Dundee’s Avala Resources junior mining company, developing copper-gold Lenovac project in East Serbia, announced the start of drilling on its project activities based on the JV agreement with Rio Tinto.
Avala Resources Ltd. reported on the commencement of diamond drilling on its Lenovac exploration license . The Lenovac Project is subject to an earn-in and joint venture agreement with Rio Tinto Mining & Exploration Limited .
This initial drilling program consists of a single diamond drill hole targeting deep geophysical anomalies derived from the CSAMT (controlled source audio-frequency magnetotelluric) survey completed during the summer of 2015. The planned depth of this initial hole is 1000m and is expected to be completed by mid-January 2016. The cost of the program will be funded by Rio Tinto as project expenditure pursuant to the terms of the Earn-in Agreement.
The Lenovac Project consists of the 100%-held Lenovac license, granted to the Company in 2013. The license covers 132 km2 and the project area is strategically located 10km due south of the Reservoir Minerals/Freeport-McMoran Cukaru Peki high-sulphidation epithermal and porphyry copper-gold discovery, along the eastern margin of the Timok Magmatic Complex. Surface geology is dominated by volcanic derived epiclastics (with occasional mineralized clasts) and other sediments that are interpreted as being post-mineral with respect to the mineralization observed at Bor.
To date, exploration efforts have focused on the potential for a mineralized system to be located beneath exposed post-mineral cover. The Company has carried out early stage exploration work on the Lenovac license, including detailed stratigraphic and structural mapping, as well as a CSAMT geophysical survey consisting of 28 line km. Interpretation and modelling of the resulting resistivity data has indicated a number of deep structural corridors bounding a deep resistive feature. These anomalies are all viewed as potential exploration drill targets.
Avala Resources is a mineral exploration company focused on the exploration and development of gold and copper projects in Serbia. The Company’s keys projects are the Timok Gold Project which comprises the Korkan, Bigar Hill and Kraku Pester deposits, the Tulare Project which comprises the Kiseljak and Yellow Creek porphyry copper-gold deposits, and the Lenovac Project in the southeast of the Timok Magmatic Complex.
The common shares of Avala trade on the TSX Venture Exchange under the symbol ‘AVZ’. Avala’s issued and outstanding share capital totals 43,598,138 common shares, of which approximately 50.1% is held by Dundee Precious Metals Inc. (TSX: DPM).