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() has found more high grade copper from its Viscaria D Zone project in northern Sweden as drilling intersects significant copper mineralisation outside the existing mineral resource area.
Ongoing drilling is aimed at further defining high grade copper zones to support an updated resource estimate on a high grade copper only development scenario at Viscaria to be delivered later in 2015.
This would then be followed by an updated Scoping Study.
The Viscaria Copper Project in Sweden’s infrastructure rich Kiruna region is home to Kiirunavaara – the world’s largest underground iron ore mine.
On the strength of the ongoing drill campaign results it would appear likely the D Zone mineral resource estimate will be expanded.
Viscaria currently has a large resource base of 63.86 million tonnes at 1.05% copper with a magnetite resource of 35.3 million tonnes at 29.1% iron.
New diamond Drill hole VDD 185 assays results returned:
- 10 metres at 1.2% copper from 425.85m including 5.6 metres at 1.6% copper grade including 2.1 metres at 2.3% copper both from 425.8 metres.
Also promising is drill hole VDD 186 also at Viscaria D Zone completed at 563.2 metres and which intersected a 35 metre thick variably copper mineralised and altered ironstone sequence from 464.5 metres to 541.5 metres.
Notably the results show that mineralisation is improving in thickness and grade with depth on drilled section.
Assays are pending for the hole and results are expected in mid June.
Significantly drill holes VDD 183 185 and 186 are all outside of the area of the current mineral resource estimate.
The results demonstrate that the D Zone mineralisation is still open at depth.
Drill hole targeting at D Zone is being directed by key resource estimate growth opportunities and in parallel with in-house mine planning scenarios.
Avalon’s managing director Malcolm Norris said: “We are continuing to build on our interpretation of Viscaria D Zone and to bring focus on the interpreted areas of higher grade copper where they extend beyond the current resource estimate.
Particularly "where those areas have a significant positive effect on our approach to in-house development planning scenarios he said.”
Analysis
Ongoing drilling is aimed at further defining high grade copper zones to support an updated resource estimate on a high grade copper only development scenario at Viscaria likely to be delivered later in 2015.
Promisingly the D Zone mineralisation is still open at depth.
The drilling results include higher grade zones that the company will likely be looking at extracting early in the proposed operation to maximise cash flow and minimise payback period.
Avalon is working towards development of the project with a Definitive Feasibility Study expected to be completed by late 2016.
Resources are included in two copper only (A and B Zones) and two copper-iron (D and Discovery Zones) orebodies.
A proposed operation could include a first stage relatively low capex high grade copper only operation with a later expansion to a larger copper and magnetite operation.
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