good summary

Not sure if this has been posted before but it's a good overview of AVBs assets and activities. It's taken from another website's forum and credit goes to happytrader for the original post on 10th Jan. Sorry that I couldn't include the pics; they weren't visible to me even on the other site.

Des

***********************************************************

AVB currently has 5 projects, all based in the Carajas Mineral Province of northern Brazil:

1. Rio Verde Cu Project (100%);
2. Serra Verde Cu Project (100% #);
3. Trindade North Fe Project (100%, Vale option to acquire);
4. Trindade South Ni Project (100%);
5. Southern Carajas Ni-Pt Project (earning up to 75%).

Avanco has recently commenced a major drilling program (see ann dated 24/11/10) totalling 50,000m across their various projects, comprising:

25,000m @ Antas Sth Cu deposit - drill out and extensions
10,000m @ Rio Verde - new Cu targets
5,000m @ Serra Verde - Cu targets
5,000m @ regional Cu targets - new projects
5,000m @ Ni and Pt targets

1. Rio Verde Cu Project

Rio Verde (10km x 9km, 9,300ha) contains the Antas South Cu shallow oxide deposit, with an overall jorc indicated and inferred resource estimated in Jan 2009 at 8.0Mt @ 0.83% Cu for 66,100t Cu using 0.3% Cu cut-off (incl a high grade zone estimated at 0.21Mt @ 11.65% Cu for 24,400t Cu), based on 138 holes (73 diamond core holes for approx 5,200m and 65 RC holes for approx 3,200m), drilled on a nominal 100m x 25m spacing. The Antas South deposit extends over 2km strike length and is open along strike (to the NW and SE), with the high grade zone extending over 250m and open to the NW (Cu outcroppings at surface not included in jorc resource) as well as to the SE at depth (see ann dated 12/01/09).

The Cu oxide exploration target at Antas South is currently 20Mt @ 0.8% Cu overall, with 0.5Mt of mineralisation in the high grade zone. The shallow Cu oxide deposit at Antas South extends from surface to approx 80m depth, with the potential for Cu sulphide mineralisation below the oxide orebody. The Antas North non-jorc deposit (1km N of Antas South) is believed to be Cu sulphide mineralisation overlain by a "significant Cu oxide zone" yet to be fully explored, with one hole at Antas North returning 49.3m @ 2.4% Cu (from unreported depth) (see ann dated 30/04/09 - March qrtly). However, drilling at Antas North encountered difficulties with core recovery, due to ground conditions, and after 10 holes in 2008 drilling was suspended (see 2008 Ann Rep).

2008 drill results at Antas South (and included in 2009 jorc resource) incl:

11m @ 1.65% Cu from 40m [2m @ 7.05% Cu from 48m] (030);
12m @ 1.36% Cu from surface (09);
56m @ 1.26% Cu from surface (021);
20m @ 1.24% Cu from surface (027);
14m @ 1.17% Cu from surface (046);
10m @ 1.13% Cu from surface (031);
12m @ 1.11% Cu from 36m (08);
57m @ 1.07% Cu from surface [19.4m @ 1.91% Cu from 36m] (032);
26m @ 1.02% Cu from surface [8m @ 1.63% Cu from 2m] (08);
16m @ 1.0% Cu from 36m (012);
53m @ 0.89% Cu from surface [19m @ 1.99% Cu from 4m] (01);
62m @ 0.84% Cu from surface [32m @ 1.17% Cu from 20m] (045).

2008 drill results from the Antas South high grade zone (and included in 2009 jorc resource) incl:

38m @ 7.49% Cu from surface [14m @ 18.99% Cu from 22m] (017);
26m @ 5.47% Cu from 18m [6m @ 21.02% Cu from 32m] (024);
20m @ 5.12% Cu from 13m [4m @ 21.53% Cu from 17m] (049) (see for eg ann dated 17/09/08, note hole depths ranged from 21-75m AC/RC).

