Carajas, Brazil EXCEPTIONAL EARLY RESULTS FROM RESERVE DRILLING PROGRAMME The Company is extremely pleased to advise the successful ramp up of the Stage 1 (Antas North) drilling programme with five drilling rigs now operational. Early drill holes have returned abundant visible copper mineralisation recorded over substantial intersects from near surface. A visual inspection of the drill core re-affirms and validates the Company’s strategy for rapid implementation of the Antas North Copper Mine. HIGHLIGHTS Holes AAND-67 and 68 intersected the orebody1 close to surface as was interpreted, high concentrations of Chalcopyrite (primary Copper mineral) over significant widths were logged accordingly: • AAND-68 (total depth 90.80m) intersected 83.35m (~64m True Width) of mineralisation from surface, including 58.75m (~45m True Width) of Sulphide mineralisation from 24.60m (~19m True Depth). • AAND-67 (total depth 75.65m) intersected 56.30m (~43m True Width) of mineralisation from surface, including 33.95m (~26m True Width) of Sulphide mineralisation from 22.35m (~17m True Depth). This part of the orebody (Section 637,850E) is significantly wider near surface than delineated in earlier 50m spaced drilling. Importantly it hosts near surface (previously concealed) higher concentrations of copper mineralisation (photos AAND-068, 071) and was until now a location not considered a priority for sourcing early mine production Following these discoveries an additional 25m infill drill section (637,825E) was added further West (photos AAND-072, 074), where mineralisation appears to be improving, i.e. hole AAND-074 including 5.10m of massive sulphide Chalcopyrite These (shallow) holes confirm the continuation of the orebody close to surface and presents new opportunities for optimisation of the open pit model Three diamond rigs continue to progress the 25m x 25m resource / reserve drill out of Antas North, 861m of the planned 2,005m has been completed While management maintains the view that infill drilling should show “more of the same”, geological observations (for the opening ~40% of the programme) significantly exceed expectations for the western side of the deposit Two bespoke geotechnical drilling rigs are currently testing engineering / soil mechanics proximal to the proposed tailings dam and plant footprints. Although still at an early stage, the presence of near AVANCO RESOURCES LIMITED AAND-067. Pictured from True Depth: ~38.00m AAND-067. Close-up Breccia Matrix Mineralisation surface “competent basal rock” has been identified, a feature considered highly desirable for sound dam design and operation Condemnation drilling aimed at sterilising areas nominated for construction continues using all three of the Company’s Power Auger rigs The Open Pit Geotechnical diamond drill programme will be undertaken on completion of the resource / reserve programme Early observations have exceeded management expectations. Following comprehensive on site management discussions, the Directors have approved the Company’s first development expenditures aimed at securing long lead plant and equipment for the development
AVB Price at posting:
7.4¢ Sentiment: Buy Disclosure: Held
