SOURCE: Avanti Mining Inc

Avanti Mining Inc

November 16, 2011 08:30 ET

Avanti Intersects 85.4 Meters Averaging 0.378% Molybdenum at Roundy Creek Prospect on the Kitsault Mine Property

VANCOUVER, BC--(Marketwire - Nov 16, 2011) - Avanti Mining Inc. (TSX-V: AVT) (PINKSHEETS: AVMNF) ("Avanti" or the "Company") is pleased to announce that it has received assays from the next 12 holes of its 2011 drill program at the Kitsault Mine molybdenum project located in northwest British Colombia. This release includes the results for five holes drilled south of Patsy Creek at the Kitsault Mine and seven holes drilled at the Roundy Creek prospect located about 4 km west of the Kitsault Mine on Avanti's land holdings. The Company is awaiting the results for the remaining seven holes at Kitsault and five holes at Roundy Creek that should be completed and released by the end of November.

Drill highlights include:

Roundy Creek Results:

  • Hole RC11-14 intersected 147.8 meters averaging 0.104% molybdenum and 2.2 g/t silver
  • Hole RC11-15 intersected 138 meters averaging 0.068% molybdenum and 1.8 g/t silver
  • Hole RC11-16 intersected 96 meters averaging 0.187% molybdenum and 1.4 g/t silver that included 39 meters averaging 0.395% molybdenum and 1.1 g/t silver
  • Hole RC11-17 intersected 48.8 meters averaging 0.091% molybdenum and 1.0 g/t silver but had to be abandoned because of ground conditions just as it encountered higher grade material. The azimuth was changed by 5 degrees and the hole redrilled as RC11-17A described below.
  • Hole RC11-17A intersected 85.4 meters averaging 0.378% molybdenum and 27.8 g/t silver that included 40.4 meters at 0.731% molybdenum and 55.6 g/t silver within which was 9 meters averaging 2.25% molybdenum. This is a new zone of high grade mineralization not detected by previous drilling.
  • Hole RC11-18 intersected 109.8 meters averaging 0.100% molybdenum and 1.4 g/t silver
  • Hole RC11-19 intersected 69 meters averaging 0.058% molybdenum and 1.0 g/t silver

Kitsault Results - South of Patsy Creek

  • Hole K11-22 intersected four distinct zones including; 89.9 meters averaging 0.062% molybdenum and 5.2 g/t silver, 30 meters averaging 0.078% molybdenum and 6.3 g/t silver, 225 meters averaging 0.055% molybdenum and 12.6 g/t Ag and lastly, 140.5 meters averaging 0.078% molybdenum and 17.2 g/t silver. The hole bottomed in mineralization and except for approximately 57 meters of below cut-off material was mineralized for its entire 542.6 meter length.
  • Hole K11-25 intersected 188.4 meters averaging 0.059% molybdenum and 6.0 g/t silver and bottomed in mineralization.
  • Hole K11-27 intersected two zones but was drilled south of the deposit to explore untested ground in that direction. The two zones returned 24 meters averaging 0.032% molybdenum and 6.4 g/t silver and 21 meters averaging 0.031% molybdenum and 7.5 g/t silver.
  • Hole K11-29 intersected 149.4 meters averaging 0.059% molybdenum and 6.0 g/t silver and bottomed in mineralization.
  • Hole K11-36 intersected two distinct zones including; 174 meters averaging 0.071% molybdenum and 6.0 g/t silver and 261 meters averaging 0.079% molybdenum and 6.7 g/t silver and bottomed in mineralization. Except for a 18 meter section of below cut-off material, it was mineralized from 72 meters to its end at 524.3 meters.

"Roundy Creek continues to reveal high grade holes as we systematically advance toward the western high grade portions of the deposit," said Craig J. Nelsen, President & CEO of Avanti. "Hole RC11-17A defined another new zone of UST or brain rock that contains ultra high grades which is one of the intents of this drill program. The last hole of the season at Roundy Creek (RC11-24) encountered visual zones of massive sulfide molybdenum mineralization over several meters for which we anxiously await assays. Results presented in this release also include the first five holes drilled on the southern part of Kitsault, south of Patsy Creek that in the past has only had access by helicopter and as a result lacked drill density, and contains a significant amount of Inferred resource within our present reserve pit. These holes will help define the southern limits of mineralization and generally confirm and improve our existing interpretations in this area."

