Impressive results for Avoca at South Kalgoorlie

News Bulletin

Impressive results for Avoca at South Kalgoorlie

Friday, 16 Jul 2010

Following on from the recent acquisition of Dioro Exploration earlier this year Avoca Resources Limited has impressed the market with a significant increase in the identified resources at the old Hampton Boulder Jubilee (“HBJ”) deposit, in between Kalgoorlie and Kambalda. Announcing the news to the ASX Avoca has renamed the opportunity the HBJ Superpit to reflect the now substantial gold endowment captured by conceptual open pit design work. The resource base at HBJ has risen from 0.7Moz (as under Dioro) to 3.0Moz, an increase of over 330%. In addition the company announced that the nearby Mt Marion resource had also been upgraded from 25koz to over 600koz of gold.

These increases now bring Avoca’s total resource inventory up to 6.7Moz, a figure which has industry analysts stating that the company’s goal of producing at the rate of 400koz of gold per annum by 2013 financial year as achievable.

The resource inventory at HBJ stands at 51 million tonnes at an average grade of 1.8g/t gold (3.0 Moz) with maybe the most interesting aspect of Avoca’s work indicating that the deposit, previously thought to be well understood and thus constrained, is in fact potentially open down deep.

Analysis by the Avoca team, which includes Chris Newman, the geologist credited with discovering the company’s corner stone asset Trident, suggests that the gold endowment below the old HBJ pit approaches 10,000 oz of gold per vertical metre, a level considered high enough to warrant economic exploitation by either open pit or underground mining.

It would seem the drawn out takeover battle for Dioro was indeed well worthwhile and no doubt the market will eagerly await the next instalment in the emerging HBJ story.

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