Ann: Quarterly Cashflow Report , page-25

Thanks for TU's guys.. really appreciated ! sorry for yet another post but this is getting SO interesting now.. at last!

Any discussion between AVB and Vale will happen without delay, so provided it all goes smoothly (as it should) then the outcome cannot be far off being known. That offers a good chance of a big SP rise, depending on how exciting the outcome is. I am hoping it should swamp all those who want to sell into the news and carry AVB SP another notch upwards to settle at a higher level. Also when the Vale announcement comes I would want a long Trading Halt too.... just to build up the tension and adrenalin.

TP has said in the past he wants Vale money to fund mining. Self-funding. No borrowing.

He wanted the Mining Licence and Vale money to converge and he may have just achieved it. Antas South and the shallow DSO in particular cannot be allowed to just sit, for the years it will take to get the big AN mine set up, if indeed this is the location where it will go.

Jumping the gun a bit perhaps?...... but researching the Sept 2010 announcement is very revealing.

This is the 9m at 50%Cu from 18m one. Chalcocite. The DSO is talked about again, and it bears a strong resemblance to today's situation.

It was said that "..with the adjudication and award of mining contracts, and other similar implementation activities expected to continue into the new year, pre-production stripping of the open cut at Rio Verde is forseen as being scheduled for the start of the Dry season (2011)".

This statement can be applied right now. Pre-production stripping will start at the beginning of dry season 2013.

Also "Any direct ship concept offers the advantage of short revenue lead times with low pre-production capital and minimal accompanying technical and commercial risk."

So it is two years late, but this is the way I think it will go. What is not known is whether the rest of the DSO will be "accompanied by concurrent construction and commissioning of a flotation beneficiation plant, funded from out-of-pit copper revenues. "

As the Scoping Study suggested, a $14million/annum profit for the flotation, without later heap leach profit, incl re-processing, and P.M.C.'s It has to be extremely attractive right NOW.

As I said. AVB is at the crossroads. Will it just go on drilling, or will it excite the market by becoming a near-term copper PRODUCER as well?? and funding its own drilling.

And now that Avanco is not alone, it has Xstrata, what help will Xstrata give to the whole operation?

VERY Interesting times ahead. Good luck to everyone! PP