announcement out - 3 fold increase in s.verde!, page-6

What does what mean, crazyman? Just checking if anyone wants it posted because they can't access it - we all have issues with our systems sometimes. Anyhow just in case, here ya go:

AGREEMENT WITH MAJOR
COPPER MINER BRINGS
THREE FOLD INCREASE TO
THE RIO VERDE PROJECT
The Company is very pleased to announce the closure on a transaction
which provides Avanco 100% of an extensive tenement package adjacent
to the Rio Verde Project. The new tenure hosts an extremely prospective
14km long copper trend which clearly justifies a significant increase and
widening of the Rio Verde drill programme. Additional rigs have been
sourced and are mobilising.
HIGHLIGHTS
 Transaction completed for 100% interest in an extensive land
package which secures additional ground along strike from
the Rio Verde Project.
 The new tenements include an extremely prospective 14km
long anomalous copper trend hosting immediate and high
priority drill targets.
 The potential for a large discovery is underscored by Xstrata
Copper (Xstrata) who have elected to carry an �option� to
�back-in� and form a joint-venture with Avanco.
 New tenure is adjacent to Rio Verde and comprises:
 Three exploration licenses for a total of 16,000ha
 Two exploration applications for a total of 10,000ha
 The three fold increase in the Rio Verde land holding
increases Avanco�s total copper footprint to a massive
38,800ha (approximately 388sq km�s).
 Three rigs are currently drilling at Rio Verde and Serra Verde
with another mobilising in the coming days. The ramp-up is
ongoing with a total of six rigs expected before the end of May
2011.
RIO VERDE EXPANSION
This transaction has secured a 100% interest in the remaining strike
potential of the Rio Verde Project1 in both the east and west directions.
The new tenure comprises three exploration licenses for 16,000ha and two
exploration applications2 for 10,000ha. The substantial expansion
represents a three-fold increase in the size of the Rio Verde Project and
increases Avanco�s copper footprint to 38,800ha (approximately
388sqkm�s) including the neighbouring Serra Verde Project3.
The transaction recognises the significant exploration potential associated
with the area and is subject to an �option agreement� with Xstrata
wherein the main provisions include:
1. In the event Avanco discovers a copper resource with potential to
support the production of 80,0004 tonnes per annum of copper
metal for a life-of-mine greater than 8 years, Xstrata can exercise
the right to �back-in� up to 70% (this excludes pre-existing Rio
Verde and Serra Verde tenure).
2. On exercising the �back-in�, Xstrata and Avanco will form a joint
venture company on a 70% - 30% equity basis respectively.
3. As part of the back-in conditions, Xstrata will, reimburse the
Company two times the value of exploration expenditures and
offer a favourable financing facility to assist Avanco in funding its
contribution to project development capital.
4. Should the back-in not occur, Xstrata Copper will be entitled to a
0.5% NSR production royalty from Avanco.
5. A 1.5% NSR copper production royalty is payable to a former
owner.
Former explorers including Noranda (now Xstrata Copper) completed5:
stream sediment sampling, geological mapping, airborne
Magnetic/Electromagnetic surveying, soil geochemistry, Induced
Polarisation (IP) surveying (80m and 100m dipole-dipole), 10 auger holes
and 12 diamond drill holes for a total of 3,339m. From within the new
tenement package the Company has identified a number of exploration
priorities including the following immediate drill targets:-
 The northern copper soil anomaly (>4km in strike) which
includes 3 historical drill holes, shows exceptional potential for
sulphide mineralisation with significant mineralisation already
intersected. The soil anomaly is the strongest on the property and
is also coincident with a strong magnetic anomaly associated with
magnetite alteration typical of Carajas style IOCG mineralisation.
 The central copper soil anomaly (>2km in strike) shows strong
IOCG related alteration in 7 historic drill holes. Numerous holes
justify immediate follow up, particularly where primary copper
mineralisation has already been intersected. Additionally 2
significant chargeability anomalies (+15 mv/v) were detected in
the IP survey and remain untested.
 The very extensive southern copper soil anomaly (>5km in
strike), historical IP surveying produced coincident targets with
copper soil anomalies which have not been drill tested.
 Strike continuation of the Lazinho Prospect which is already
supported by historical anomalous soils and limited historical
drilling.
The Company believes that the above priorities clearly justify drilling and
have allocated 5,000m from Avanco�s 2011 drill programme. Additional
rigs will mobilise to Rio Verde over the coming weeks and months with
six rigs expected to be operational before the end of May.
CORPORATE
This latest transaction by the Company captures a further 14km of
extremely prospective copper ground which will be drill tested as part of
an expanded Rio Verde drill programme.
Exploration success across the new tenements has the potential to trigger
the formation of a joint-venture partnership with major copper miner
Xstrata Copper.
Confident of continuing exploration success, the Company has secured
additional drilling rigs and expects six rigs to be operational by end of
May.
With greater than $20m cash, Avanco is in a very strong financial position
to aggressively explore and pursue new high profile copper acquisitions.