The ground, called Pantera and located about 110km from Avanco’s Pedra Branca pre-development asset, can be acquired for $35 million – equivalent to 400,000t at 4c per pound – or at a cost of 4c/lb within the next two years following at least 14,000m of drilling and subsequent estimation of a JORC resource.
Avanco estimates the acquisition cost at $20-35 million.
Resources identified above the 400,000t threshold within the “historical mineralised zone” will incur a higher cost of 6c/lb.
Geologically speaking, Pantera is interpreted as IOCG style, with Vale’s drilling defining 1.5km of continuous mineralisation.
Avanco claims indications are the shear zone in the weste...