Photo by: Bloomberg
PERTH (miningweekly.com) – The board of ASX-listed junior Avanco Resources has approved a A$10.6-million exploration budget for this year, to focus on its Brazilian projects.
“Over the last decade, Avanco has accumulated an exciting portfolio of projects and tenements in the Carajas, a premier mineral province for the exploration and development of high-grade copper mines,” said executive director of exploration Simon Mottram.
He pointed out that Avanco held the second-largest copper tenement land package in the region and was generating free cash flow with its producing Antas mine, meaning the company was well positioned to deliver growth into an improving copper market.
“As a result, management has renewed confidence in its aspirations to become a 50 000 t/y copper producer with further optionality upside,” Mottram said.
Over the next year, some A$1-million will be spent to increase the Joint Ore Reserves Committee-compliant mineral resource and reserves at the Antas project, with a further A$3.6-million to be spent on sustaining capital and improvements at the mine.
Avanco has set aside A$4.4-million for a definitive feasibility study and further exploration and development at the Pedra Branca East project, while some A$900 000 will be used to advance the Centro gold project, and a further A$700 000 for regional exploration.
The Pedra Branca East project is Avanco’s second and largest asset, and Avanco is hoping to take the mine from a smaller start-up project to a full-scale development producing 24 000 t/y of copper.
The exploration budget is based on around 50% of the total full year free cash flow expected from the Antas mine.