Avanco Resources (ASX: AVB) is a Brazil-focused exploration and development company. The company is developing the high grade Rio Verde Copper Project and exploring for nickel sulphides at the Touro Nickel Project. Both projects are located in the world class Carajas Mineral Province in northern Brazil.
Avanco is focusing on a pipeline of copper projects on the Rio Verde property and is targeting a 100Mt copper resource portfolio.
Avanco Resources commences drilling at nickel project in Brazil
Avanco Resources (ASX: AVB) has commenced a 2,000m diamond drilling program at its 100% owned Touro Nickel Project in the Carajas Province of Brazil.
The drilling programme will test the coincident nickel, platinum and Induced Polarisation (IP) anomalous trends across the Touro Sill.
Tony Polgase, Executive Director, said that an extensive programme of geophysical and geochemical surveys have recently been completed with results interpreted to be extremely positive and supports the strong view that the Touro Sill may host high concentrations of nickel sulphides.
The Company's only drill hole into the Touro Sill, TSD-01, intersected 0.09% nickel over 130 metres and proved that significant widths of nickel mineralisation exist within the Touro Sill.
Importantly TSD-01 was drilled prior to the completion of the geophysical surveys and did not test any of the IP anomalies the Company has since outlined.
The Company is highly encouraged by these recent exploration results which continue to highlight the geological similarities to Mirabela Nickel’s giant Santa Rita Nickel Project in the northeast of Brazil.
The Touro Sill was covered by a 200 metre line spaced dipole-dipole IP survey. In most lines, very strong chargeabilities, coincident with low resistivities were detected. The majority of the stronger IP anomalies are coincident with anomalous nickel and platinum in soils.
Evaluation of this data suggests that the IP responses may be related to the existence of sulphide mineralisation. These are considered high priority drill targets.
A ground magnetic survey was undertaken across the entire Touro Sill. This has defined a four kilometre long magnetic anomaly trending east-west to east-northeast.
The project area was sampled on a 200m x 50m grid with samples being assayed for multi-elements by ICP analysis. The extensive nickel anomalous trend was also assayed for platinum group metals by fire assay.
The company says the results from the geochemistry indicate the existence of an extensive nickel soil anomaly with values >1,000ppm nickel and peaks of up to 2,000ppm nickel. The anomalous area extends for over four kilometres along the same east-west to east-northeast orientation and aligns well with the magnetic trend.
Evaluation of the platinum results show that 33% of the samples were >9 ppb platinum, with peaks of up to 38 ppb platinum. This outlines a major east-northeast platinum anomaly 3,200m long x 200m - 400m wide.
Platinum shows a strong correlation with nickel. It is also evident that the higher platinum values are coincident with the higher IP chargeability anomalous trend. This further supports the Company view that the IP anomalies may reflect the presence of underlying nickel sulphide mineralisation.
The 2,000m diamond core drilling programme has commenced utilising one rig and will test the coincident nickel, platinum and Induced Polarisation (IP) anomalous trends across the Touro Sill.
The drilling services are provided by an international contractor very familiar with the region. The drilling contractor has capacity to supply additional rigs as maybe requested by Avanco.
Target selection has been based on high IP chargeability with coincident low resistivity anomalies plus coincident nickel and platinum in soils.
The first hole to be drilled in this programme, TSD-02, has been sighted to intersect a strong IP chargeability anomaly (50mv/v), showing coincident low resistivity (15 Ohm*m) with coincident soils of 1,249ppm nickel, 30ppb platinum and 16ppb paladium respectively.
This initial 10 hole wide spaced drilling programme will extend to over 2,400m of strike along the Touro Sill.
The Company has recently announce a non renounceable entitlements issue of approximately 204,492,948 Shares at an issue price of 2.5 cents each, on the basis of one (1) Share for every one and a half (1.5) Shares held on the record date, together with one (1) free attaching option for every five (5) shares applied for and allotted, to raise approximately $5,112,324 (Offer). The offer is fully underwritten by CPS Securities.
Key Details of the Offer are:
- Funds raised will ensure that the Carajas Copper Project is advanced to a production decision later in 2010.
- Funds raised will allow for the current drill testing of the Touro Nickel Sulphide Project.
- Funds raised will allow for the evaluation and acquisition of additional copper and nickel projects in Brazil.
- Shareholders will be able to maintain exposure to the Company’s highly prospective properties in the World Class Carajas Province of Brazil including the high grade Carajas Copper Project where the Company has previously published a inferred and indicated JORC Resource of 210,000t at 11.65% copper, containing 24,400t of copper.
- The Company will have a strong cash position to takeadvantage of opportunities that are constantly being presented to the Company in Brazil.
- The attaching options will be the existing (AVBOB) class of option and the Company will apply to have these options listed on the ASX.
