RE:RE:Stewart BC is near AVTI do feel and share in the frustration of Shortshot and others (eg., Grrrr). AVT for all intents and purposes should be trading at a much higher value than it is....can't help but feel that things are jinxed. However, I'm not giving up. There's only a handful of up and comers, and AVT is on the list along with Seabridge, Pretium, Red Chris, Mount Milligan. Just can't figure why it's not getting the same exposure. When you look at proven and probable resources, this baby should be rocking.
It's frustrating now. It only ran up to .14 when three or big stories were released at one time. I assumed that run up would be between .36 and .40. Less than half of what it achieved. Any Moly mine with one tenth the reserves (dvt) ran up to close to $5, only to close down because of what they said was a poor market price on Moly at the time. Now, I'm not suggesting dvt was fairly priced. But if it were, that would put AVT in the $15/share range...dream on ...won't happen...but really what is holding this company back....all the ingredients for success are there, but it still isn't banging.
Kitsault Molybdenum Mine
The Kitsault property is located about 140 km north of Prince Rupert and south of the head of Alice Arm, an inlet of the Pacific Ocean. The property includes three known molybdenum deposits: Kitsault, Bell Moly, and Roundy Creek. This past producing mine's key project components include the expansion of the open pit mine, an ore processing plant, tailings impoundment area, an explosives manufacturing facility, other ancillary infrastructure and a possible 9.8 MW run-of-river hydroelectric project.
About This Project
Avanti Mining Corp. (TSX-V: AVT) bought the past-producing Kitsault molybdenum mine in 2008 and has spent the last five years focused on transforming the brown-field site into a new mine. The Kitsault mine produced approximately 31 million pounds of molybdenum between 1967 and 1972 and 1981 and 1982.
The project is located 140 kilometres north of Prince Rupert on British Columbia’s northwest coast. Road and B.C. Hydro power infrastructure serve the mine site.
If Kitsault is re-opened, it is expected to generate more than 700 jobs during construction and 300 permanent jobs during its 14-year mine life. The capital cost of the project is approximately $812 million which the company plans to finance through debt and equity.
The project received its B.C. Environmental Assessment Certificate (EAC) in March 2013, and has since applied for permits to begin construction. A federal environment review of the project was completed in September 2013, and the federal minister is expected to render a decision on the review before the end of 2013.
Avanti and the Gitanyow Hereditary Chiefs have signed a Letter of Understanding which commits the parties to negotiate a Cooperation Agreement that will address the development of a Highway 37 Trust, business and employment opportunities and training, and cooperation on environmental, social and cultural protection. The Nisga’a Nation alternatively has invoked a dispute resolution on the proposed molybdenum mine, but Avanti is committed to working with the Nisga’a in implementing the conditions of the EAC and realizing the benefits of the project.
In 2013, Avanti’s updated feasibility study estimated that the new Kitsault mine would operate at an annual throughput rate of 45,500 tonnes per day for 14 years. The project contains some 226 million tonnes of proven and probable reserves which the company said would produce 367 million pounds of molybdenum and 15.3 million ounces of silver using a conventional truck and shovel open pit method during its 14-year mine life. Total molybdenum recovery would vary depending on the mill head grade, but it is estimated to average 89% over the life of the mine. The company also plans to recover additional silver concentrate through de-sulfidization of tailings.
The company has entered into an offtake agreement with ThyssenKrupp group based in Essen, Germany for 50% of its total molybdenum production for the life of the mine.
Cash operating cost at the mine site are estimated at $6.58 per pound of molybdenum produced. It drops to $5.60 (US$ 5.21), when a Silver by-product credit of $0.98 per pound of molybdenum is realized. Total cash cost including transportation and smelter charges would be $7.07 (US$ 6.57) per pound of molybdenum.
Construction is expected to begin in the third quarter of 2015, with production to follow in 2017.
Avanti is traded on the Toronto Venture Stock Exchange under the symbol AVT.