Photo by: Bloomberg
PERTH (miningweekly.com) – Base and precious metals miner Avanco Resources has reported a maiden Joint Ore Reserves Committee-compliant reserve of 2.64-million tonnes at its Antas copper deposit, in Brazil.
Grading 3.19% copper and 0.66 g/t gold, the project is estimated to host a reserve of 84 518 t of copper and 56 277 oz of gold.
Avanco pointed out on Wednesday that some 72% of the project’s contained copper in the measured and indicated resource category had been converted to ore reserves, with 60% of the reserves classified as proven.
Earlier this month, Avanco was granted a mining licence for Stage 1 of its Antas copper project, which would allow the company to establish an openpit operation that would run until the reserves were exhausted.
Avanco is currently hoping to mine about 12 000 t/y of copper and 7 000 oz/y of gold under the Stage 1 development at Antas, with first production targeted for early 2015.
The company told shareholders on Wednesday that securing the $70-million project financing was now the next significant milestone for the development of the Antas mine.
The company’s lead banker would raise $58-million in senior debt, with the remaining $12-million expected to come from BlackRock World Mining Trust, by way of the BlackRock royalty agreement.
While progress towards the execution of the senior debt was ongoing, other time critical construction activities such as engineering design and the import of the ball mill, were also being pursued, Avanco said.
Construction work was slated to start in the fourth quarter, with the commissioning of the Stage 1 project earmarked for the second quarter of 2015.