As bobsyer.."your uncle" said, "AGM went extremely well. Great presentation together with quality Q & A. We're going to need a bigger room next year..."
So here goes...bear in mind I just sobered up so spelling a bit off,
AVB is "actively planning" to shift from explorer status to developer status as quickly as possible, i.e. good quality technical staff to support this assertion... Planning 30,000 to 50,000 tpa for Rio Verde is definitively "got the goods"...and will leverage that expansion for future growth...Planning for end of 1st quarter 2012 for JORC compliant resource update and end of second quarter 2012...30,000 tpa PFS for mining and infrasture development...AVB will use CSA Global to complete all underground 3D modelling to be compliant for release to the market and already Simon Motrum senior site Geo indicated AVB are using several Surpac type computor packages for highlighting drill targeting...sounds like a good idea to me and I would love to be on-site to see the reults of that, eh!!!
The combining synergy of Rio Verde, Serra Verde, Aqua Boa, TN, Conciacea will make AVB "leading junior explorer" in the Carajas gaining respect from Big Miners in the region if not Brazil...i.e. meaning Carajas is the Kalgoorlie of Brazil...N4N5 will become the biggist high grade Iron Ore producer in the world and AVB is directly in the loop for external infrastructor...AVB has completed successfully 19,580m of drilling with better than expected results over 38,000 hectares and 30,000m to go and is on track to produce a very healthy JORC...any speculation as to its size was quelled..but talk of 30,000tpa over 10 years of 1% plus Cu and .5gm AU is in the ballpark and likely...It is interesting since if you read my earlier posts on this subject this aligns with Net Present Value fully diluted at 75 cents with Cu price of US$7,500....
Of the 2 labs AVB are using the turnaround SGS and Intertec...Intertec's new facility and operational efficiencies are producing very quick result outcomes for AVB prioritised cores...last round of results from previous ann. took only 2 weeks...VTEM surveys done recently and empirically proven the Paulinha, Antas North and South, Caparvira mineralised trends...And also the Aqua Boa, Larenzo to Clovis mineralised trends...The 2 major EM targets appear to prove the existence of 50 to 55 meter true width single lenseson the foot wall of sulphides running DEEP and ongoing...Obviously follow up deep drilling down strike and down plunge of greater than 450m to prove this up...Antas North shaping up to "have the goods" with ore bodies dead straight on strike both ways and drops near vertical with true width 50m plus wobbling in and out...meaning this will be easy and inexpensiveto mine relative to other mines in the region...ore bodies have very even grades and correspond well historical data sets from previous drilling outcomes in this area from previous Explorer's activities...AVB up against limited drilling rig capacity i.e. can't drill deep enough in AN and AS so bigger NQ rig commissioned to complete task for AN and AS mineralised trends and 2 new revised EM targets...Relative to AN..AS is proving to be larger disemminated mineralisation with lower grades...
The Trial Mining Licence is a real "win-fall" for AVB..i.e. a real vote of confidence from the Brazilian Dept of Minerals and Energy...licence has some loose parameters of control "elastic" around what can and cannot be done...An ASX listed company in the region has built a 450 million MC from such "licence"...AVB potentially could do the same and quickly given the size and consistency of its HGZ's...Vales 30 to 40m sale of TN will trigger mining the HGZ and completion of PFS 2nd qtr 2012...This is soon going to become a reality since Vale have already indicated they need the HG magnetite from TN to build consistent grades from the soon to be commissioned N4N5 worlds biggist Iron Ore deposit...
In conclusion to a very successful and informative AGM...TP indicated AVB is extremely well situated in the region with the nearby city of Parauapebus for labor [population 230,000], new and used mining equipment, infrastructure etc...this on the back of big mining in the region, building over 30 years...so it follows logically AVB potentially from this point can go from explorer status to mine development to mine producer relatively quickly...sounds like a good idea to me...
GLTA and DYOR...this is not investment advice
AVB Price at posting:
10.5¢ Sentiment: LT Buy Disclosure: Held
