Whilst Avanco may only have 6 drill rigs currently working across 3 tenements at present, IMO they will want to ramp up even further to 8 to 10 drill rigs by the end of June 2011.
Going by the upbeat tone in the last 3 announcements released to the market, management is deadly serious now about aggressively proving up it's resources in the Carajas region. The drill program may have started with a whimper during the wet season in late November 2010, but is seriously ramping up now and going full speed with the onset of the current dry season.
Considering that we weren't expecting to have 6 rigs until late May and now have them going flat out since mid April, you get the feeling that management want to move things along real fast now and make the most of this current dry season. They certainly know they have something big here, so it's just a matter of time now before we get confirmation of just how big this group of deposits actually are.
So i for one cannot believe for a minute that management will settle for just 6 rigs to complete the current 50,000m drill program. I can see at least another 4 rigs if not more being brought into play before the end of June IMO.
Also full credit to management for bringing in the 2 newer big drill rigs to test these deposits at depth. They obviously know they run much deeper than previously tested. Will be watching closely to see in coming months what these deeper drills strike at depth!
I also believe the new ground that Avanco have Joint ventured with Xstrata may end being the jewel in the crown, so will be watching closely to see the first results from the 'Bullseye target' at the Agua Boa prospect....
The good news is flowing now so we just wait patiently for it to flow....
GL to all holders.
AVB Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
