Avalon Minerals Heats Up In Ecuador
THE INSIDE STORY: Avalon Minerals (ASX: AVI) is well-endowed when it comes to its portfolio possibilities.
Avalon Minerals has three impressive projects in its portfolio, including the Viscaria copper project in Sweden, the Southern Finland gold project, and its recent entry into the Bramaderos gold-copper concession in southern Ecuador.
The Viscaria project is an advanced project with a Mineral Resource of 52.4 million tonnes at 1.2 per cent copper for 609,000 tonnes contained copper.
A scoping study in 2016, based on a two million tonnes per annum combined open pit and underground operation, predicted production at Viscaria of 21,000 tonnes per annum copper in concentrate.
In a research note, Hartleys said the study demonstrated positive returns at Viscaria at a copper price of US$2.75 per pound.
“Hartleys’ modelling suggests a mining inventory discovery for D-Zone, of 8 million tonnes at 2.2 per cent copper, between 400 and 800 metres vertical depth, with an average lode width of 5 to 7 metres, would make Viscaria viable at +US$2.80 per pound copper,” Hartleys said in its January research note.
“Average unit (C3) costs under this assumption are estimated at $US2.10 per pound, which is mid-supply cost curve for global copper.”
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Avalon is drilling at Viscaria to progress an area from the old Viscaria Mine to a target interpreted as a northern extension of the D Zone orebody, and then test a southern shoot at D Zone.
Ground magnetic surveys reinforced targets and identified additional targets along the D Zone horizon that will be modelled and considered for drilling.
“We consider Viscaria to be greatly undervalued, however, if we are going to progress to a decision to mine we may require a partner to assist,” Avalon Minerals managing director Malcolm Norris told The Resources Roadhouse.
“We’ve received interest from several entities, simply because at US$3 per pound copper, Viscaria could deliver around US$50 million EBITDA per annum, making it an extremely attractive proposition.”
Avalon broadened its portfolio with a Farm-In to earn a majority interest in the highly-prospective Bramaderos gold-copper concession in Ecuador in partnership with Cornerstone Capital Resources, which holds a minority stake in the Cascabel porphyry copper-gold deposit in northern Ecuador.
The deal is an ideal fit for the company, given Avalon’s management team played key roles in the discoveries of the giant Tujuh Bukit copper-gold porphyry deposit in Indonesia, and the Cascabel copper-gold porphyry deposit in Ecuador.
The Avalon team is also no stranger to its partner, Cornerstone with which it has worked previously on other projects in Ecuador.
That strong relationship with Cornerstone was key to Avalon’s return to Ecuador and the ability to undertake focussed efficient exploration in a country booming with mineral explorers and developers including Australian companies SolGold, Newcrest, BHPB, Fortescue and Hancock Prospecting.
Both Avalon and Cornerstone believe Bramaderos presents an opportunity to repeat discovery successes and deliver exceptional shareholder returns.
“We see Bramaderos as a very important component to our future direction in terms of big upside from a big project and it is exactly aligned with the skill set in the team,” Norris explained.
“We have a couple of big porphyry discoveries under our belt and we’re off to try and do it again.”
The Bramaderos project is a 2.5 hour drive from the city of Loja along the sealed Pan-American highway and is serviced by a hydro power line (110V and 220V) that passes through the property area.
The Bramaderos property measures 11 kilometres from north to south, and is 7km at its widest point.
The area hosts several discrete areas of mineralisation, alteration, brecciation and quartz veining occur, several of which Avalon Minerals considers to be highly prospective.
Historical results from drilling at Bramaderos include wide intervals such as 260m at 0.6g/t gold and 0.14 per cent copper, from which Avalon has determined exploration drilling targets can be defined quickly and with permitting, drilling can be expected to start in late 2017.
Avalon’s Southern Finland gold project has not been left out where an Induced Polarisation (IP) geophysical survey at the Satulinmäki gold prospect identified several highly rated local and regional targets.
The next phase of drilling will target definition of high-grade zones in the shallow parts of the Satulinmäki gold system.
Avalon Minerals Ltd (ASX: AVI)
…The Short Story
HEAD OFFICE
9 Gardner Close
Milton, QLD, 4064
Ph: +61 7 3368 9888
Email: info@avalonminerals.com.au
Web: www.avalonminerals.com.au
DIRECTORS
Graham Ascough, Malcolm Norris, Crispin Henderson, Don Hyma