Avoca hints at further acquisitions CORTLAN BENNETT April 29,...

Avoca hints at further acquisitions

CORTLAN BENNETT
April 29, 2010 - 6:54PM
AAP

Avoca Resources Ltd has hinted it might be looking for other acquisitions, after taking over fellow gold miner Dioro Exploration NL for $115 million last month.

The company now had "the largest holding on the best gold belt in Australia", managing director Rohan Williams told a West Australian Mining Club luncheon in Perth on Thursday.

Mr Williams was referring to the company's four operating gold mines in WA's Goldfields region

"Production levels are going to be plus 280,000oz of gold per annum," Mr Williams said.

"I'm expecting a cash operating cost of that production of around A$550oz ... so anyway you cut this ... we're going to make a lot of cash.

"We have a reserve base of 1.2 million ounces that will grow, a resource base of almost 4 million ounces that I'm sure will grow.

"We have ourselves the largest holding on the best gold belt in Australia.

"There is some fantastic potential for further exploration and discoveries and probably even some more acquisition opportunities coming up."

While Mr Williams would not elaborate on potential takeover targets, he said Avoca wouldn't be looking overseas.

"We get asked a lot do we want to go overseas, and the answer to that is no," he said.

"We have a very good understanding of that northern (Goldfields) belt ... and that's going to be our focus.

"I'm confident with our knowledge of the field we'll find more gold.

"We've got ourselves a very strong position now to really grow the company dramatically in this belt, we're big believers in that belt - there's a lot of gold to be found - we need to focus on that belt, so we're not going to be rushing overseas in a hurry."

Mr Williams would not comment on Avoca's recent approach to its Canadian joint venture partner La Mancha Resources to buy the remaining 49 per cent in its Frog's Leg mine in WA

"You need to speak to the owners," he said.

http://news.smh.com.au/breaking-news-business/avoca-hints-at-further-acquisitions-20100429-twar.html