Avoca makes new gold discovery at Trident

Emerging gold producer Avoca Resources has delineated a second major high-grade gold discovery at its Trident gold project near Norseman in south-eastern Western Australia.

The company anticipates that economics of the proposed mine development at the site will be significantly enhanced by the new discovery, located at the adjacent Athena Lodes.

The highlight from the recently completed drilling program was the confirmation of the Athena Lodes discovery extending over 500 metres, which returned a drill hole intercept of 13 metres of quartz veining with visible gold.

Avoca managing director Rohan Williams said the results of five recently completed diamond drill holes together with diamond drilling completed last year had confirmed Athena as the second major discovery for the company at Higginsville following the western zone discovery last year, representing an outstanding return on its original acquisition in 2004.

"We are continuing drilling and expect to complete an initial resource estimate by the end of the March 2006 quarter. We anticipate a significant enhancement of our existing resource inventory at Higginsville," he said.

Avoca's broader plan for the Trident project is to complete its definitive feasibility study in August this year, with a view to commencing first gold production later in 2006.

The proximity of the Athena Lodes to the existing development at Trident provides a low capital cost option to access the Athena Lodes.

A pre-feasibility study completed late last year scoped out a profitable 5-year mining development based on a potential mining inventory of 364,000oz.

The company is still assessing the optimal development scenario for the Trident Project including toll treatment, a standalone plant development or a phased combination of both.

Avoca listed on the Australian stock exchange in 2002 and has progressed from a junior greenfields explorer into an emerging gold producer, with projects at Wiluna and Mount Fisher in WA's north-eastern goldfields, as well Kalgoorlie and other projects in South Australia.