That resource upgrade should contain a revised JORC for the HGZ. Previously today I have mentioned that the HGZ has the potential to host 100,000 tonnes of copper. On my estimates thats definately towards the upper end and I was probably a little excited (I can get ahead of myself).
It really does depend on what the extensional drilling to the HGZ returns. How much further does the HGZ extend and what widths and grade of copper mineralisation are we hitting? Lets not forget they think they have located other HGZ targets on the license but we cant factor any of this in yet. Im thinking with the revised JORC we will be closer towards 40,000 tonnes of contained copper which is still excellent(I'm trying to keep it real but I hope they report more). That would support a stand alone project quite easily and it will be very profitable. If you have a look back when the HGZ JORC was first released there were the key points relating to the resource. See below.
"HGZ Exceptional Results:
Hole ARVA-17 38m at 7.49% Cu from 0m Incl. 14m at 18.99% Cu from 22m
Hole ARVA-24 26m at 5.47% Cu from 18m Incl. 6m at 21.02% Cu from 32m
Hole ARVA-49 20m at 5.12% Cu from 13m Incl. 4m at 21.53% Cu from 17m
Over 300m of High Grade Strike and further High Grade Zone discoveries anticipated.
The HGZ has potential to support a stand-alone "starter" project."
Now I would like to point out the following.
Current JORC for the HGZ stands at:
"210,000t at 11.65% copper, containing 24,400t of copper."
"The JORC resource of 210,000t at 11.65% Copper (HGZ) extends from surface and has been modelled over a strike length of two hundred and fifty metres. The HGZ is open to the north west where high grade copper showings outcrop at surface (not included in the resource calculation)."
Just recently we had an extension of the HGZ to over 520 meters and it remains open on strike.
"The HGZ remains open on strike and now exceeds 520m representing a doubling in length since the start of drilling."
So the HGZ still remains open on strike. It has more than doubled in size since the initial JORC and our infill drilling has returned excellent results which could potentially increase the overall grade of the initial JORC. I am personally hanging out for an overall increase in copper % so I hope it happens. This will increase the indicated copper content. I do agree with zachary that the width and grades for the HGZ extensions have dropped off which is why you just cant simply double the indicated resource.
Anyway if we are to look at the post JORC results..they compare favourably when compared to the previous exceptional results posted by management when we got our first JORC resource. See results below.
ARVD-72 6.15m at 8.06% Copper, from 38.0m Incl. 3.85m at 11.23% Copper from 40.2m
ARVD-74 2.0m at 8.09% Copper from 28.0m Incl. 1.0m at 11.83% Copper from 29.0m
ARVD-80 32.0m at 14.79% Copper from 1.0m Incl. 9.0m at 50.49% Copper from 18.0m
ARVD-81 1.0m at 14.00% Copper from 44.0m
ARVD-85 7.25m at 14.26% Copper from 49.75m Incl. 2.05m at 42.68% Copper from 49.75m
ARVD-86 3.0m at 10.85% Copper from 58.0m Incl. 1m at 23.6% Copper from 58.0m
ARVD-87 1.0m at 24.5% Copper from 40.6m
ARVD-89 1.3m at 17.98% Copper from 63.0m
ARVD-92 18.0 m at 2.06% Copper from 25.0m Incl. 3.0m at 6.75% Copper from 39.0m
ARVD-94 42.0m at 1.23% Copper from 13.0m Incl. 0.65m at 35.88% Copper from 51.35m
ARVD-95 18.0m at 1.77% Copper from 20m Incl. 2.0m at 4.57% Copper from 30.0m
ARVD-96 2.0m at 6.93% Copper from 46.0m
ARVD-98 12.0m at 1.97% Copper from 24m Incl. 1.05m at 6.53% Copper from 25.4m
ARVD-102 11.0m at 1.02% Copper 4.0m Incl. 2.0m at 3.32% Copper from 11.0m
"The Company is very pleased to report that drilling at the Rio Verde Project High Grade Zone ("HGZ') continues to show excellent results along strike with the hotly anticipated results from key holes ARVD-114 and 115 confirming that the HGZ remains open on both extremities.
The latest exceptional results for the HGZ include:
ARVD-114 1.85m at 28.17% Copper from 59.7m
ARVD-115 0.8m at 26.75% Copper from 21.2m
ARVD-116 2.75m at 3.60% Copper from 91.9m Incl. 0.5m at 14.31% Copper from 91.9m
ARVD 117 3.90m at 6.05% Copper from 43.1m Incl. 0.7m at 17.63% Copper from 43.1m
ARVD 110 0.6m at 5.53% Copper from 63.1m"
There is no doubt that there will be a significant upgrade to the HGZ. I am just mentioning/repeating what many of you already know. The previously reported copper content was 24,400 tonnes of copper over a 250 meter strike. The strike is currently greater than 520 meters. If they extend the strike yet again then it's starting to get quite large. This is only the high grade portion of the resource in question.
The market hasn't really factored in that we have this direct shipping ore just sitting here. They are more excited by the recent deep primary sulfide discovery at Antas North which is trending down towards Antas South on the western edge of the Antas South resource!
The result which impressed..see below.
"23.50m at 1.55% Copper, 0.45g/t Gold from 58.00m AAND-14 35.60m at 3.67% Copper, 0.22g/t Gold from 153.00m AAND-14 Incl. 2.60m at 19.75% Copper, 0.69g/t Gold, from 155.80m Incl. 4.85m at 8.43% Copper, 0.56g/t Gold from 182.85m
27.70m at 5.96% Copper, 2.80g/t Gold from 53.15m AAND-15 Incl. 4.57m at 21.90% Copper, 3.72g/t Gold, from 53.15m 10.75m at 3.69% Copper, 1.60g/t Gold from 104.25m AAND-15"
In conclusion I think their are many announcements which will hold our SP firm and likely increase our SP down the track. It's not too long to wait. I would like to say that the reason why all this dribble has come up was also due to me responding to a particular post which reported our average grade mineralisation during our recently embarked 50,000m drilling campaign. I didn't like how the average grade being posted was including exploration drill results from Pedro and Agua Boa (grassroot exploration targets) and felt that it didnt show a true indication of the potential for AVB's Rio Verde projects in Antas North, Antas South and the Antas South HGZ. I guess I just like to confirm and reiterate all the positives in the stocks I own.
cheers.
AVB Price at posting:
11.5¢ Sentiment: LT Buy Disclosure: Held
