(MENAFN - ProactiveInvestors - Australia) Avanco Resources' (ASX: AVB) is well on its way to achieving its over 600,000 tonnes of contained copper target in the September quarter of 2012, after increasing its Resource inventory in Brazil to over half a million tonnes.
The company increased its Recources by 49% on strong new intercepts from 10 new drill holes at its (stage two) Pedra Branca Project in Brazil's Caraj¡s Mineral Province.
Importantly, the over 600,000 tonne target is what is required to support an above 30,000 tonne per annum production operation from Avanco's stage one and stage two Caraj¡s copper projects.
The JORC Resource for the company's stage one and two projects now stands at 45.43 million tonnes at 1.22% copper, 0.30 grams per tonne (g/t) gold for 555,000 tonnes of contained copper and 445,000 ounces of gold.
Pedra Branca is Avanco's stage two project and the larger development target, located 50 kilometres southwest of the (stage one) Antas North Deposit.
Demonstrating the potential for a further increase, only 40% of the current drilling program is complete and stage two remains completely open, with step-out drilling yet to reach the limits of mineralisation in any direction.
Highlight intersections from drilling on stage two include:
- 21 metres at 1.16% copper, 0.22g/t gold from 582.5 metres;
- 39.2 metres at 1.43% copper, 0.23g/t gold from 419 metres, including 27.15 metres at 1.92% copper, 0.32g/t gold; and
- 53.05 metres at 1.34% copper, 0.28g/t gold from 371.15 metres, including 29.65 metres at 1.99% copper, 0.39g/t gold.
Development studies and metallurgical testing of the (Stage I) Antas North Deposit continue.
Avanco is targeting a 30,000 to 50,000 tonne per annum copper metal production project in the Caraj¡s with a 10 year mine life.
The company is aiming to further increasing its resource base in 2012 and is investigating options for a small-scale open pit operation at Rio Verde.
Rio Verde comprises seven copper prospects " Agua Boa, Antas North, Antas South (host to the High Grade Zone), Capivara, Clovis, Lazinho and Paulinho.
Pedra Branca is located south of Rio Verde with potential for synergies between the two projects for future mine developments.