1.jpeg 2.jpeg 3.jpeg

2010 recently completed 34 hole, 2,000m diamond core drilling program at Antas South high grade zone proved the high grade zone extends over 300m laterally and remains open along strike and at depth (with indication of likely presence of second high grade zone to the north of the current high grade zone) with results, above 6.0% Cu, incl:

0.65m @ 35.88% Cu from 51.35m (094);
1m @ 24.5% Cu from 40.6m (087);
1.3m @ 17.98% Cu from 63m (089);
32m @ 14.79% Cu from 1m [9m @ 50.49% Cu from 18m] (080);
7.25m @ 14.26% Cu from 49.75m [2.05m @ 42.68% Cu from 49.75m] (085);
1m @ 14.0% Cu from 44m (081);
1m @ 10.89% Cu from 52m (069);
3m @ 10.85% Cu from 58m [1m @ 23.6% Cu from 58m] (086);
2m @ 8.09% Cu from 28m [1m @ 11.83% Cu from 28m] (074);
6.15m @ 8.06% Cu from 38m [3.85m @ 11.23% Cu from 40.3m] (072);
2m @ 6.93% Cu from 46m (096);
3m @ 6.75% Cu from 39m (092);
1.05m @ 6.53% Cu from 25.4m (098) (see ann dated 12/10/10, note hole depths ranged from 35-82.7m).

A jorc resource upgrade for the Antas South high grade zone is overdue and is expected to increase the resource tonnage as well as upgrade the resource from indicated and inferred to measured and indicated ("ready to mine status") (see ann dated 30/04/10 - March qrtly).

The current 25,000m Antas South drilling program (the combined 2008 and 2010 drilling programs totalled approx 10,400m) is initially focussing on drilling out and expanding the high grade zone (see ann dated 08/11/10) which is open along strike and at depth (supra). It is then likely to test for 3 other potential high grade zones (incl one considered likely, supra, approx 250m N of current high grade zone) indicated in previous anns (see for eg ann dated 22/07/09, figure).

Avanco released a scoping study on the economics of mining at the high grade zone in early 2010 outlining a plan to mine approx 20Kt of 25%+ Cu (oxide) as dso "out-of-pit" product, sales of which will enable it to self-fund (in the second year of mining) a 6,000tpm (sulpihide) second-hand flotation beneficiation plant to produce approx 5,000t pa 20%+ Cu concentrate. The study only dealt with the first six years of mining the high grade zone, with the following results (based on Cu price US$2.50-3.00/lb):

Total capex US$12.4M (incls US$2M pre-production capex being access, pre-strip (6:1 strip ratio), site establishment);
Total revenue US$120M;
Total cost of sales US$50M;
Cashflow (NPV=0) before interest and taxes US$57M;
Mining and processing opex US$51/t ore;
Total cash cost (excludes precious metals credits) US$1.70/lb Cu.

The dso "out-of-pit" operations can commence on approval of the trial mining licence (see ann dated 08/02/10), which the comapny was expecting to receive by the end of 2010 (see ann dated 30/07/10 - June qrtly). An updated study was expected to be finalised and able to support a "decision to mine" also by end of 2010 (see ann dated 21/09/10).

The recent $20M capital raising, "massively oversubscribed", states that the use of funds will go toward, inter alia, "development studies" $1.5M and "working capital" $2.3M (see ann dated 08/11/10). Possibly the overdue jorc resource upgrade/increase and the updated economic study might await the results of the current 25,000m drilling program at Antas South, to include them.

Obviously a significantly improved Cu price combined with an upgrade and increase in the jorc resource of the high grade zone will impact on the revised economic study.

Pre-production stripping is expected to commence at the high grade zone at the start of the dry season in 2011 (see ann dated 21/09/10), with the dry season running from July to October (see NI 43-101 Technical Report for INV Metals dated 27/10/10).

The 10,000m Rio Verde new Cu targets drilling program will be targetting the Antas North deposit and four highly prospective prospects identified through Cu outcrops and subsequent soil sampling program, namely Paulinho, Lazinho, Clovis and Capivara, with Clovis in particular recording up to 2,000ppm Cu in soil sampling (see for eg Investor preso Oct 2008). Capivara is proximate to a potential high grade zone (see for eg ann dated 22/07/09, figure). None of the four prospects, Paulinho, Lazinho, Clovis or Capivara have yet been drill-tested.
4.jpeg
The map below shows the drill targtets at Rio Verde (Antas South is the large red dot), as well as Serra Verde and the surrounding properties/tenements (Vale light green; Xstrata light blue; Teck Cominco/INV Metals light pink; Anglo American yellow; Lara Exploration brown/orange; Colossus minerals bright green; Others white - see Lara corporate preso November 2010).
5.jpeg
2. Serra Verde Cu Project

Serra Verde (7,500ha), approx 2 km N of Rio Verde, contains the abandoned historic Garimpo open pit mine where more recent channel sampling results carried out returned high grade results, incl:

4.5m @ 16.50% Cu and 4.1 g/t Au;
4.3m @ 8.92% Cu and 48.4 g/t Au;
2m @ 7.77% cu;
2m @ 7.02% Cu;
9m @ 5.81% Cu and 4.48 g/t Au;
9.6m @ 3.44% Cu and 3.29 g/t Au.

