NEW YORK Avanti Mining Inc. has updated the feasibility study for its Kitsault molybdenum mine and now estimates that the project will produce 374 million pounds of molybdenum over 16 years.
The Vancouver, British Columbia-based company estimated that the Kitsault mine would operate at an annual mill throughput rate of 14.6 million tonnes of molybdenum concentrate. In addition to the estimated production of 374 million pounds of molybdenum, the site is also forecast to produce 14.4 million ounces of silver.
Avanti had previously said Kitsault would be capable of producing 368 million tonnes over 15 years (amm.com, Jan. 8, 2010
The project is moving through the environmental assessment process, with the company set to submit the referral report to the British Columbia Ministries of Environment and Energy, Mines and Natural Gas by mid-February.
Once the project is approved, construction will take an estimated 25 months.
The company said that it has signed a letter of intent to supply a major German steelmaker with 50 percent of Kitsaults production for the life of the mine.
Initial capital costs are estimated at Canadian $938 million ($941.5 million), up 12 percent from the $837 million reported in the previous feasibility study.