Avoca is confident of continuing to build its resource inventory at Higginsville, having previously reported high-grade intersections at the 95,000oz Poseidon South Extended deposit, only 70m west of the new find. The company has combined the two zones under the name Trident, with the latest intersections recorded in the western zone.
New drill intercepts include 12m grading 11.4 grams per tonne gold from 324m depth, 9m at 11.1gpt gold from 276m and 5m at 14.2gpt gold from 296m.
Avoca managing director Rohan Williams said the western zone displayed excellent continuity of high-grade mineralisation and remained open along strike to the north. It had significantly upgraded the resource and development potential of the project.
“The new discovery has no surface expression and is open along strike. The western main lode intersections represent the thickest and highest grade lode structure intersected to date at Higginsville and provide an excellent opportunity to substantially increase the high grade resource ounces of the project.”
Williams told MiningNews.net he was hopeful the western zone could be developed via the access to the eastern zone, which had a resource of 202,000oz. He said estimated development costs to bring the project online remained at about $4 million.
Costs would firm up after Avoca had drilled out the western zone and completed a new mine design. Williams said he hoped to have the resource drilling started before Christmas and completed early in the new year.
The company is aiming to bring the project online by mid next year, initially targeting production of 40,000oz per annum over the first 2-3 years.
“If there is a delay [in production] it is for a very good reason – because there is more ore there than we thought there was,” said Williams.
“You make your own luck in this game and I firmly believe this discovery has come about by excellent geology.”
Avoca bought the project from major shareholder Gold Fields earlier this year for $4.5 million (including $2 million worth of shares), with further staged cash payments totalling $1.75 million due upon the delineation of 150,000oz of reserves.
Avoca shares jumped nearly 20% on the news gaining 3.5c to 21.5c in midday trade.