Avanco believes the experience and knowledge they have gained in drilling out the relatively narrow Antas South high grade zone structure will benefit in the understanding of the potential for remnant high grade Cu mineralisation at the open pit.

Two other Cu prospects at Serra Verde are the Alagoana and Pedro targets. The Alagoana target is a 1,500m NW trending Cu soil anomaly that has returned rock chip sampling up to 22.57% Cu, however previous wide-spaced drilling failed to intersect high grade Cu mineralistion, resulting in the need for tighter Antas Sth style drill spacing. The Pedro target, yet to be drill-tested, is a 2,500m NW-SE trending Cu soil anomaly connecting with the open pit (see ann dated 17/08/10).

The 5,000m Serra Verde Cu targets drilling program will likely test the open pit at depth and along strike, as well as Pedro and Alagoana.

Avanco does not discount the potential for the discovery of a large IOCG type deposit, similar to that which TSX-listed INV Metals (in jv with Teck Cominco) is exploring for in their Rio Novo tenements (28,937ha) immediately adjoining the northern boundary of Serra Verde. The Carajas mineral province hosts 5 of the top 10 IOCG deposits (proven and probable reserves) on the planet (Salobo 789Mt @ 0.96% Cu and 0.52 g/t Au; Sossego 355Mt @ 1.1% Cu and 0.28 g/t Au; Cristalino 500Mt @ 1.0% Cu and 0.3 g/t Au; Igarape Bahia 219Mt @ 1.4% Cu and 0.86 g/t Au; Cento e Dezoito (118) 170Mt @ 1.0% Cu and 0.3 g/t Au). Serra Verde open pit is described as IO(poor)CGMo (similar to mineralisation in the Cloncurry district), a small deposit previously subjected to small-scale mining by garimpeiros, that form in association with large-tonnage (low grade) IO(rich)CG mineralisation, but tend to be relatively small though high in grade. The previous mining focussed on two 20-30m long CuFe rich massive sulphide lenses, composed of 85% chalcopyrite, grading 0.5-1.0 g/t Au. Two targets drilled by Teck, RN-1 (approx 3km N of Serra verde) and RN-6 (approx 1.5km N of Serra Verde) have been interpreted as Sierra Verde style mineralisation and returned results (from RN-1) incl 55m @ 1.3% Cu and 0.2 g/t Au [30m @ 2.0% Cu and 0.32 g/t Au], 64m @ 0.94% Cu [21m @ 1.74% cu and 0.32 g/t Au], 47m @ 0.55% Cu [15m @ 0.94% Cu and 0.22 g/t Au] (all from unreported depths) (see NI 43-101 Technical Report for INV Metals dated 27/10/10)

# Note, whilst the Serra Verde Project is subject to a potential "back-in" to 51% by Barrick Gold, Avanco does not believe this will occur (see Avanco website).

3. Trindade North Fe project

Trindade North (4,966ha) is thought to be highly prospective for economic grades of iron ore, with aeromag surveys indicating two potential BIF targets with a combined strike length of approx 7km near the northern boundary. Rock chip sample results incl 54.2% Fe and 50.2% Fe. The property is surrounded by Vale (the largest iron ore producer on the planet) and next door to Vale's N4-N5 Serra North mine (biggest iron ore mine on the planet) and has Vale's iron ore railway running through it to the coast.

Vale has signed an option with Avanco to acquire the Trindade North property on the following terms:

On receipt/signing of regulatory permission to drill at Trindade North, Vale will pay Avanco US$350K (non-refundable) for a 2-year option;
Vale to drill at least 2,500m at Trindade North within first year;
For second year of option Vale must pay Avanco US$600K (after first year);
To retain and extend option for third year Vale must pay Avanco US$1M;
Vale will pay Avanco a royalty for any in-situ measured and indicated jorc resource estimated from drilling;
Once Avanco has received US$10M (estimated), courtesy of all the above, from Vale, Vale can complete the 100% acquisition of Trindade North (payments to Avanco are capped at a maximum of US$40M);
Any non-Fe economic mineralisation discovered will involve renegotiation of terms (Vale right of first refusal) (see ann dated 19/08/10).

