AVO avoca resources limited

FIRST HIGH GRADE ORE FROM TRIDENTAvoca Resources Limited (Avoca)...

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    FIRST HIGH GRADE ORE FROM TRIDENT
    Avoca Resources Limited (Avoca) is pleased to announce that it has commenced the production of high
    grade ore from its Trident underground gold mine at Higginsville in Western Australia. Ore has been
    intersected on the 1170 level and 1155 level cross cuts at the top of the Eastern Zone. The ore widths and
    grade are in line with the modelled ore outlines. Eleven occurrences of visible gold were identified in the
    initial face of ore on the 1155 ore drive, an example of which is shown below as Figure 1. Additionally, the
    Company announced in its June quarterly report that it had produced 10,000t at 1.5 g/t gold of low grade
    material from Trident that had been designated as waste in the mine design model. Low and high grade
    material is being stockpiled on the surface.

    Managing Director Rohan Williams said “it is key milestone in the Company’s evolution” and added “it was
    only three years ago that we signed an agreement to buy Higginsville, which at the time was an advanced
    exploration play. To turn the exploration play into a large one million tonne per annum operating
    underground gold mine in the three years is an excellent achievement by everyone who has been involved
    in the project.”
    Treatment of the Trident ore is anticipated to be through toll treatment / ore purchase arrangements during
    the construction period of Avoca’s new 1 Mtpa CIL Higginsville treatment plant, scheduled for
    commissioning in June 2008. Negotiations regarding toll treatment / ore purchase remain ongoing.
    The Directors of Avoca believe that with the continued exploration success at Trident (Apollo, and
    extensions at Athena and Poseidon South); the excellent opportunity for discovery on the Chalice leases,
    and following the Company’s recent discovery of the Wills Prospect, Avoca is well placed to develop a 10+
    year mine life for Higginsville.
 
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