Sunday, January 10, 2010

Kitsault molybdenum mining project may get start in 2013





Avanti Mining which has been conducting a number of studies on molybdenum reserves in the Kitsault area, has found that their numbers are promising and are apparently set to commence with their mining operations in the third quarter of 2013.

A number of mining related newsletters and metal industry publications have been following the Avanti tests over the last few months, that after a pre-feasibility study conducted by Avanti determined that there could be at least fifteen years worth of production out of the Kitsault location (about 140 kilometres northeast of Prince Rupert) which would provide for some 368 million pounds of molybdenum to be mined during the course of the production schedule.

The project boasts of reserves that are considered to provide Kitsault with one of the top five primary Molybdenum development assets worldwide. With the prospect that even more reserves of the metal could be found as development continues forward.

Avanti plans to take advantage of the existing infrastructure, which consists of an electricity grid and ocean and road access. As well as explore the prospect of a run of river hydro project in conjunction with the mine's operation.

It's reported that Avanti has been busy working out debt financing arrangements for mine construction, begining their marketing efforts to target agreements with end users of molybdenum as well as conducting a search for strategic investors. They have also been keeping contact with local communities and governments, including First Nations, so that input from local stakeholders can be included in the process.

The late 2013 start up date, is a forward step from the previously anticipated start up time frame of 2014, a move which will provide for 250 construction jobs and up 330 jobs on site and perhaps create spin off purchasing and supply services from area suppliers in Terrace and Prince Rupert.

Before we see any major activity in the region however there will still be negotiations required in the region and environmental assessments to be done regarding tailings disposal.

A full review of their plans for the Kitsault project can be found on the company website.

Resource Investing News-- Avanti - Production at Kitsault by 2013

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