Vale has paid Avanco an inital payment of US$100K toward the non-refundable initial $350K payment and provided details of the proposed drill collar locations, awaiting only the regulatory approvals for drilling to begin and further payment of US$250K (see ann dated 29/09/10).

With the potential of US$10-40M cashflow to Avanco from this deal, it will assist in Avanco's goal of becoming a self-funding leading Carajas junior explorer/producer.

4. Trindade South Ni Project

Trindade South (15,000ha) is thought prospective for Cu, Ni and Fe and is located approx halfway between Vale's Ounca-Puma Ni mine and the Vermelho Ni deposit, and contains the Touro Ni Project. Previous single hole exploration at Touro (no Ni assaying) results 9m @ 0.12% Cu from 139m and 5m @ 0.28% Cu from 288m and previous geochem soil sampling at an extensive Ni soil anomaly produced results up to 2,192ppm Ni, 846ppm Cu and 26ppb Pt (see ann dated 30/07/09 - June qrtly).

Avanco has carried out two drilling programs at Touro, the first in Oct 2009 was a single diamond core hole to a depth of 430.1m testing the Ni soil anomaly (supra) associated with a high quality EM anomaly, intersecting a variably sulphide mineralised differentiated mafic sill (approx 5km x 1.5km) (see ann dated 26/10/09 - September qrtly). The hole intersected 130m @ 0.09% Ni from 282m, a "highly encouraging" result, coupled with an IP survey run over the sill detecting strong IP anomalies considered high priority drill targets, ground magnetic survey defining a 4km long magnetic anomaly and soil geochem sampling indicating existence of extensive Ni soil anomaly over 4km long aligning well with the magnetic anomaly (both trending EW to ENE), with Ni values up to 2,000ppm. Together these are thought to highlight the geological similarities to the giant Santa Rita Ni Project in NE Brazil (see ann dated 18/01/10).

The second, a 10 hole, 2,000m diamond core program to test the IP and Ni-Pt soil anomalies over 2,400m of strike along the sill (see ann dated 11/03/10). Due to widespread flooding drilling had to be suspended after 4 holes for 722m were completed, with results over 2m intervals up to 0.38% Ni, 0.05% Cu, 17ppb Pd, 30ppb Pt and 108ppb Au. Economic grade mineralisation is believed more likely within the footwall contact zone of the sill, N of the completed holes, with EM surveys and geochem soil sampling to be undertaken to determine new drill targets.

Avanco has signed confidentiality agreements with a number of groups re potential joint junding future exploration at Touro (see ann dated 13/05/10).

The 5,000m Ni and Pt targets drilling program may test the footwall contact zone as descibed supra.
5. Southern Carajas Ni-Pt Project

7.jpg

Southern Carajas Conceicao licence block (approx 47,000ha) comprising four granted blocks and three blocks the subject of applications and is thought prospective for Ni, Cu, Pt massive/semi-massive sulphide mineralisation and Avanco has agreed to terms with TSX-listed Lara Exploration to earn 75% interest in the project by:

Upon regulatory drilling approval, undertake 1,500m drilling within 1 year;
Generate jorc resource within 3 years;
Provide expl report and maintain good title (see ann dated 29/10/10).

Both Xstrata (then Falconbridge) from 2005-07 (jv withdrawal attributed to Xstrata takeover of Falconbidge in 2007) and Teck Cominco from 2007-08 (jv withdrawal attributed to GFC effects, although Teck stated the expl results weren't encouraging enough) had been jv partners with Lara at the four granted Conceicao licence blocks (as part of jv's with Lara over Lara's Araguaia Project which also incls the Vila Oito and Floresta licence blocks) and undertook various levels of exploration (incl surveys and drilling).

