Major share holders and minor are expecting a multi bagger out of AVB. Hence, building a multi stage producer is the target. Further drilling is required to find stage 3 but the amount of work required to advance their knowledge and assist more accurate targeting of the next big thing is probably less expensive than drilling out the infill campaign at PB. ( Keep in mind it may only be a matter of a few weeks before they start that anyway).
AVB currently hold a HIGHLY prospective group of tenements that they have put a lot of work into in the back ground. They will have worked out which tenements are worth pursing and which to leave alone at least for now. With the select group of tenements that are considered high grade prospects, they will have existing exploration permits which typically last 3 years. If they don't do sufficient development work to warrant further exploration the DNPM (Brazilian mining dept) will not allow extensions on the tenements. They lose them. Even if worthy of the extensions on tenements they become more costly to hold as the fees increase as the period of holding increases. The second 3 year lease is usually 50% dearer per hectare. If they are large tenements it's a double edged sword; more potential copper but greater fees as well.
So, in summary, they have to manage costs on multiple levels whilst maximising potential of finding further stages and the time factor is important. Besides we all want another million tonnes
AVB Price at posting:
9.0¢ Sentiment: Buy Disclosure: Held
