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Carajas Copper Project
Introduction
Avanco's primary focus is the Carajas Copper Project located in the Brazilian state of Para between the towns of Parauapebas and Curionopolis. The Company’s strategy in the Carajas is to explore for shallow, open pit and potentially free digging copper oxide deposits that are amenable to traditional low cost SX-EW copper cathode production. The Company is now fast tracking this approach to developing the Carajas Copper Project.
By virtue of the known mines and recent discoveries within region, the Carajas is regarded as one of the most prospective provinces in the world for the discovery of copper-gold, nickel and iron ore deposits. World class Carajas copper deposits include Salobo, Igarape, Bahia, Alemao, Sossego, and Cristalino. These deposits are described geologically as iron-oxide- copper-gold (IOCG’s) magnetite/hematite breccia zones hosted by continental volcanics, sediments and intrusive rocks. It is clear that mineral occurrences located on the Company's properties show many of the traits of IOCG deposits including hydrothermal alteration, sulphide assemblage, metal association, style of mineralisation and geophysical response.
The Carajas Copper Project comprises the Rio Verde Property, the Serra Verde Property and the Trindade Properties all of which are considered very prospective for new copper discoveries. The Rio Verde Property also hosts a Carajas iron formation. The Company continues to seek to increase its presence in the region.
The Company acquired exclusive option to 100% of the 9,300ha Rio Verde property when it purchased Apoquindo Brazil Mineracao in 2007.
The Company’s Carajas properties are believed to have been previously worked for gold by garimpeiros (artisan miners). Adjoining tenement holders include Vale, Xstrata and Teck Cominco and this intense interest reinforces the Company's confidence in exploration success. The Rio Verde and Serra Verde properties were previously explored to a reconnaissance level by Barrick and Noranda, these activities were directed at deep sulphide targets leaving surface oxide mineralisation largely untested.
Existing infrastructure in the project area is excellent. The Rio Verde and Serra Verde tenements are approximately 45km from the nearest airport and are well serviced with sealed roads. The Brazilian national electricity grid system is close and local rivers flow sufficiently all year round for mineral processing needs. The nearby regional capital of Parauapebas, services the Carajas region with metallurgical laboratories, contract drilling and other essential mining services. Vale's bulk minerals heavy haulage rail system is located approximately 35 km from the project and provides access to the Atlantic port of Sao Luis approximately 900km away.
Rio Verde Copper
In April 2008 Avanco’s drilling results confirmed a significant copper oxide discovery at the Antas South Deposit. The Antas South Deposit is one of six copper mineralised zones on the Rio Verde Property and the only one drilled by the Company to that date. The company is now moving to full drill out of the Antas South Deposit with the aim of generating a JORC compliant resource. Drilling will be ongoing during 2008 as the Company further tests this and other targets on the Rio Verde Property. A second drill rig commenced in May 2008 and a third rig has been scheduled to start in August 2008.
(Please click the image to see a larger view)
The Company commenced drilling at the Carajas Copper Project in January 2008 to test for shallow oxide copper mineralisation. By May 2008 a total of 25 diamond core and reverse circulation drill holes were completed for approximately 3,000 metres of drilling. Better results from the first 25 drill holes included:
| Hole No | Intercept | |
ARVC-21 |
56m at 1.26% Cu from 0 metres |
|
AVRD-20 |
32m at 0.63% Cu from 0 metres |
|
ARVD-19 |
69m at 0.45% Cu from 0 metres |
|
ARVD-16 |
10m at 0.57% Cu from 18 metres |
|
ARVC-15 |
16m at 0.52% Cu from 4 metres |
|
ARVD-09 |
12m at 1.36% Cu from 0 metres |
|
| ARVC-05 | 36m at 0.56% Cu from 8 metres including 12m at 1.29% Cu from 32m |
|
| AVRD-04 | 58m at 0.66% Cu from 0 metres including 8m at 2.92% Cu from 50 metres 1m at 7.31% Cu from 69 metres |
|
| ARVD-01 | 53m at 0.89% Cu from 0 metres including 19m at 1.99% Cu from 4 metres |
The initial interpretation of drilling results indicates that copper oxide mineralisation at the Antas South Deposit is at least 1.4 kilometers in strike length. Copper mineralisation remains open to the northeast, southeast and the northwest. The host geology has been interpreted as being predominantly soil and saprolite over fresh basalt and gabbros. Drill hole logging has indicated that the average depth of soil and saprolite is approximately 60 meters. Copper mineralisation has been identified in all horizons.
Avanco’s strategy in the Carajas Province is firmly focussed on the development of shallow, open pit and potentially free digging copper oxide deposits that are amenable to traditional low cost heap/vat leaching with SX-EW copper cathode production. This strategy is now being fast tracked.
The Rio Verde Property is situated in a premier location for the development of a mining project. The project is approximately 30 kilometres from Parauapebas, the regional capital, with a population in excess of 180,000 and growing. The Company is of the view that a potential mining development would benefit greatly from this location.
Rio Verde Carajas Iron
In 2000 Barrick identified the existence of a banded iron formation (BIF) on the southern area of the Rio Verde property. In late 2007 Avanco undertook provisional reconnaissance exploration over this area interpreted to contain Carajas Iron Formation. A total of four rock chip samples were collected and returned between 42% and 67% Iron. Further work will be required to assess the iron ore potential of this.
Serra Verde
Avanco Resources has acquired the option to 100% of the Serra Verde Property which is currently under application by Avanco’s subsidiary company Apoquindo Brazil Mineracao. The Option agreement with Barrick allows for Barrick to “back-in” 51% to Serra Verde, however the Company believes that within the constraints of the agreement it is unlikely that this will occur.
The 10,000ha Serra Verde Property is located 2km north of Rio Verde. A small garimpeiro (artisan) shaft and a large open pit exist within the property. The open pit is situated on an anomalous trend which has not been adequately investigated. There are two known additional mineralized occurrences: Alagoano and Pedro. Early recognizance exploration on Serra Verde was conducted by Barrick in 1999 and by Apoquindo Brazil Mineracao in 2005 with both companies targeting deeper sulphides. Avanco’s evaluation of the Serra Verde Property for copper oxide potential will be on-going in 2008.
Trindade
The Company has strengthened its position in the Carajas Province by entering into an option agreement to acquire 100% of four additional exploration licenses considered prospective for copper mineralisation. These Trindade Properties, relate to two separated areas, referred to as “Trindade North” and “Trindade South” with a combined tenement area of 14,700ha. The Company has commenced exploration activities on the licence including a copper in soil geochemical sampling programme.
Given the prospectiveness of the Carajas, Avanco will be proactive in searching and acquiring (or entering joint ventures) similar exploration tenements. This expansive approach will establish and consolidate the Company's presence in the region.
