iron ore update, page-6

This is one persons reading of the announcement...

1. From the photo(!) and what is said, it appears that they have gone through some Very long intersections of BIF.

2. After only 15 holes for 2600m they have enough data to confidently prepare a resource estimate ?! The purpose of this intial estimate would seem (to me) to be in order to form some Quantitative Basis for purchasing Trindade North from AVB. You have to have numbers to table in order to justify the purchase to Vales own management, and to satisfy AVB shareholders.

3. Instead of the drilling dragging on for years with progress payments, they say the maiden program has been COMPLETED! That is .. why go on drilling for more of the same when the rich nature of the deposit, as expected, is confirmed now.

4. The FINAL Exploration Report is going to authorities. Final! So no more drilling needed.

5. There is interesting and significant mention of the fact that the iron ore deposit needs to be mined concurrently, or in other words it should be mined by Vale, using their resources and facilities. That is to say AVB will not be mining it as a stand alone, and that Vale will be mining it. That is just pure common sense really. But it hints that it will soon be in Vales possession.

So the drilling is wrapped up early. The resource is excellent and confirms expectations. The correlation of survey data with this current find is likely high, so will also allow some sort of extrapolation over the total TN deposit.

It is (quote) highly magnetic so can be mapped confidently.

Now perhaps it only remains to determine terms for sale of Trindade North to Vale.

Hopefully $30 - $40mill, which would strengthen AVB enormously. That would be a nice kick up for the SP when it all comes through. No need to dilute shareholdings to raise capital any more. Nice.