Avalon Minerals strikes further Swedish copper

THE DRILL SERGEANT: Avalon Minerals (ASX: AVI) has released assay results for seven drill holes from the current drill program being conducted on the D Zone prospect at the company’s Viscaria copper project in northern Sweden.

 

Project location. Source: Company announcement

 

Intersections from the assays include:

–    34.8 metres at 1.2 per cent copper equivalent (CuEq), including 11.2 metres at 1.6 per cent CuEq;

–    38m at 1 per cent CuEq, including 4.3m at 1.7 per cent CuEq and 8m at 1.5 per cent CuEq;

–    28.25m at 1 per cent CuEq, including 4m at 2 per cent CuEq;

–    15.42m at 1 per cent CuEq, including 3.42m at 2.1 per cent CuEq; and

–    10m at 1.5 per cent CuEq, including 3.6m at 2.3 per cent CuEq.

Avalon said the ongoing drill program will comprise approximately 25,000m of drilling, with the objective of extending the known Mineral Resources at the A and D Zone prospects.

It is also aimed at delivering on the potential increases to the project’s Net Present Value (NPV), which was outlined in a Scoping Study that was completed at Viscaria in October 2012.

“These latest results have extended the known mineralisation at D Zone and are consistent with previous drilling results, which defined two thick, high-grade copper-iron mineralisation zones,” Avalon Minerals managing director Jeremy Read said in the company’s announcement to the Australian Securities Exchange.

“It is a very positive outcome that these thickened higher grade zones are continuing at depth with no sign of diminishing.

“This suggests there is excellent potential for the D Zone Mineral Resource to be significantly extended at depth.

“This would enhance the economics of the D Zone Mineral Resource and deliver the Development Cases A and C, which would result in a $78 million increase to the NPV of D Zone, to $126 million.”