Gold producer Avoca Resources Ltd (AXS:AVO) has announced a significant resource increase at its 100% owned South Kalgoorlie operations.
Avoca upwardly revised the resource from 1.6 million to 4.5 million ounces.
The upgrade is due primarily to a re-estimate of the company’s large HBJ deposit.
A recent scoping study conducted at the HBJ deposit showed a potential mining inventory of almost 750,000 ounces.
The company owns two 1.2 million tonne per annum treatment plants, has reserves of over 1.3 million ounces of gold and a resource base of 6.7 million ounces, in addition to prospective exploration ground.
The company forecasts gold production of 280,000 ounces in fiscal 2011, and has set a target of 400,000 ounces by 2013.
Avoca Resources reported a loss of $16.27 million for the year ending 30 June 2009.
