Firstly.. as the drawing scaling is different for each cross-section in the announcement, one can be a bit misled. It makes it a bit hard to try and mentally run the three sections together to try and get a feel for what is there.
1. According to the announcement, in bold lettering, "Mineralisation is open at depth on every section." I get the meaning of that to be that wherever a hole was drilled through the alteration zone, copper was intercepted.(true) Thus these holes, which only tested the upper part of the very steeply dipping zone of alteration, did not penetrate into the lower parts as can be readily seen. A heck of a lot more copper may well be present at economic depths yet.
2. It is only the high grade intercepts that are reported in the table and plotted on some sections.
"Where results are reported and intercepts incorporate lengths of "high grade" (in the context of surrounding results), these "high grade" results are detailed separately.... Examples of this exist in the table of drilling results included in this report "
I interpret this to mean that these section high-spots are not stand-alone and that they are merely stand-outs from the surrounding results... i.e. most of the entire zone intercept may have copper to some extent but these are just the high points, isolated and reported!!
3. "Results from all 19 historical holes have been included in this report". And ALL holes hit copper with the "worst" being 10m at 0.67%. in DH-00006. That includes the two outlying holes.
4. Looking at the sections it is possible that grades improve with depth, but a more detailed analysis would be needed to conclude it I think.
5. "Mineralisation at Pantera is comprised of tabular ore zones hosted withing a steeply dipping shear zone". The dictionary says tabular means shaped like a table top. I think they are saying the ore is kind of in sheets with large width and length, in comparison to the thickness... like a table top.? Slabs.
6. The dip angle of the the zone changes from 70 to 75 to 65 degrees as one progresses west to east along the fault.
7. It would be interesting to know where the guy with the 20m deep vertical shaft is finding rich, DSO chalcopyrite. (I presume he is not running his own smelter although I would not put anything past these guys.. then again, what would he do with it?? ). He is listed as being "on the eastern side of Pantera". Within the AVB tenement one presumes. Pretty vague, but then naturally one does not want an army of other people turning up there to start digging... which might include a few enterprising HC's even?
Sorry for the long post but I would like to share my intepretation with everyone to see if I am missing other things, or heaven forbid got it wrong.
OK so the royalty requirements...
1. In Zone.
2% gross(!) revenue to government, 1.5% gross revenue to BNDES, 1% (presumably also gross?) to land owner.
Gross revenue I gather being more expensive than NSR as it does not deduct from smelter revenue the range of costs specified .. it is gross and not net.
2. Outside the mineralised zone.
2% gross(!) revenue to government, 1.5% gross revenue to BNDES, 1% (presumably also gross?) to land owner plus another 1% NSR on top to Vale.
Everyone it seems is getting in for their percentage or cut ...explaining perhaps to a very small degree at least why the tenement was not quite super-expensive.... so maybe there should be a NSR to HC's as well.? after all, everyone else is getting in.
AVB Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
