ava: the next azh???

Looks like it'll be an exciting 3 months ahead for AVA...

Good points that I like about AVA now:

1. CEO has bought another 600000 shares out of his own pocket at 11.5 cents. This is a strong management endorsement of the potential of the company.

2. Maiden Resource due for this coming June. This will give the share price a further boost. AVA is planning to drill 20 holes in the area in Bushiangala over the next 3 months leading to the resource estimate. The gold grades are pretty good so far. In fact, the grades are quite similar to AZH's earlier days.

For Bushiangala, we have:
Hole 1: 19.81m @ 9.41g/t ; 1m @ 1205g/t
Hole 2: 1m @5.15g/t
Hole 3: 5.6m of 3.73g/t
Hole 5: 12m @2.22g/t
Hole 6: 6.34m @ 5.02g/t ; 2m @ 5.08g/t; 16m @ 5.91g/t;
Hole 17: 3m @ 2.55g/t
Hole 19: 7m @ 8.29g/t
Hole 21: 17m @ 7.21g/t

For Kimingini, we have:
Hole 25: 9m @12.07g/t
Hole 26: 10m @2.25g/t ; 2m @ 2.08g/t

Bushiangala and Kimingini are the areas that the company is focusing its drilling efforts on. This will provide a steady stream of good news for investors.

3. The tenement size is 2800km2 at the prospective Ndori Greenstone belt in Kenya. This is a good size which provides up to 20 prospects for targeted drilling for AVA.

4. New institutional fund just came onboard the share register as major shareholder, i.e. Marford Group Pty Ltd. It's good to have Sentient fund onboard too, which specialises in investing in resources development companies. They obtained their lion share of the company at 20 cts/share. Marford must have smelt something good. Sentient fund is the one that invested in SXY and MGO.

5. Capital raising will need to be done sometime in 2nd quarter this year. The previous capital raisings were done at 15 cents and 20 cents. It's very likely the next capital raising shall be done at similar share price levels, if not higher. Management or the major shareholders will definitely push the share price above 15 cents ahead of the next capital raising.

6. The company is backed by a huge JORC resource of thermal coal at Botswana with 895Mt. This resource itself is sufficient to justify the market capital of this share now.


All in all, I think anywhere below 15 cents/share is a pretty good bargain. Happy investing! =)