Avanco, through AVB Mining Ltd, received last Friday (5) a concession for mining of ores of copper and gold, in Pará municipalities of Canaan, and Curionópolis Paraupebas. The grant, for part of the project known as Antas North, was published Tuesday (9) in the Official Gazette by the Ministry of Mines and Energy.
The ordinance covers an area of 7,290 hectares and encompasses the measured reserve of 6,763,732 tons of crude ore (ROM) of copper, according to the Final Research Report. According to the ordinance, the mining is subject "to the average annual production of 380,000 tonnes on the mineable reserve of 3,421,681 tons of crude ore (ROM) of the Plan of Economic Exploitation of the deposit, approved by the National Department of Mineral Production."
The main equipment is in manufacturing or delivery process, such as ball mill and the filter press. The mill is being prepared for shipment at the port of Houston, the United States, and should arrive in Brazil at the end of September. The filter is being manufactured by Metso in Europe. The vibrating feeder and secondary crushing are being assembled in Brazil.
Director of Avanco, Luis Mauricio Azevedo, attributes this progress to the persistence and dedication of the mining team. "Avanco is proof that Brazil can work meeting deadlines and schedules, and rely on the cooperation of regulatory bodies. The Sema, DNPM and MME were always informed of the progress of the project and when we need the licenses, they were obtained in a very reasonable time, "he said, referring to the stigma that the junior miners face, since they are seen more as research companies, exploration or speculators and not as potential producers, Similarly Brazil is usually seen as a bureaucratic country.
Azevedo says it was only six years between the companies listing until the attainment of reserves, ie with two major crises in the period. The Advancement appeared in 2008 and the application for a mining concession was made in 2013.
"We pride ourselves on completing almost 60 miles of drill core and spending only about $ 30 million, all certified by the JORC code. It is rare for companies to drill so much, in so little time and with so little money. This shows that in Brazil, things are not so expensive and the difference may be in management. Avanco pursued lower cost and the best result. The money of shareholders is taken seriously, "says the director.
The next step is to get $ 60 million from investors to take the role in 2015 and the plant to produce copper concentrate. " Avanco will accelerate after this period and we are already preparing for getting a second advanced project running and it should also turn into a mine by 2017, "said Azevedo.
This week, fund manager at BlackRock, Evy Hambro, said the Advancement Resources is the company that has excelled among junior mining companies listed on the Australian stock exchange (ASX). The BlackRock fund is the single largest shareholder of AngloGold Ashanti and the fourth largest in Vale.
The scope of the Avanco project is to produce concentrate with 30% copper and 0.8 grams per tonne gold. The product will flow in big bags, Paraupebas by truck to the port of Belem, which must be shipped to Europe. The target board is about 1 thousand tons of concentrate per week.
According to Azevedo, Avanco is prepared to make the transition from explorer to producer company. "If you look at the profile of the board, will see that I am not the only one born a miner, despite having worked and operated two mines in Goiás, and assisted several other companies operating here," says the director, who is a lawyer and geologist.
"As for the other directors - Tony, Colin, Simon, and Wayne - they have together almost 150 years of experience, collected in over ten different countries on four continents," says Azevedo"
Snippets out of that...stage 2 is progressing behind the scenes.
Stage 1 ...1000 tonnes of concentrate @ 30% copper PLUS gold is 15,600 tonnes of contained copper plus 1469 oz gold so perhaps we'll see production upgrades as next year progresses. Directorial team is named and you know who isn't mentioned. This would imply he is not regarded as part of the team.
AVB Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
