Thanks Snoop - in p18 of the AGM presentation, AVB discuss the...

Thanks Snoop - in p18 of the AGM presentation, AVB discuss the Conceicao results to date.

Note exploration to date to show 'clear evidence of a cluster of magnetic intrusions with excellent prospectivity for Ni sulphides'. Three clear drill targets have been identified with the latest Lara results suggesting further promising drill targets.

Interestingly, the AVB AGM presentation finishes with the comment that AVB is looking at options to realise greater value from its nickel assets. These are the Conceicao JV and Touro.

So putting on my thinking cap, these are the options I have come up with:

1. obviosuly there is the option of spinning out the Ni prospects into a separate listed vehicle. This could be done via cash or scrip. However the current parlous state of global capital markets suggests that this might be a medium-term option only and from the sounds of the AGM preso, AVB wish to monetise the Ni to pump into the copper/gold business in the Carajas.
2. Lara could potentially buy-out the Ni prospects or farm-in to Touro to get some momentum up for this project. However LRA only has cash of 3m as at Sep-11 so that option seems out of the question - see option 1 for comments about global markets.
3. So this leaves the option of one of the majors farming in to the nickel. Lara has a strong relationship with Codelco (several IOCG JVs) and obviously we know AVB has the connection with Vale and Xstrata.

I am leaning to option three, with the majors funding the exploration under an option structure much like the iron ore at Trindade.

Thoughts? I do not believe the current AVB share price attributes any value to the Ni prospects so any of these options would add a few cents to the share price from here.

Many pans in the fire ...

Chrs Pete