BRITISH COLUMBIA – Avanti Mining of Vancouver has updated the feasibility study for its Kitsault moly property 140 km northeast of Prince Rupert to include a new open pit mine plan based on 2012's resource model. The Kitsault property has three known molybdenum deposits, and was a producer in 1967-72 and 1981-82 during which time output totalled 31 million lb of moly.
The updated study is based on proven and probable reserves of 228.2 million tonnes grading 0.083% Mo (415.5 million lb) and 5.0 g/t Ag (36.6 million oz). Initial capital costs including working capital are estimated at $936 million, and sustaining capital will be $106 million. The costs cover an open pit mine and 40,000 t/d mill (SAG-ball milling, followed by conventional flotation and five stages of cleaning) that would operate for at least 16 years.
Avanti says that at a long term moly price of US$14.50/lb, the Kitsault project has an after tax net present value with an 8% discount of $433 million and a 16.6% internal rate of return. Total cash cost including milling and transportation will be $6.73 (US$626) per pound of molybdenum.
The Kitsault project is progressing through the environmental assessment process under the Nisga'a final agreement as well as provincial and federal legislation.
Cost and other details are available at AvantiMining.com.