BUILDING A COPPER COMPANY IN BRAZIL. Mines and Money Asia Hong Kong

Transcription

1 BUILDING A COPPER COMPANY IN BRAZIL Mines and Money Asia Hong Kong

2 Strengths The Company Avanco Resources Limited is a Brazilian focussed copper company. Highly experienced Board and management team. Avanco (AVB) listed on ASX 13 December The Company has demonstrated rapid progress and confirmed the discovery of a significant copper oxide deposit at its 100% owned Carajas Copper Project in northern Brazil.

3 Brazil Profile Stable economy and large labour pool. South America s first economic power and regional leader. One of the most prospective country s in the world for copper discoveries. Authorities are pro-mining. Investment environment offers outstanding opportunities.

4 Company Profile 55 million shares on issue. Shares have traded in the range of AU$0.35 to AU$0.67. Last traded at AU$ million listed AU$0.20 options on issue. Options last traded at AU$0.22. Fully diluted market cap of approximately AU$48Million AU$2.2 Million in cash

5 Avanco Hatched - June 2007 Matthew Wood (Chairman) and Tony Polglase (Managing Director), in the Carajas on an outcrop of Copper oxide.

6 Outstanding Capability Deliverable - Quality Name Position Corporate M Wood Chairman Management and Drive A Polglase Managing Director Exploration A Madalosso Exploration Manager Mining and Focus C Jones Director Metallurgy and Ingenuity W Phillips Director Legal and Regulatory L Azevedo Consultant Three Avanco Directors speak Portuguese and reside in Brazil

7 Copper in the Carajas The Carajas is regarded as one of the most prospective mineral provinces in the world for copper, nickel, iron and manganese. Vale dominates the province and are investing approximately US$17.6 Billion in the Carajas over the next five years. The Carajas hosts approximately 2,500 Million tonnes of Copper ore at 1% with Sossego the only operating copper mine. Vale plans to develop the giant Salobo Copper Deposit. Other explorers in the Carajas include: Codelco, Xstrata, Anglo American and Teck Cominco.

8 Carajas Copper Project The Rio Verde property has six known copper targets including the Antas South Discovery. Serra Verde property has a historic high grade copper open pit mine Rio Verde and view to Antas South

9 World Class Carajas Province

10 Carajas Copper Exploration Avanco s success in the Carajas is underpinned by renown Brazilian geologist Antonio Madalosso, who leads exploration activities. Drilling on the Rio Verde property commenced in January 2008 and discovered the Antas South oxide copper deposit in April. Avanco is now moving to full drill out of the Antas South Deposit and will also start drilling additional copper oxide targets.

11 Significant Copper Oxide Discovery Confirmed at Antas South

12 Drilling Programme Currently two drilling rigs operating on the Rio Verde Property. Third drilling rig due to commence in August Drilling will be continuous throughout Better drilling results include: 53m at 0.89% Cu from 0 metres 58m at 0.66% Cu from 0 metres 12m at 1.29% Cu from 32 metres 12m at 1.36% Cu from 0 metres 69m at 0.45% Cu from 0 metres 32m at 0.63% Cu from 0 metres 56m at 1.26% Cu from 0 metres

13 Drilling at Antas South Reverse Circulation Drilling Diamond Core Drilling

14 Carajas Copper Project Rio Verde represents a premier location for rapid implementation of copper production Shallow Drilling at Antas South Copper Oxide Deposit

15 Antas South Discovery A Company Maker A series of shallow copper oxide open pits will benefit from low cost free digging mining activities. Vat leaching will improve copper recovery and overcome process interruptions associated with rainfall. The Rio Verde property offers the potential to bring on line a pipeline of neighbouring copper deposits to capitalise on common infrastructure and services. First copper production targeted for 2010.

16 Copper Oxides Mean SX-EW Brazilian Copper Cathodes Vat leaching / solvent-extraction and electro-winning means less capital and a rapid build program

17 Avanco s Red Metal World demand for copper increasing. Blue chip producers under pressure due to lack of exploration. Major miners are going underground, capex and opex will increase squeezing supply line even further. Copper production from oxides anticipated to increase by 10% per annum. Brazil is a net copper importer, Avanco s Copper Cathode will a attract a premium on LME.

18 An expanding portfolio of opportunities Expanding copper footprint in the Carajas Province. The Trindade properties were recently acquired. Initial exploration has commenced. Gold exploration Project located in central Brazil. Lead-Zinc Project in north east Brazil. Iron and Manganese Projects being advanced towards a possible spin out IPO in 2008.

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20 Summary Brazil is good for business, good for copper and the realisation of mining projects. Avanco has a clear strategy aimed at early production of copper, through the development of low cost copper oxide deposits. Targeting a 100Mt copper resource portfolio by the end of Targeting first copper production in The Company anticipates further strong news flow off the back of the current aggressive drilling program.

21 Inquiries and further information Tony Polglase Managing Director The information in this report that relates to Mineral Resources and Exploration Results are based on information compiled by Mr Matthew Wood who is a Member of the Australian Institute of Mining and Metallurgy. Mr Wood is the Chairman of Avanco Resources Limited. Mr Wood has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Wood consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.