Avanco Resources has announced that its board has approved $10.6m to advance its exploration and project development programme in Brazilian assets, fully funded from cash-flows.
According to the approved budget, $1m has been allocated for drilling activity at Antas project and a further $3.6m for sustaining capital and improvements at the property.
The Antas project is located around 25km from Parauapebas city in Brazil.
The exploration programme to be conducted at this property includes 5,000m of diamond drilling. The drilling campaign is expected to start at the end of this month and continue until July.
It will focus on extensional and infill drilling on new sections to increase JORC Resources and upgrade the confidence of existing JORC probable mineral reserves to proven status.
Drilling at the project is expected to increase JORC Mineral Resources and Reserves for potential improvement in production and mine-life.
In addition, the budget will fund $4.4m to conduct a definitive feasibility study (DFS) and additional exploration at the PedraBranca East Project.
The PedraBranca Project is located about 50km from the Antas deposit. The exploration programme will assist the full-scale development of the mine. The DFS is scheduled to begin from next month and is expected to take around 12 months to complete.
The board has also approved $900,000 to advance the Centro Gold Project, which is situated in the neighbouring Maranhão State, and $700,000 for exploration and investigation in new acquisition opportunities at the Carajás property.
Avanco Resources executive director of exploration Simon Mottram said: “Over the last decade Avanco has accumulated an exciting portfolio of projects and tenements in the Carajás, a premier mineral province for the exploration and development of high-grade copper mines.
“Today, we find ourselves in a unique position; we hold the second largest copper tenement land package in the Carajás, our first mine is in production, generating free cash-flows, with no debt, which leads us to believe that we uniquely positioned to deliver growth into an improving copper market.
“As a result, management has renewed confidence in its aspirations to become a 50,000t a year copper producer, with further optionality upside.”
The allocated budget also includes a minimum 5,000m infill drilling, appointment of a DFS Study Manager and regulatory and environmental works to allow the full-scale mine.
Currently, a scoping study re-analyse its scale and economics through multiple development opportunities is underway to evaluate two contiguous higher grade zones. Results are expected to be released in late April this year.