AVANTI MINING INC. Kitsault Mine Project: Nisga a Community Presentation. April 2011

Transcription

1 AVANTI MINING INC. Kitsault Mine Project: Nisga a Community Presentation April 2011

2 Management of Avanti Craig J Nelsen President & CEO 30 years exploration and development experience Previously with Gold Fields, Metallica Resources and Lac Minerals Director of New Gold A J Ali CFO 35 years mining financial experience Previously with Denison Mines, Vista Gold, EuroZinc and Centenario Copper Kenneth W. Collison SVP Project Development Bob Jacko Feasibility Project Manager Former COO of Thompson Creek Mining 30 years experience in operations and project development with Rio Algom Ltd. and Coeur d Alene Mines Former Vice President Projects of Thompson Creek Metals Endako and Mt. Emmons studies Over 20 years with Teck and Teck Cominco Northern Operations Robert Blair VP Exploration 40 years Exploration and Development experience Previously with Cyprus - Amax, Climax, Getty Minerals and Coeur d Alene 2

3 Environmental Assessment Team Craig J Nelsen President & CEO 30 years exploration and development experience Previously with Gold Fields, Metallica Resources and Lac Minerals Director of New Gold Shane Uren Greenwood Environmental Greg Smyth Knight Piésold Tim Bekhuys AMEC Earth & Environmental Stephen Day SRK Registered Professional Biologist 10 plus years of environmental assessment experience Owners representative and main regulator contact Project Manager for Tailings and Water Management Design and EA sections: Hydrology, Hydrogeology, Terrain Hazards and Mass Balance WQ Model 15 years experience in mine design & operations, permitting and environmental assessment Senior Associate with over 25 years experience in environmental assessment Professional Biologist (BC and Alberta) Environmental Assessment Project Manager Professional Geoscientist (APEGBC) 23 years of experience in exploration and environmental geochemistry SRK North America Principal 3

4 EA Participants Environmental Assessment ) Lead Engineer and EA EA Working Group Treaty Consultation Indigenuity Consulting Group Incorporated Debt Advisor/ Arranger Lenders Independent Engineer TMF Design Water Balance Water Management Reclamation ARD Assessment Pit Geotechnical Strategic Planning First Nations Consultation 4

5 Kitsault History Kitsault discovered in 1916 Produced for two periods & Produced 30 mm lbs of Mo from 13.4 mm tonnes milled 5

6 Key Project Highlights One of the top five primary Molybdenum assets in the world Brownfield Site Existing Infrastructure Proven Resource Discussions with Nisga a Nation 2008 Two Decades of Environmental Data Effective Development Plan 6

7 Kitsault Mine Current view 7

8 Kitsault Video Future Rendering

9 Nisga a Neighbors One of Canada s few modern-day First Nation Treaties Communication Protocol Signed December 2008 The Nisga a Treaty clearly demarcates the land and mineral title ownership Kitsault creates high paying jobs, providing economic benefit to the local communities 9

10 Location of Kitsault Mine Stewart Ketchikan Smithers Shortest Ocean route to Asia Prince Rupert Terrace 10

11 Mineral Claims and Leases X Hoan North X Hoan South X Nimble 11

12 Alternatives Assessment Tailings 12

13 Project Overview Reserves: million tonnes grading 0.081% Mo 15 to 16 year mine life Milling Rate: 40,000 to 50,000 tonnes per day First five years of mining: 0.101% molybdenum 374 million pounds of molybdenum Ore processing on site Between 80 and 100 tonnes of concentrate per day two to three 40 tonne concentrate trucks per day direct to Vancouver Low waste to ore ratio; 0.77:1 Land based tailings management One waste rock management facility between the TMF and the Pit Use of existing roads and powerline under 8 km of new road 13

14 Site Arrangement 14

15 3-D View at Completion of Mining 15

16 TMF Safety and Stability Earthquake Return Period Events Older Buildings = 500 years Newer Buildings = 2500 years Kitsault TMF = 10,000 years 16

17 TMF Surface and Groundwater Flow Surface & Groundwater will naturally flow towards Open Pit and Lime Creek, following existing drainages 17

18 Staff Accommodations Kitsault Township not available for Project Facility must accommodate: Construction phase: 700 personnel Operation phase: 300 personnel Approximately 50% of total workforce will utilize at any one time Dormitory style with cafeteria and recreation centre Built in units can be expanded/downsized as required 18

19 Water Management Plan Main objective of WMP to control all water that originates from within Project area in environmentally responsible manner by: Optimising use of available water sources Managing excess water Water management activities will include: Controlling, collecting, and utilizing seepage and undiverted surface runoff Diverting upstream catchment from site facilities Optimising volume of water stored in TMF supernatant pond Storm water management and sediment/erosion control measures 19

20 Waste Rock Management Facility Waste rock: ~ 178 million tonnes Used in construction of TMF embankments Placed in East WRMF Opportunity to convert ~35 million tonnes to ore 20

21 Concentrate Transportation 21

22 Employment Opportunities - Construction 700 Construction Jobs at Peak Heavy Equipment Operators Mechanics Millwrights Electricians Control Technicians Administrative Personnel Service And Maintenance Personnel Environmental Technicians And Compliance Emergency Medical Specialists 22

23 Employment Opportunities - Operations Approximately 300 Operation Jobs Plant Operators Line Superintendents Mine Truck Drivers Mine Shovel Operators Engineering And Technical Specialists Administration Personnel Service And Maintenance Specialists Environmental And Health Services Specialists 23

24 Closure and Reclamation Full submersion, or partial submersion and soil covering over exposed areas Construction of spillway Dismantling and removal of structures and equipment, including seepage management system Removal and re-grading of access roads, pipelines, ponds, ditches, and borrow areas Long-term stabilization of all exposed erodible materials and revegetation of rehabilitated surfaces Groundwater monitoring wells and geotechnical instrumentation retained Post-closure requirements: annual inspections and confirmation of design assumptions adopted for closure Allowed to fill with water Patsy Creek diversion decommissioned and redirected into Pit Discharge towards Lime Creek through spillway at low point of Pit Buildings and structures removed, and dismantled or demolished Disturbed areas re-graded, capped with growth material, and fertilized and seeded Mine site roads scarified and seeded and stream crossings returned to pre-mining condition Site landfill closed 24

25 3-D View at Closure 25

26 Key Environmental Considerations Avoidance of fish bearing waters and lakes Use of existing roads, mine and infrastructure to avoid new impacts Baseline data collection long history Opportunities to further remediate historic impacts Compact Project footprint 26

27 Estimated Project Timeline Environmental Baseline from 2009 Feasibility Study EA Process EA App EA Cert Permitting Construction Start-Up 27

28 Summary Dedicated Management and proven Board of Directors Brownfield site (~15 years of data) High-quality, world class deposit Commitment to Nisga a business opportunities Existing infrastructure Access road Powerline Proven metallurgy Compact Project footprint Predominantly within the Patsy Creek watershed Viable proven reclamation options 28

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