected by the end of this year. The Kitsault Project underwent a comprehensive study as required by the Comprehensive Studies Regulation of the Canadian Environmental Assessment Act (CEAA), with key triggers being the requirement for a Fisheries Act permit and explosives permit under the Explosives Act. The federal review of Avanti's Environmental Impact Statement (EIS) was completed on September 22, 2013. The federal Minister of Environment will render a decision on the EIS before the end of 2013.