requirements for funding, page-6

When I approached Scotty about running out of cash in October 2013 at current spend rates, one solution he suggested (assuming the non-receipt of Vale Money which now according to Simonhhh is not going to happen for 12 - 18 months, if ever) was to simply "slow down drilling".

This is precisely what is being proposed in the last announcement. "With drilling scaling down...." and I believe TP was speaking generally... not just about PB... because TP then goes on to say how the cash thereby saved (by little drilling) presents AVB as a stronger company. Fair enough I suppose.

As an aside, if one divides the TOTAL money spent per quarter by the metrage diamond drilled over a period of about 18 months for Avanco, one gets the figure of $330 per metre.(which includes assay costs). PB13-32 went to 878m, which gives a notional value of $289,000 to this little hole in the Carajas. That is one VERY expensive hole. Naturally one asks what AVB got for this expenditure..... So at some point it becomes a bit of "a law of diminishing returns."

However if they quietly tunnelled at Serraria at an azimuth of 270 degrees... and kept tunnelling just below surface they could get to Sossego.... lots of Cu/Au there.. but they would have to do it very quietly. ;)

As I recall Avanco boasts the second largest tenement holding in the Carajas, but I might be wrong there. Xstrata has transferred holdings over (incl Agua Boa etc), plus AVB is grabbing more..... It might also be losing some due to inactivity, but it never reports on it. Xstrata surely expects Avanco to do more with them than sit and do nothing because it has no money.

Even good old Serra Verde and Touro and are still in the folio gathering dust.

So it is one thing to boast about large highly prospective land holdings in the Carajas, but it is all totally pointless and useless if you do NOTHING with the vast majority of it. That can be a reason the market loses interest in your shares. Mine or no mine.

I personally want them to get some exploration funding in without issuing shares at 4-5c and really rip into the tenements. Scratching around the westerly properties with mapping, augers and soil sampling does little for me. It may do for others but AVB's holdings are large.

If they have the holdings they claim, then GET EXPLORING them aggressively. Or surrender the tenements and let someone else with Guts&Determination and venture-money have a go at them. That's fair?

That is why I suggest some clever corporate leadership is required to set Avanco on a course to explore the tenements they have, and impress the Market and the Brazilian government too.

That is just one way of looking at it.. and of course there may be others too... and I tend to be very demanding in my approach.