Alloycorp Mining Inc. (TSXV:AVT) released an update on its Avanti Kitsault project, noting that at the end of April, engineering and procurement for it was about 60 percent complete.
Alloycorp Mining Inc. (TSXV:AVT) released an update on its Avanti Kitsault project, noting that at the end of April, engineering and procurement for it was about 60 percent complete. Meanwhile, credit commitments of US$225 million have been secured by the company.
The company also states:
Engineering services have also been transitioned to DRA Taggart (‘DRA’), which has initiated a Front End Engineering Design Study (‘FEED Study’) aimed at confirming engineering and procurement work done to-date. The FEED Study will provide better definition of the overall project execution plan and update estimated capital and operating expenditures, while reducing risk for the Avanti Kitsault Project. Upon completion of the FEED Study, DRA will present proposed project execution alternatives to the Company, including a lump sum engineering model, a build own operate and transfer model or a variation of both. Until the FEED Study is completed, no further pre-construction activities are expected or required to be undertaken. In the meantime, overall site management will be transitioned to the Company’s team.
Concurrent to work on the FEED Study, the Company is developing a revised estimate of initial construction capital, sustaining capital, metallurgical recoveries and operating costs for Avanti Kitsault based on advances in engineering, procurement and metallurgical test work. The revised estimate is expected to be completed in the second half of 2015, at which time the Company intends to file an updated NI 43-101 Technical Report.