Unidirectional solidification texture (UST) is a primary magmatic texture found at the peripheries of certain felsic intrusions (e.g. Climax and Henderson where it has been referred to as brain rock). This feature usually manifests as bands of barren quartz alternating with parallel bands of quartz + feldspar, with crystal growth in the direction of the intrusion's centre. In rare instances, the quartz layers also contain base or precious metals. At Roundy Creek, this year's drilling has confirmed that the strongest mineralization is in UST quartz layers containing molybdenite. This feature results in variably continuous zones, several to tens of metres thick, of grades in excess of 1% Mo. The purpose of the 2011 drill program at Roundy Creek is twofold; first to reproduce and verify results from the historical database of 149 drill holes to allow the calculation of a new 43-101 resource, and second, to be able to define the geometries of UST zones encountered in the past in order to constrain their influence on this new resource. A previous example of this type of mineralization was encountered during our 2010 drill program (RC10-02 - drilled some 42 meters north of RC11-17A) that is repeated in the table below and is geologically very similar to the zone encountered in RC11-17A.

Drill Results

Maps showing the location of these drill holes relative to the previous drilling by all prior operators at Kitsault are available at www.avantimining.com or click the links below to view maps.

Kitsault Drill Hole Map: http://www.avantimining.com/i/pdf/KIT_ALL_DDH_11-20-11.pdf
Roundy Creek Drill Hole Map: http://www.avantimining.com/i/pdf/2011-09-19_NRM1.pdf

The detailed drill results for the holes summarized above are presented below:

2011 KITSAULT CALCULATED DRILL COMPOSITES
Hole Number EASTING/ AZIMUTH/ TD (m) From (m) To (m) Length (m) % Mo ppm Ag
NORTHING BEARING
K11-22 473,350E/ 0/ 542.6 6.2 96.0 89.9 0.062 5.2
inc (0.05 c/o) 6,141,450N -60 12.0 75.0 63.0 0.069 4.4
and
111.0 141.0 30.0 0.078 6.3
inc (0.05 c/o) 111.0 141.0 30.0 0.078 6.3
inc (0.1 c/o) 123.0 141.0 18.0 0.079 7.2
and
153.0 378.0 225.0 0.055 12.6
inc (0.05 c/o) 153.0 243.0 90.0 0.077 18.4
inc (0.1 c/o) 192.0 201.0 9.0 0.133 21.2
and
402.0 542.5 140.5 0.078 17.2
inc (0.05 c/o) 402.0 542.5 140.5 0.078 17.2
inc (0.1 c/o) 465.0 483.0 18.0 0.124 5.1
K11-25 473,000E/ 90/ 194.5 6.1 194.5 188.4 0.059 6.0
inc (0.05 c/o) 6,141,600N -45 9.0 159.0 150.0 0.061 6.4
and
inc (0.05 c/o) 177.0 192.0 15.0 0.073 4.3
K11-27 473,350E/ 180/ 149.4 51.0 75.0 24.0 0.032 6.4
and 6,141,450N -50
99.0 120.0 21.0 0.031 7.5
K11-29 473,400E/ 180/ 155.5 6.1 155.5 149.4 0.059 6.0
inc (0.05 c/o) 6,141,500N -75 33.0 129.0 96.0 0.067 3.9
inc (0.1 c/o) 81.0 96.0 15.0 0.105 6.2
K11-36 473,260E/ 0/ 524.3 72.0 246.0 174.0 0.071 6.7
inc (0.05 c/o) 6,141,510N -65 72.0 216.0 144.0 0.076 6.6
inc (0.1 c/o) 159.0 174.0 15.0 0.114 7.9
inc (0.05 c/o) 228.0 243.0 15.0 0.057 9.5
and
261.0 522.0 261.0 0.079 6.7
inc (0.05 c/o) 261.0 276.0 15.0 0.078 19.1
inc (0.05 c/o) 288.0 345.0 57.0 0.072 1.7
inc (0.1 c/o) 288.0 297.0 9.0 0.110 4.7
inc (0.05 c/o) 363.0 510.0 147.0 0.096 8.1
inc (0.1 c/o) 393.0 465.0 72.0 0.136 13.2
2011 ROUNDY CREEK CALCULATED DRILL COMPOSITES
Hole Number EASTING/ AZIMUTH/ TD (m) From (m) To (m) Length (m) % Mo ppm Ag
NORTHING BEARING
RC11-14 468,580E/ 0/ 175.3 2.2 150.0 147.8 0.104 2.2
inc (0.05 c/o) 6,142,208N -60 3.0 117.0 114.0 0.124 2.0
inc (0.1 c/o) 51.0 90.0 39.0 0.209 2.3
RC11-15 468,580E/ 0/ 172.1 12.0 150.0 138.0 0.068 1.8
inc (0.05 c/o) 6,142,180N -60 54.0 141.0 87.0 0.091 1.9
inc (0.1 c/o) 72.0 105.0 33.0 0.155 2.1
RC11-16 468,560E/ 0/ 165.8 33.0 129.0 96.0 0.187 1.3
inc (0.05 c/o) 6,142,182N -60 75.0 129.0 54.0 0.302 1.2
inc (0.1 c/o) 84.0 123.0 39.0 0.395 1.1
RC11-17 468,560E/ 0/ 55.8 7.0 55.8 48.8 0.091 1.0
inc (0.05 c/o) 6,142,211N -60 12.0 55.8 43.8 0.098 1.0
inc (0.1 c/o) 36.0 55.8 19.8 0.141 0.8
RC11-17A 468,560E/ 355/ 88.3 3.0 88.4 85.4 0.378 27.8
inc (0.05 c/o) 6,142,211N -60 15.0 88.4 73.4 0.434 32.0
inc (0.1 c/o) 48.0 88.4 40.4 0.731 55.6
inc (1.0% c/o) 78.0 87.0 9.0 2.247 2.0
RC11-18 468,560E/ 0/ 134.7 1.2 111.0 109.8 0.100 1.4
inc (0.05 c/o) 6,142,240N -60 1.2 105.0 103.8 0.104 1.4
inc (0.1 c/o) 9.0 66.0 57.0 0.132 1.3
RC11-19 468,540E/ 180/ 96.6 6.0 75.0 69.0 0.058 1.0
inc (0.05 c/o) 6,142,248N -50 6.0 57.0 51.0 0.067 0.9
2010 ROUNDY CREEK CALCULATED DRILL COMPOSITES (SELECTED)
Hole Number EASTING/ AZIMUTH/ TD (m) From (m) To (m) Length (m) % Mo ppm Ag
NORTHING BEARING
RC10-02 468,554E/ vert 328.9 3.0 84.0 81.0 0.383 1.0
inc (0.1 c/o) 6,142,253N 21.0 69.0 48.0 0.611 1.0
inc (1.0% c/o) 48.0 69.0 21.0 1.212 1.4

