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Avoca Resources expects to extend resource at Frog’s Leg gold mine

Avoca Resources expects to extend resource at Frog’s Leg gold mine

Avoca Resources (ASX: AVO) has reported that several of the drill results from the mineral resource extension drilling program at its 49%-owned Frog’s Leg mine in Western Australia have returned significant gold intercepts.

Avoca co-owns the mine along with La Mancha Resources Inc (TSE:LMA) (51% owner and operator of the mine). Drilling from the first two of five underground drill stations testing the Frog’s Leg depth extension is now complete.

40m x 40m drilling has confirmed continuity of mineralisation beyond the Frog’s Leg Indicated Mineral Resource boundary with several high grade intersections.

Best intersections from results returned to date include: 4.30m @ 73.7 g/t gold; 5.86m @ 35.7 g/t gold; 4.98m @ 34.7 g/t gold; 5.23m @ 19.9 g/t gold; and 10m @ 11.9 g/t gold

The assay results received to date suggest that the Frog’s Leg ore body is extending towards the south and 250 metres below the current resource boundary.

Rohan Williams, managing director and CEO of Avoca, said “the information collected to date suggests that the Frog’s Leg ore deposit is extending at depth in a manner similar to what is being observed in the upper part of the mine."

"We are confident that the drilling program will allow for the extension of the Frog’s Leg mineral resource at depth and consequently its mine life.”

The results reported today represent approximately 65% of all the core collected to date and 27% of the planned resource expansion program.

A preliminary updated resource estimate is expected for September 2010. In addition, La Mancha Resources has confirmed its program objective of increasing the Frog’s Leg mineral resource by at least 150,000 ounces of gold.

The program is aimed at testing the continuity of the Frog’s Leg deposit below the current arbitrarily defined boundary with a total of 38,500 metres of drilling on a 40X40-metre grid to be carried out from five drilling stations located approximately 330 metres below surface.

The company said drilling activities moved from Station #2 to Station #3 in August 2010. Approximately 23,000 metres remain to be drilled from the last three stations. Avoca expects the drilling to be completed in March 2011.

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