cheapest spec with 2 majors in the plan, page-4

Avanco has said that the next results are expected to :

1. Be consistent with those positive results published in 2010.

2. Have significant copper in all holes.

As the results varied in 2010 from 50% type material down to low values, that first statement is nice but non-specific. Significant copper ? what is significant?

TP told me once what is best is really big quantities of 0.5% - 1% copper oxide because those grades are perfect for a solid long-term profitable heap leaching process. So setting aside the sulphides, lots of lower grade shallow oxide would be great and very profitable.

However these days, the grades considered significant by the market (as opposed to us HC posters) are approx 50% materials. That is what makes the market sit up and take notice and makes the share-price zoom and hold.

Carefully studying history.... the Vale deal, Xstrata deal... and the 12th Oct, March 2nd, and other announcements were received with a modest sp rise (1-2c) followed by a fast fallback. It is worth examining.

1,000m drilling is only 2% of the program!

If the market sees the next results as more of the same, although good ... then it will possibly do what it always does and flick up and down again.

What I am suggesting is that the next results may not necessarily produce massive sp jumps, if it is the same good stuff as before.. as has been suggestedby avb.

Maybe up 1-2c and then return to start point ? ... at best.

(Unless of course the wildcard headline is More 50% Material Found, then all bets are off!)

It is all about strategy surely !!!... and having a PLAN in place in advance.

A. Sell and buy back, or B. sit and watch.

Based purely on carefully studying past market response (like charting which projects future results on past data) my personal expectation is that there will be a modest SP rise of 1-2c then return to 13.5 - 14.0c. I think I will trade a few. And not be disappointed if it does the usual fall back.... and try and take a useful trading profit at least.

Looking forward to next good results, but am keeping sp expectations very REALISTIC and modest for above reasons. Early days, weather has been unhelpful, and no fortunes to be made without patience.. but certainly medium term fortunes I reckon!!. good luck!