VANCOUVER, Aug. 31 /CNW/ - Avanti Mining Inc. (TSX-V: AVT) ("Avanti" or the "Company") There was a typographical error in the press release dated August 31, 2010 in which the historical resource at the Bell Moly deposit of 96.4 million tonnes was stated to have a grade of 0.54% instead of 0.054%. The corrected press release is as follows:
Avanti reported a net loss of $2.6 million ($0.01 per share) for the six months ended June 30, 2010 compared to a net loss of $2.8 million ($0.03 per share) for the comparable period in 2009. In addition the Company deferred $3.9 million (2009 - $2.5 million) relating to the development costs of the Kitsault property. The Company had a cash balance of $13.4 million on hand as at June 30, 2010.
- The final feasibility being prepared by AMEC is on schedule for
completion by end of October 2010 and will incorporate the US$50 to
US$70 million reduction in the initial capital expenditures in the
tailing facility as well as other expected improvements from the pre-
feasibility study of 2009.
- Approximately 90% of the core from old drilling at the Bell Moly
deposit has been recovered and is being re logged and re assayed.
This deposit has historical unclassified resource of 96.4 million
tonnes grading 0.054% molybdenum.(1)
- Several of the drill hole collars at the Roundy Creek deposit have
been located and the Company plans a confirmatory drill program this
year to twin some of these holes.
(1) Note: Historic resource estimates do not comply with the CIM
terminology under Canadian Securities Administrators NI 43-101
guidelines. The reader is cautioned that these estimates are not
mineral reserves and should not be relied upon.
- The Canadian Environmental Assessment Agency ("CEAA") has accepted
effective August 18, 2010 the addendum to the Kitsault Project
Description filed with the British Columbia Environmental Office
("BCEAO"). This acceptance will result in a Notice of Commencement
(NoC) to be issued by CEAA within 90 days of August 18, 2010.
- BCEAO has circulated a draft section 11 order under the Environmental
Assessment Act for comment by all interested parties.
- The draft Application Information Requirement ("dAIR") document will
be filed with the BCEAO shortly.
- The Company's financing strategy includes a potential sale of a
minority interest in the Kitsault project to raise its share of
equity portion of the capital funding required to rebuild the mine.
This strategy, if successful, will be less dilutive to the
shareholders than raising the required equity through the public
equity markets. The Company is in discussions with potential
- The Company expects to negotiate off-take agreements for future
molybdenum production with price protection mechanisms to support the
debt component of the capital required. This is being done in
conjunction with its debt advisor who has arranged meetings with some
of its molybdenum consuming steel clients.
Avanti is focused on the development of the past producing Kitsault molybdenum mine located north of Prince Rupert in British Columbia. Kitsault has Proven and Probable reserves of 215 million tonnes grading 0.085% Mo and containing 368 million pounds of recoverable molybdenum as outlined in the Technical Report dated December 15, 2009 which is available on the Company's website as well as at www.sedar.com. Mr. Kenneth Collison, Senior Vice President of Project Development for the Company and a Qualified Person as defined in NI 43-101, has reviewed and approved the scientific or technical information in this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: This news release contains certain forward-looking information concerning the business of Avanti Mining Inc. (the "Corporation"). All statements, other than statements of historical fact, included herein including, without limitation; statements about possible appeals, the recoverability of molybdenum at the Kitsault property and other matters related to the development of the Kitsault molybdenum mine, are forward-looking statements. These forward-looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in the Corporation's Prospectus filed on February 16 2010 and Annual Information Form for the year ended January 31, 2009, which are available at www. Sedar.com. The Corporation is under no obligation to update forward-looking statements if circumstances or management's opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
SOURCE AVANTI MINING INC.
For further information: For further information: please visit www.avantimining.com, or contact: Craig J. Nelsen, Chief Executive Officer, 303-565-5491, extension 4471, or A.J. Ali, Chief Financial Officer, 303-565-5491, extension 4472