ann coming ?, page-2

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