Exploration at the four granted Conceicao blocks consisted of:

Soil gridding survey during reconnaissance prospecting in 2005 by Xstrata;
Heli VTEM survey over central part of block in mid-2006 by Xstrata;

9.jpg

Regional mapping, rockchip sampling, re-interpretation of Xstrata survey data, selection of target anomalies (Sul do Baiao near the northern boundary of the northernmost block and D grid on the southern boundary of the southernmost block) for drill testing in 2008 by Teck;
Auger drilling and one diamond core hole were carried out at D grid and one diamond core hole at Sul de Baiao by Teck in 2008;

10.jpg

Ground surveys were to commence on EM targets selected from Xstrata VTEM survey by Teck just prior to jv withdrawal;
Ground surveys were carried out to review the Xstrata and Teck fieldwork indicating disseminated Cu-Ni sulphides in mafic intrusives and the Cu-Ni gossan anomaly by Lara.

Rock chip sample results from Xstrata and Lara (Teck closed down program prior to obtaining results) ranged up to 5,272ppm Ni, 4,762ppm Cu, 131ppb Pt and 481ppb Pt. Soil sampling by Teck at D grid defined an anomalous Ni zone 1,200m long x 350m wide using 300ppm Ni soil contour with a N-S orientation. Teck drillied seven auger holes at D grid ranging in depth from 4-13.7m with best results 3.35m @ 0.63% Ni, 5m @ 0.53% Ni, 3m @ 0.5% Ni and one diamond core hole to a depth of 20.5m intersecting 4.5m @ 1.21% Ni from surface and one diamond core hole at Sul do Baiao to a depth of 18.4m intersecting 3m @ 0.48% Ni.

No exploration details are known regarding the three Conceicao blocks subject to applications. Whilst the southernmost of the four granted Conceicao blocks is prospective for laterite mineralisation (at the southern boundary) the rest (of all 7 blocks) are considered prospective for large volume, low-grade sulphide mineralisation.

8.jpg

Several Ni deposits are located in the proximity of the Conceicao licence incl the Serra do Quatipuru deposit approx 35km SW (Vale historical non-jorc resource 13Mt @ 1.3% Ni), several deposits directly adjoining Lara's Vila Oito block (Teck non-jorc conceptual resource 86Mt @ 1.3% Ni using 1.0% Ni cut-off), Vila Oito target deposit approx 30km N (Lara scoping exercise non-jorc conceptual resource 10-11Mt @ 1.3-1.4% Ni using 1.0% Ni cut-off) and Floresta target deposit approx 60km N (Lara scoping exercise non-jorc conceptual resource 5-6Mt @ 1.1% Ni). Lara does not consider Vila Oito or Floresta would be sufficient to support a stand-alone mine operation (see NI 43-101 Technical Report for Lara Exploration Ltd 20/01/10).

The Araguaia Project Serra do Tapa, Vale dos Sonhos, Pau Preto deposits approx 100km N (Xstrata measured, indicated and inferred jorc resource 122.7Mt @ 1.33% Ni using 0.9% Ni cut-off), currently on care and maintenance and described as longer term growth option (see XStrata Mineral resources and ore reserves preso December 2010).

All the above deposits are laterite deposits, there are currently no reported sulphide deposits in the region.

Avanco intends to carry out soil geochem and ground geophys surveys in order to define high priority drill targets this year. The 5,000m Ni and Pt targets drilling program may test any targets defined in the surveys.

11.jpeg

6. Further project acquisitions

The acquisition by Avanco of several additional high quality cu projects in carajas is at advanced stage of negotiations - $3M has been set aside from the recent "massively oversubscribed" placement, for acquisitions (see ann dated 08/11/10)

Avanco's stated preference is to pursue properties near exisiting projects, whilst avb's projects (Rio Verde and Serra Verde) are surrounded by majors like Anglo, Vale, Teck and Xstrata, there are several other properties within a 20km radius of Rio Verde and Serra Verde, incl several directly adjoining them, further, Avanco makes the claim it is going to become the leading junior explorer in the Carajas mineral province (see AGM preso dated 30/11/10).

Interestingly, the TSX-listed Lara Exploration, who hold the Conceicao Ni-Pt Project that Avanco is earning into (up to 75%, supra) also hold several tenements directly adjoining the entire western boundary of the Serra verde Project and within 500m of the western boundary of the Rio Verde Project (see Lara corporate preso November 2010). The westernmost boundary of Serra verde adjoins a tenement owned by "individuals" described as JBSC (see NI 43-101 Technical Report for INV Metals dated 27/10/10).

The above post is a reasonable factual representation of Avanco as it currently stands and is not intended as evidence supporting any of the future speculative share prices mentioned in this thread.