RIO VERDE COPPER UP-DATE The Company is pleased to report new and continuing intersects of substantial ore grade copper-gold mineralisation at Antas North. Also, that early review of an airborne VTEM survey has identified potentially new drill targets. Current highlights from Antas North include: 75.05m at 1.03% Copper and 0.19g/t Gold from 13.65m 10.30m at 4.15% Copper and 0.16g/t Gold from 92.90m ? Continuation of the high grade massive sulphides (reported previously1) at the base of the broader ore body, has been intersected at both current extremes AAND-372 (638,000E) and AAND-362 (637,700E), confirming a 300m long consistent and continuous feature in the orebody. ? AAND-27 (637,900E) along strike from the widest part of the ore body intersected over 85m of continuous mineralisation from near surface, supporting the likelihood of a simple open pit mining scenario. ? New results from Antas North include: ? 7.25m at 1.47% Copper, 0.31g/t Gold from 28.00m AAND-25 ? 18.50m at 1.36% Copper, 0.09g/t Gold from 46.00m AAND-26 ? 10.00m at 1.22% Copper, 0.10g/t Gold from 3.65m3 AAND-27 ? 75.05m at 1.03% Copper, 0.19g/t Gold from 13.65m AAND-27 Incl. 23.15m at 1.74% Copper, 0.23g/t Gold from 13.65m ? 20.00m at 1.36% Copper, 0.39g/t Gold from 4.00m3 AAND-29 ? 19.75m at 1.08% Copper from 3.00m3 AAND-31 ? 8.05m at 1.39% Copper, 0.43g/t Gold from 68.00m AAND-31 ? 10.30m at 4.15% Copper, 0.16g/t Gold from 92.90m AAND-31 ? Based on the visual presence of massive sulphides and high concentrations of chalcopyrite in holes AAND-36 and AAND-37 the pending results for these holes are expected to show a continuation of the tenor of grades reported previously1 in AAND-14 and AAND-15. ? A helicopter VTEM survey has been completed and data processing has commenced. Observations from the raw data, point to a number of untested targets at Antas North and Antas South. AVANCO RESOURCES LIMITED Hole AAND-33 Disseminated and Matrix Sulphides8 Hole AAND-35 Matrix and Semi-Massive Sulphides8 Drilling at Antas North to date has delineated continuous mineralisation over +300m of strike and extending to more that 150m vertically below surface. The ore body is a wide and continuous vertical shoot, splitting at the eastern end. The massive sulphides follow the base of the orebody, and remains at the base of the northern shoot where the orebody splits. Mineralisation is open at depth on the five 50m spaced sections in the centre of the orebody. These depth extensions are currently being drill tested. The above mentioned high grade core presents another early production route for the Company4. An initial evaluation has already commenced with froth flotation testing, (an efficient process for both copper and gold extraction5) to determine metallurgical performance. For any early mining activities, a “Trial Mining Licence”6 and an “Environmental Operating License” is required (the later having been already granted 7). In seeking near-term development opportunities the Trial Mining License is being pursued by the Company. Tony Polglase Managing Director 1. See ASX Announcement “Massive Copper Sulphides Intersected at Rio Verde”, 17 October 2011. 2. Drill holes in progress and/or results pending. 3. Copper mineralisation composed of oxides. 4. Trial Mining at the HGZ has been examined previously See ASX announcement. 5. The giant Sossego Mine (Vale SA) to the southwest of Rio Verde produces ~120,000tpa of copper metal (including gold credits) in the form of flotation concentrates. Primary copper sulphides are hydrophobic and normally respond well to the froth flotation process. Associated gold values at Rio Verde are probably hosted within the matrix of the sulphides and will report with the copper concentrate. Any fine free gold present will also be recovered, as native gold is also hydrophobic. Coarse gold will require a gravity process ahead of the flotation unit. 6. The “Trial Mining” facility allows limited mining activities while mine development is progressed through studies, build and regulatory permitting for full scale operations. 7. See ASX announcement “Carajas Activities Update”, 13 May 2010. 8. “Matrix” – relates to sulphide development which has progressed to the point where it is the “cement” that holds the brecciated (broken) rock together to make a patchwork of rock pieces and sulphide, thus sulphide is a significant portion of the sample. This is generally far more sulphide volume than disseminated sulphide, but is less than massive sulphide. The information in this report that relates to Mineral Resources and Exploration Results are based on information compiled by Mr Simon Mottram who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Mottram is a Director of Avanco Resources Limited. Mr Mottram has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Mottram consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. AVANCO RESOURCES
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