Avoca Resources (ASX:AVO) has unveiled a sharp increase in gold resources at its South Kalgoorlie operations.
It revised resources from 1.6 million to 4.5 million ounces. This is a 174 % increase in the total resources of Avoca. This coupled with a forecast of gold output of 400,000 ounces in 2012-2013 has resulted in a rise in share prices for Avoca.
This new forecast is based on a recent scoping study which was completed at the company's large HBJ deposit. The Perth based gold producer is also hitting gold in the stock market with its shares jumping almost 10 percent when markets opened on Thursday. At 1:00PM EST, Thursday shares were trading at $2.77.
Avoca managing director Rohan Williams said that they were delighted with the results of the new resource estimate for HBJ and Mt Marion. The company also owns two treatment plants which process 1.2 million tonnes per annum. It also has reserves of about 1.3 million ounces of gold along with a resource base of 6.7 million ounces.