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Avanco builds momentum at CentroGold

Avanco Resources’ (AU:AVB) lone gold project in Brazil is starting to show its worth, with an updated resource statement being followed up by a very promising set of drill assays.
Avanco builds momentum at CentroGold Avanco builds momentum at CentroGold Avanco builds momentum at CentroGold Avanco builds momentum at CentroGold Avanco builds momentum at CentroGold

Avanco is making a copper and gold home in Brazil

Staff reporter

A scoping study for the CentroGold project is due in the March quarter but, before then, Avanco has whetted investors' appetite with a number of infill hits that have shown both the grade and ounces in the resource base could further increase.
 
The standout was a 51m hit averaging 4.34g/t Au from 95m downhole depth at the high-grade Blanket zone. This included a 12.3m intercept at 13.7g/t Au from 113.7m. The company also drilled out a 17m length at 2.17g/t from 123m downhole depth and 20m at 1.42g/t from 130m.
 
Avanco said this drilling had shown continuity exists both within, and between, approximately 70m-spaced historical sections.
 
The company is not dwelling on these assays, and has already started drilling to upgrade the resource classification at the nearby Contact orebody, with four rigs currently operational.
 
Shareholders will have to wait a little while before finding out the economic impact of these drill assays, with the scoping study only set to include the recent upgrade to the resource base at CentroGold. This showed 1.86 million ounces of gold averaging 1.8g/t in the indicated and inferred categories. 
 
Avanco secured formal control of the 140,000 hectare project in northern Brazil from Jaguar Mining under an accelerated purchase plan in October, and has been focused on the Blanket, Contact and Chega Tudo prospects in one area of a 75km-long greenstone trend.
 
The aim is the development of an openpit mine producing free milling ore and output of 100,000 ounces per annum.

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