DRA Taggart Commences Engineering Services at Avanti Kitsault Molybdenum Project in British Columbia

TORONTO, ON--(Marketwired - May 20, 2015) - DRA Taggart is pleased to confirm that it has entered an agreement with Avanti Kitsault Mine Limited (AKML), a wholly-owned subsidiary of Alloycorp Mining Inc. (Alloycorp), to conduct a comprehensive review of the Avanti Kitsault Mine Project in British Columbia.

Alloycorp, through its wholly-owned subsidiary, Avanti Kitsault Mine Ltd., is spending approximately $1 billion to develop the Avanti Kitsault Project into one of the top four primary Molybdenum mines in the world. DRA Taggart's immediate responsibility is to conduct a Front End Engineering Design study (FEED Study) to be completed by the end of August 2015. The FEED Study is aimed at confirming the engineering and procurement work done to date, further solidifying capital and operating costs, reducing overall project risks and ensuring robust project efficiencies and controls.

Upon completion of the FEED Study, DRA Taggart will present proposed project execution alternatives to Alloycorp for the 45,500 t/d processing plant, including engineering, procurement and construction, lump sum turnkey, build own operate and transfer, and variations of these execution models.

"DRA Taggart is very pleased to bring our global experience in the design and construction of concentrators of this type to the Avanti Kitsault project. We will ensure that our customised engineering services and collaborative approach to working the owner's team will result in a robust and successful project for Alloycorp and its shareholders," said Wray Carvelas, President of DRA Taggart.

AKML has completed site preparation work at Avanti Kitsault, including preliminary earthworks and grading at the plant site, access to site and camp expansion and construction of the Nass River Bridge. No further construction activities are expected to take place on site until the completion of the FEED Study.

ABOUT DRA Taggart

The DRA Group provides highly flexible services, allowing us to meet the needs of multinational mining companies as well as junior and emerging producers. Our expertise covers a wide range of commodities including gold, platinum, coal, ferrous metals, diamonds, uranium, base metals, potash and rare earths.

From its offices in Canada and the United States, DRA Taggart designs, builds and operates mineral processing, coal and materials handling facilities for mining and power generation companies worldwide. Having previously completed the design and construction of the recovery plants at two of Canada's three operating diamond mines, DRA Taggart is undertaking the detail engineering design and will commission the diamond recovery plant for Stornoway's Renard Diamond Project in Quebec. DRA Taggart is a leader in clean coal processing globally.

DRA's experience includes the design and construction of over 45 platinum concentrators over the past ten years, as well as various gold and copper projects such as the Kibali Gold Mine for Randgold Resources and AngloGold Ashanti and Konkola North for the ARM/Vale Joint Venture.