The recent quarterly activities announcement I feel was a mixed lot.
Like everyone, I was hoping for big things from Agua Boa, but that was a disappointment, even to AVB management.
Reminiscent of Touro where the obvious and red-hot survey spot was drilled and you think how can it miss! and... it does! In both cases it is not endgame with the interpretation of the geology indicating the prize is somewhere around about there, but it is not giving up its secret without hard work and pain.
I suppose success just does not come that easily to explorers, or everyone would be rich. You take success and disappointment with a philosophical attitude.
Same with Serra Verde. Hole 21 was ok, but certainly not exactly what was hoped for.
Without detailing each prospect, the ever-growing Antas South is still the jewel in the crown, and well advanced in terms of understanding what is there. If it keeps growing as rapidly as it is!! and the deep drilling continues to come good, then it could be a sizeable mine.
It is on its way, that's for sure.
In the meantime the drilling and assaying grinds on. 20% of total drilling on this program is complete and yet still $19m in the bank! Excellent value for money so far. Expenditure this quarter projected as $2.3m so no sweat. At that rate will take 2years or more to run the bank account dry.
What deal will be done with Vale? That will kick the share price along. The reference to a number of new copper opportunities could be linked to the Vale deal. You lose some ground, and gain some ground in return, from Vale. I would definitely like to see more Carajas copper ground gained as part of any deal. It is precious territory.
Lots happening as per report, and 3D interpretation of old data at Serra Verde could be enormously helpful in terms of targeting the drill rigs. Very important and saves time and money.
If shareholders comprise Institutions, and The Rest and the institutions bought a swag at 10c they will not be happy folk. So I am sure there is plenty of pressure on TP to pull a rabbit out of a hat. Lots of hats to try that is for sure.
All still looking good and very exciting but I believe these things take time. The company seems to be expanding, and getting generally good drill results, in a civilised area too.... not miles from anywhere and transport.
So with prime drilling territory, big demand for copper and a highly capable team.... just need to sit and wait to see what they hit in drilling, and be sure to have sufficient shares to make it worthwhile when things come out of the blue.... the more they drill the better they understand what is happening and can home in.... interesting times. cheers, PP
AVB Price at posting:
9.0¢ Sentiment: LT Buy Disclosure: Held
