Avanti Purchases The Kitsault Molybdenum Mine

GREENWOOD VILLAGE, CO - Avanti Mining Inc. reported that it has completed the purchase of an undivided, 100% direct interest in the Kitsault molybdenum mine and surrounding mineral tenures, located in northern British Columbia, from Aluminerie Lauralco, Inc. ("ALI"), a wholly owned subsidiary of Alcoa, Inc. The purchase price is US$20 million.
Craig J. Nelsen, Avanti's President and CEO, states, "with our due diligence work behind us, we are now ready to begin developing this world-class asset. During the last several months, we have had a drill program underway, with 5,700 meters drilled to date, which will confirm the historical resource and reserve information published in our NI 43-101 Report. Our next milestone on this project will be the issuance of the Preliminary Economic Assessment within the next several weeks."
A NI 43-101 compliant resource estimate was issued for the minein August. At a 0.04% Mo cut-off grade, this estimate contains an Indicated resource of 158 million tonnes grading 0.10% Mo, containing 348 million pounds of molybdenum, and an additional Inferred resource of 133 million tonnes, grading 0.08% Mo, containing 235 million pounds of molybdenum. The cut-off grades are based on metal price assumptions of US$20.00/lb of molybdenum and a metallurgical recovery of eighty-nine percent for molybdenum. The Kitsault mine has previously produced during two periods, from 1967 to 1972, and from 1981 to 1982. Total production on the property during both periods was approximately 30 million pounds of molybdenum.
The company's address is Suite 405, 5251 DTC Parkway, Greenwood Village, CO 80111, 303-565-5491, fax: 303-565-5496.