6/24/2017 Photo / Reproduction Avanco
Antas is a high quality copper and gold open pit mine. A study recently released by Mining highlighted the Antas mine, located in Curionópolis, among the five largest high-level mines in the world. The mine was discovered by the Avanco team in 2011, developed under the budget in less than 12 months, and after entering commercial production in July 2016 is already running above its original design capability. Antas is 100% owned by Avanco.
The mine is located in the Carajás mineral-rich province, work began in August 2015. The company plans to operate in 3 steps to maintain a consistent supply of ore over its useful life. The Plant was built with many main components being second hand sources, for example, the mill which was second hand but not used. Avanco said the entire flotation circuit was also acquired second hand. This has reduced many costs by more than half, significantly reducing delivery times.
Taking advantage of specialization in manufacturing specialized equipment in Belo Horizonte and São Paulo, some sectors of the plant were designed to be towed furniture, then hiked to the full location where they were mounted directly on foundation bases and connected. This reduced installation time facilitated a quick commissioning period.
The Plant comprises some of the best equipment, for example, Metso Ball Mill, Outotec Flotation Cells and Denver Cleaning Cells, all purchased at lower cost than usual and assembled faster than industry standards. The Processing Plant has operated above capacity since day one, and today it continues to exceed expectations, for example: the production capacity operated at 20% above the original design capacity; Production of copper 17% ahead in 14,000 tons of copper per year; Copper recoveries 2% higher than 97%.
The plant was deliberately designed to be flexible, with the opportunity to double capacity to less than $ 20 million if additional feed is developed or acquired in or near Antas. The annual production targets for 2017 are 13,500 to 14,000 tonnes of copper plus 9,750 to 10,500 ounces of gold in concentrate. The average annual production costs for 2017 envisage a cost of $ 1.35 to $ 1.50 / Lb to be paid in copper and a continuous cash cost between $ 1.65 to $ 1.80 / lb to be paid in copper.
Antas Mine reached the first production in May 2016, producing the first concentrate in June 2016 and declaring commercial production in July 2016, ahead of the schedule. Although not a full year of production, Antas produced 11,188 tonnes of copper and 7,779 ounces of gold in 2016, surpassing the guidance in its first year.
Avanco also benefits from a very efficient and cost-effective logistics process from ore to customer in closed containers. Importantly, this process ensures that Avanco does not experience any of the product handling losses that are typically experienced with bulk transportation. Currently, Avanco uses one of the main lines of international shipping containers. About 40 containers per week are transported by truck from the port area of Vila do Conde to the Antas mine site, loaded with the concentrates, and returned to the Port of Condoe for weekly vessels to Asia.
Writing / Portal Canaã
AVB Price at posting:
9.6¢ Sentiment: Buy Disclosure: Held
