🕐12.01.11 - 23:54 Uhr

Avanco Resources [ASX: AVB] - Iron ore update, Brazil



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Avanco Resources [ASX: AVB] - Iron ore update, Brazil

Avanco Resources (ASX: AVB) has obtained the required permissions for drilling at the Trindade North Iron Ore Project in the Carajas.

The drill programme will be undertaken by Brazilian major Vale SA (Vale) and rig mobilisation is expected over the coming weeks.

Highlights:

* Trindade North is situated proximal to Vale�s giant N4-N5 iron ore mine in the Carajas, Brazil.

The area is very prospective for new iron ore discoveries.
* Vale has been granted exclusive exploration rights and can earn the right to exercise an option to acquire sole ownership of the property.
* Vale will advance Avanco US$250,000 for facilitating drilling permissions.
* The Vale transaction has the potential to deliver significant cash flow to Avanco of US$10m to US$40m
* Vale is expected to start drilling soon and regular news is anticipated over the coming months.

Exploration of Trindade North has been ceded to Vale through the previously reported option agreement.

On satisfactory completion of drilling, resource determinations and payment of US$10m to $40m, Vale will have satisfied conditions precedent and will have earned the right to 100% ownership of Trindade North.

Please refer to the attached announcement for more details.

For further information, please contact:

Tony Polglase
Managing Director
E-mail:
Tel: +61 8 9321 6600

Media:
Fortbridge
Tel: +61 2 9331 0655
Luke Dean: +61 414 535 433


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