1. Principal composites are calculated at a cut-off grade of 0.027% molybdenum as stated in the 2010 Kitsault Mine Feasibility Study dated December 15, 2010 prepared by AMEC Americas Limited (the "Kitsault Mine Feasibility Study) and allow inclusion of up to nine meters of material below that grade. Other cut-offs (internal to the main 0.027% zones) at 0.05% and 0.10% molybdenum use the same compositing rules. Multiple intersections in a hole are separated by the word "and". As Roundy Creek is intended to be a high-grade satellite feed, cut-offs at 0.05% or 0.10% molybdenum are more appropriate. Cut-offs at 1.0% are intended to highlight the ultra high-grade UST zones.

2. Gaps in the Kitsault hole number sequence indicate drilling conducted elsewhere on the property for condemnation purposes that do not contain significant mineralization.

3. Approximate horizontal widths at Kitsault can be calculated by multiplying the drill thickness of a -45 degree inclined hole times 0.7 and a -60 degree inclined hole by 0.5. Roundy Creek horizontal widths are unknown at this point as the geologic model is being developed.

4. Silver results on the above table are included for informational purposes only. Please consult the Company's recent Kitsault Mine Feasibility Study for a discussion on the possibility of silver by-product recovery. No revenues have been assumed for silver in the Kitsault Feasibility Study but metallurgical test that may develop a saleable silver by-product are underway.

All of the sawn half core drill samples (dominantly HQ size) collected by Company personnel are delivered to the ALS Minerals sample preparation lab in Terrace, B.C. or Anchorage, Alaska where they are logged into the computer tracking system, crushed, split and a pulp sample prepared. Various quality control tests for crushing and labeling accuracy are performed at this lab. The pulp samples are then sent to the ALS Minerals laboratory in Vancouver, B.C. for 33-element analysis by Inductively Couple Plasma - Atomic Emission Spectroscopy. ALS Minerals is an ISO/17025 certified laboratory. ALS monitors quality control through the introduction of blanks, standards and duplicate sampling. In addition, Avanti personnel routinely insert hidden blanks and standards into the sampling stream. Bruce Davis, FAusIMM, is responsible for analyzing the QA/QC aspects of this work and Ken Collison, P. Eng., Senior Vice President Project Development, is responsible for the technical information in this press release. Both individuals are Qualified Persons as defined by NI 43-101.

Avanti Mining Inc. is focused on the development of the past producing Kitsault molybdenum mine 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.

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 timing of the release of drill results and the content of any future drill results and the potential to define the resource at Roundy Creek 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 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.

Contact 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