better week , page-11

There should be an Ironore update very soon I would imagine. Possibly another update with more drill results in the coming weeks too. The quote below is taken from the quarterly released on the 31/01/2011.

"Iron Ore Project drilling approvals obtained and Vale SA expected to mobilise within weeks. Trindade North has the potential to generate between $10m to $40m for Avanco."

"Vale has already communicated details of it proposed drill programme and the Company expects to provide more information on this and the start of Vale drilling in the coming weeks."

I reduced a position in one of my holdings (as they havn't gone down in the recent market downturn) on Friday to buy more AVB. I could of picked them up at 12 cents if I was faster but missed it. So got them at 12.5 cents. Thought it was a steal with the range of announcements just around the corner.

I personally feel the downside risk from here is pretty limited. I hate to see her go down but I took the opportunity for a top up. Some key points for AVB below.

Cash at bank - 22.5 million as per last quarterly released on 31/01/2011

Fully diluted market cap - 123 million
Vale Maximum Potential for Trindade North - 40 million

Copper still very strong IMO trading at 4.24 a pound.

I also feel that some of the results around the corner could really get things moving for AVB. Holes to watch in the upcoming Rio Verde results.

ARVD-114 - Appears to be high grade and is an extension to the Eastern side of the HGZ

ARVD-115 - Also appears to be high grade and is on the Western extension of the HGZ. The key with this hole is it has hit chalcocite + bornite + chalcopyrite from only 15.57 meters depth to 24.6 meters depth. Almost a 9 meter width hit from surface. The exciting part is its on the edge of the HGZ. Watch carefully for the result on this hole as this could really spark some interest.

Then we have Serra Verde results also around the corner. Now why would you not assume that there is some serious copper/gold potential on this license considering there is the historical Serra Verde Garimpo open cut existing here? Results on hole ASVD-02 will be interesting. Pedro which lies at the eastern end of a 2.5km long "BAIANO" copper gold soil anomoly could bring further excellent results. See image below to see the area where the first two drill holes have gone down. I didn't pin point it exactly but it provides a rough idea on the hole locations. I have marked the area with a purple circle and you can get an idea of how much area we still need to test. Serra Verde open pit also lies on this anomoly but to the Western end as you can see from the image.



Below is a reminder on Pedro as I have previously focused on the Pedro prospect in earlier posts...

"Pedro is another extensive soil anomaly which extends for more than 2,500m. It connects with the open pit at Garimpo Serra Verde but has yet to be tested by the drill bit."

http://www.avancoresources.com/pdfs/WorldMiningStocksMar08.pdf

Well now it has been tested and the potential for a discovery here is excellent considering we have already hit mineralisation with decent width within the first two holes. It couldn't have been a better start to the Serra Verde drill campaign IMO. We just need to wait to see the grades. I still believe the patient investors will be rewarded in the longer term. cheers.