29 May 2009
AVOCA HIGH GRADE GOLD
PRODUCTION CONTINUES
Highlights
?
Record gold production from Trident of 18,149 ounces
for the four week period ending 24 May 2009.
?
Treatment head grade increases to 6.0 g/t with 96,666
tonnes processed and 97.4 % recovery over the four week period.
?
Well positioned to meet production targets for FY2010
ASX 200 mid-tier gold producer, Avoca Resources Ltd (ASX:AVO),
is pleased to announce record production is continuing at the high-grade
Trident gold mine, located south of Kalgoorlie in Western Australia, with
18,149 ounces produced over the four week period to 24 May 2009.
A total of 96,666 tonnes of ore was processed over the
four week period at a head grade of 6.0 g/t gold and recoveries of 97.4%.
The head grade results were achieved with only 48% of the total ore processed
being sourced from the high grade 1005 level Western Zone stope. The
results indicate that the estimated reconciled grade of the 1005 level Western
Zone stope is 8 g/t gold.
Avoca continues to achieve a processing rate at
Trident of between 1.2 to 1.3 million tonnes per annum despite the Trident mill
having a nameplate capacity of 1 million tonnes per annum. The increased
processing rate has not impacted recovery levels, and the head grade and
production levels achieved in the past four weeks leaves Avoca well positioned
to meet its production targets for FY 2010.
Avoca Managing Director, Mr Rohan Williams, said that
the recent production figures auger well for Avoca?s shareholders.
The June quarter is shaping up as a watershed period
for Avoca, with the ramping up of higher gold production, lower cash costs and
stronger operating cash flows.?
We remain confident in our target to produce 180,000
ounces at cash costs of approximately A$450 per ounce in 2009/2010.?
Mr Williams added that Avoca?s management team is
continuing to unlock the significant value in Avoca?s assets by increasing the
amount of gold production out of the Trident mine and developing an exploration
program that targets a number of exciting prospects in the Higginsville area.
These are very good results which demonstrate that our
highly experienced management team is developing Trident into one of
Australia's premier gold mines The strong cash flows generated by Trident
will underpin our aggressive exploration campaign to unlock more value from
Higginsville.?
For further information please contact:
Avoca Resources: Rohan Williams, 08 9226 0625
Purple Communications: Warrick Hazeldine, 08 6314
6300 / 0417 944 616
Please Note:
Not for
dissemination in the United States,
or over U.S.
newswire services.
Avoca Background
Avoca is an ASX 200 gold mining and exploration
company based in Perth, Western
Australia. Avoca has grown rapidly since its listing in
2002, and its acquisition of the Higginsville exploration project in 2004,
located 130km south of Kalgoorlie.
Following the
discovery of the Trident underground gold mine at Higginsville in late 2004,
and the subsequent construction of the Higginsville Gold Project which included
a new 1 million tonne per annum CIL treatment facility built on time and under
budget; it poured its first gold bar on 1 July 2008. The time taken from
exploration project acquisition to gold pour was exactly four years.
Presently, Trident is Western
Australia?s third largest underground gold mine and has
recently commenced mining the thick and high grade 1005 level, which has
contributed to record gold production levels. Avoca remains confident it
will produce 180,000 ounces of gold in FY2010 at a cash cost of A$450 per ounce
(not including royalties).
Avoca has a highly
credentialed management team with considerable expertise in exploration,
project development and underground mining. Avoca?s managing director,
Rohan Williams, has more than 15 years experience in the region having worked
as a geologist at the +15 million ounce St Ives field immediately north of
Higginsville, and the +6 million ounce Norseman field immediately to the
south.
The Avoca Board is
confident that its management team will continue to expand and develop the
existing 1.45 million ounce Higginsville resource base into realising its goal
of a +10 year mine life for Higginsville.
Purple Communications
Level 3, 28
Kings Park Road, WEST PERTH
WA 6005
Ph: 08 6314 6300 Fax: 08 6314 6355
purple@purplecom.com.au