Ann: CentroGold Exceeds 1.8 Million Ounces - Addendum, page-2

CentroGold Resources Increase 45% and Exceeds 1.8 Million Ounces - Addendum
ASX: AVB (‘AVANCO’ OR ‘THE COMPANY’) updates the market with the following addendum:
ASX LISTING RULE 5.8.1 COMPLIANCE
Mineral Resource Classification
1. Further discussion on the criteria used for classification of each category of mineral resource:
Preliminary pit optimisations were used to assist in classification of the Chega Tudo Mineral Resource. Based on these results, it was the opinion of the Competent Person that only mineralisation reporting above -70 mRL would be classified on the basis of ‘potential for eventual economic extraction’. In addition to the preliminary pit optimisations, classification of the Mineral Resource utilised numerous factors including: the quality of samples, density data, drill hole spacing, drill-hole surveying, historical nature of the drilling, sampling and assaying processes, and estimation quality. Drill spacing within the Indicated category ranges between 20 – 60 m spaced sections with holes collared at 25 – 40 m spacings on section, however drill orientations and dips along section may vary due to the sub-vertical nature of the mineralisation and access difficulties created by the topography. The drill spacing is sufficient to allow the geology and mineralisation zones to be modelled into coherent wireframes. Reasonable consistency is evident in the orientations, thickness and grades of the mineralised zones. For areas with more limited data density, and limited along-strike or down-dip continuity, there is sufficient evidence to imply but not verify geological and grade continuity, these areas are classified as Inferred.
2. Further discussion to give context to the mineral resource estimate: Geological block model sections which are unconstrained at depth by pit shells are generally misleading, not representative of what is potentially economically exploitable, more easily taken out of context, and not considered material to the reporting of an Indicated-Inferred Mineral Resource Estimate.
Sections with economic pit shell constraints are considered more appropriate and definitive in their representivity and context. However, pit shells are generated within the scope of an economic study, and thus appropriate plans and sections will be shown as appropriate, in the ensuing Scoping Study.