The DNPM1 has approved the Pedra Branca Mineral Resources2...

The DNPM1 has approved the Pedra Branca Mineral Resources2 representing an important milestone paving the way for further regulatory submissions pursuant to a full Mining License for Stage 2
Ø? The Approval by the DNPM of the Mineral Resources supports the scope, quality and results of exploration, providing confidence that Pedra Branca has the potential to support mining activities
Ø? Grant of the approval in a timely fashion is a testament to the support being received from the State/regulatory authorities, and bodes well for further regulatory news for Stage 1
Ø? Avanco is undertaking studies aimed at reaching a "decision to mine" at Stage 2 by mid-2015. Regulatory and environmental permitting forms an integral part of the process and both are being pursued
Ø? Resource modelling has defined High Grade cores within the East and West Pedra Branca (Stage 2) orebodies, and indicates the potential for a long life, high grade underground operation
Ø?The very important component in the regulatory process, the presentation of the Mining Study3, has been submitted
Ø? Excellent progress has been achieved on Stage 2 metallurgical testing with provisional review/results anticipated soon, early indicators are highly encouraging
Ø? Underground modelling of the high grade Pedra Branca East orebody continues. This exercise will assist in defining the next infill drill programme where upgrading of the resource confidence is a priority
Ø? Avanco owns 100% of the rights to the Stage 1 and Stage 2 Copper Projects in Carajas, Brazil. Pedra Branca (Stage 2) is being progressed to a “decision-to-mine” status concurrently with the development and implementation of the more advanced Stage 1 (Antas North)
Ø? Reserve drilling at Stage 1 will re-commence this week with assays anticipated in a timely manner
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?STAGE 2 PEDRA BRANCA
Resource modelling at Pedra Branca has defined High Grade cores within the East and West orebodies. Both orebodies appear amenable to underground Mining techniques.
STAGE II
PEDRA BRANCA - JORC Reported Mineral Resource Summary4,5,6,7
??????????????????????????????????????????????????Ore
Zone Category
East Inferred
West Inferred
Total
Million Cu Au Ag Tonnes (%) (ppm) (ppm)
20.48 1.50 0.37 0.82
26.34 0.96 0.30 0.58
46.82 1.20 0.33 0.69
Copper Metal (T)
307,000
253,000
560,000
Gold Metal (Oz)
243,000
257,000
500,000
Silver Metal (Oz)
541,000
494,000
1,035,000
?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????A phased approach is now being discussed, being likely to deliver an attractive mining opportunity while minimising risk and capital drain. Commencing the Stage 2 project in the East will provide fastest access to the highest grades, followed by subsequent expansion into the Western Orebody. Furthermore, access to the deep high grade portion of Pedra Branca West will preserve the majority of the value in the shallower part of the ore body, for a concurrent or later open pit development.
Underground modelling of the high grade Pedra Branca East continues aiming for better understand the economic drivers. This exercise will assist in defining the next infill drill programme where upgrading of the existing Inferred resource confidence to at least Indicated and Inferred is a priority
Management aim to reach a "decision to mine" at Stage 2 by mid-2015, a timely milestone coincident with possible early cash flows from Stage 1.
On reaching a positive “Decision to Mine” the Company anticipates opening the Box Cut, establishing the portal and commencing the ramp into Pedra Branca East.
STAGE 1
Reserve drilling at Stage 1 is set to re-commence this week, with flow of assay data anticipated in a timely manner.