Avanco Resources (ASX:AVB) has released an updated resource estimate on its Brazilian Pedra Branca copper-gold project. Both the East and West zones of the project now contain 1.1 billion pounds copper and 363,000 ounces gold at an average grade of 2.45% copper and 0.61 g/t gold, and this is an 18% increase in the amount of copper due to an 11% increase in the total amount of tonnes and a 7% increase in the average grade.
The confidence in the resource estimate has also been improved as 67% of the tonnes are located in the indicated resource category and this will be the basis for a scoping study and a pre-feasibility study which should be completed within the next 6-8 months. It will be very interesting to see an NPV and internal rate of return on Pedra Branca to find out if this project could work at $1100 gold and $2.5 copper.
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Disclosure: The author holds no position in Avanco Resources. Please see our disclaimer for current positions.
