ASX-listed Avanco Resources has further secured the future of its Antas copper-gold development in Para state, Brazil, with two marketing agreements and positive exploration results from the larger Pedra Branca deposit nearby.
CopperGoldBrazilAvanco Resources
Construction and commissioning at the 12,000 tonne per annum Antas project were just about concluded by the end of March, with commercial production expected before the end of the current quarter.
Almost 90t of ore was mined during the March term at grades north of 2%Cu and about 1g/t Au for 1,812t of copper and 2,328oz of gold respectively. The plant was commissioned in February and reported 89.8% recovery on copper and 84% for gold.
A three-year US dollar marketing agreement was signed during the quarter with a second said to be on the negotiating table at present.
That helped Avanco ship 250,000t of 28% Cu, 4.5g/t Au concentrate over the period, with a further 3,000t moved in April. Crucially, the company also received its first cash from sales last month.
Meanwhile, Avanco said it planned to assess a trial underground mine at the Pedra Branca deposit, which could potentially produce 35,000tpa of copper concentrate.
Rock from Pedra Branca would be processed using extra capacity at the Antas plant and should give management a clear idea of how the deposit will perform commercially before the trigger is pulled on development.
The current drill programme at Pedra Branca included highlights of 21.05m at 2.4% Cu and 0.71g/t Au; and 29.95m at 2.24% Cu and 0.48g/t Au.
Avanco finished the March period with more than US$20 million in the bank and no debt, and has been rewarded with a Buy recommendation and a A$0.15 (US$0.11) per share target price by Numis Securities.
Shares were trading at around A$0.7 early this week.
AVB Price at posting:
7.3¢ Sentiment: Buy Disclosure: Held
