Avanti Mining Inc. Updates Kitsault Resource Statement and By-Product Silver Metallurgical Results
VANCOUVER, BC -- (Marketwire) -- 04/30/12 -- Avanti Mining Inc. (TSX VENTURE: AVT) (PINKSHEETS: AVNMF) ("Avanti" or the "Company") is pleased to announce an update of the Kitsault Molybdenum Project Mineral Resource Statement. When compared to our Feasibility Study (2010) model, this resource update resulted in a tonnage increase of 95% in the measured category, or approximately 9.8 years at our anticipated production rate. There was an overall increase in tonnage of 7.7% and 7.0% in contained molybdenum within the Measured and Indicated categories. Most significantly, silver grades increased 13.8% over the 2010 estimate for an overall increase of 22.8% of silver metal in the Measured and Indicated categories.
This update has been completed by AMEC Americas Limited (AMEC) and is based upon an additional 35 drill holes from the 2011 drill program. The mineral resources reported below have been estimated using criteria consistent with the CIM Definitions Standards (2010) and in conformity with CIM "Estimation of Mineral Resources and Mineral Reserves Best Practice (2003)" guidelines.
Table 1: Kitsault- Mineral Resource Estimate
(David Thomas P. Geo., Effective Date 17 April 2012)
--------------------------------------------------------------------
Tonnage Mo Mo Pb Ag Ag
Category (Mt) % (Mlb) (ppm) (ppm) (Moz)
====================================================================
Measured 142.7 0.087 272.6 243 5.0 22.8
Indicated 179.1 0.059 233.0 231 4.3 26.7
--------------------------------------------------------------------
Measured + Indicated 321.8 0.071 505.5 236 4.8 49.5
--------------------------------------------------------------------
Inferred 317.6 0.041 286.3 237 4.6 47.3
--------------------------------------------------------------------
Notes:
1. Mineral Resources are inclusive of Mineral Reserves
2. Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability
3. Mineral Resources are defined with a Lerchs-Grossmann pit shell, and
reported at a 0.018% Mo cut-off grade.
4. Mineral Resources are reported using a commodity price of CDN$17.39/lb
Mo, an average process recovery 89%, a process cost of CDN$5.83/t and
selling cost of CDN$1.24 /lb of Mo sold. No revenue was assumed for Ag
5. Tonnages are rounded to the nearest 1,000 tonnes; grades are rounded to
three decimal places for Mo and one decimals for Ag
6. Rounding as required by reporting guidelines may result in apparent
summation differences between tonnes, grade and contained metal content
7. Tonnage and grade measurements are in metric units; contained molybdenum
is in imperial pounds.
8. There is potential for a 30% to 40% recovery of the silver reporting to
a saleable concentrate. A report by Rdi dated March 5, 2012 supports
this estimate. However, although there may be a reasonable prospect to
extract this silver resource there is insufficient work to define the
level of benefit that would support inclusion of silver in a reserve
estimate at this time. No dedicated silver recovery circuit has been
included in the process design, but there are reasonable expectations
that this can be added in the future.
A comparison of the new 2012 mineral resource with the previous 2010 mineral resource shows generally minor changes in tonnage, grade and contained metal. The percentage relative differences for each mineral resource category between the current model and the previous model are shown below in Table 2. The increase in the tonnage of Measured mineral resources is attributed to a change in classification based upon isotropic distances with no consideration of domain boundaries. New drilling information resulted in local changes in estimated tonnage and grade, therefore combined Measured and Indicated resource tonnage (7.7% increase) and contained molybdenum metal (7.0% increase) remain similar to the previous model.
The depth extent of the pit shell constraining the mineral resource increased, therefore Inferred mineral resource tonnage increased substantially. The change in the pit shell can be attributed to an increase in the long-term moly price assumption and removal of an incremental mining cost per bench applied in the 2010 resource model.
Silver grades and metal content increased significantly in combined Measured and Indicated mineral resources due to modelling silver grades independently of molybdenum consistent with geologic observations that these two mineralizing events are independent of one another.
Table 2: % Relative Differences Between 2012 and 2010 Mineral Resource
Estimates
----------------------------------------------------------------------------
Tonnes Mo Grade Mo Metal Ag Grade Ag Metal
Category (Mt) (%) Mlbs (g/t) (Moz)
============================================================================
Measured 95.5% -6.5% 81.4% 15.9% 128.0%
Indicated -20.7% -9.2% -27.7% 11.0% -11.9%
Measured and Indicated 7.7% -1.4% 7.0% 13.8% 22.8%
Inferred 102.2% -18.0% 66.3% 26.8% 157.3%
----------------------------------------------------------------------------
BY-PRODUCT SILVER METALLURGICAL RESULTS
Resource Development Inc. (RDi) of Wheatridge, CO completed metallurgical testing of the tailings during molybdenum recovery locked cycle tests confirming that de-sulfidization could be accomplished. The quantity of sulfides generated in this testwork was used to complete metallurgical testing for by-product Ag recovery. A final report describing the results was submitted on March 5, 2012. This report describes how minor modifications of the planned sulfide recovery circuit in our Feasibility Study together with the incorporation of a cleaning circuit would produce a Pb-Ag concentrate estimated to contain 13% Pb and 2,000 g/t Ag. This report which was provided by RDi, estimates potential Ag recoveries ranging from 30% to 40% producing between 625,000 to 825,000 oz. of Ag per year contained in concentrate. RDi also felt that there would be an opportunity for another 10% improvement in silver recovery from reagent and operational optimization. Subsequent to this work, RDi completed testing to produce additional Pb-Ag concentrate for complete whole rock and multi-element analysis. This data will be utilized to receive smelter quotes for the processing cost of the Pb-Ag concentrate determining its economic value. Efforts are underway to monetize this Ag stream. Tony Lipiec, P.Eng, is a Qualified Person under NI 43-101 and has reviewed and approved the technical and scientific information disclosed in this section related to metallurgical issues.
"The results released today continue to de-risk the project and confirm a very robust ore body at Kitsault and show promise of producing by-product silver that is not currently considered in the projects economics," Mr. Craig J. Nelsen, President and CEO stated. "We are presently evaluating the impacts of the new resource model on our Reserve Statement but an initial examination suggest it is very small. Based upon positive silver recovery tests, we are presently exploring the sale of a silver stream or forward to help provide us capital to satisfy Avanti's share of equity required to construct the mine."
Avanti Mining Inc. is focused on the development of the past producing Kitsault Mine Project located north of Prince Rupert in British Columbia. In late 2010, Avanti completed the Kitsault Feasibility Study on the Kitsault Mine Project, dated December 15, 2010, prepared by AMEC Americas Limited that showed Proven and Probable Reserves of 232.5 million tonnes averaging 0.081% molybdenum. David G. Thomas, P. Geo and a Qualified Persons as defined by NI 43-101, is responsible for the technical information relating to the new resource model in this press release. A copy of the resource report is available on the Avanti website below.
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, statements about matters related to the classification of mineral resources and development of the Kitsault molybdenum mine, the impact of the new resource model on reserves and the recovery of by-product silver from tailings at its operations. 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 Annual Information Form for the year ended December 31, 2010, which is available at www.sedar.com. The Corporation is under no obligation to update forward-looking statements if circumstances or management's opinions should change, excepting as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
For further information, please visit www.avantimining.com, or contact:
Craig J. Nelsen
Chief Executive Officer
303-565-5491, extension 4471
A.J. Ali
Chief Financial Officer
303-565-5491, extension 4472