copper play sleeper - you will be surprised

Has 511,652,972 shares (3B released 27/5/10)....so a market cap of $10.3m at yesterdays close

.....238 m options x 1.5c options - so options do not dilute until share price gets to 3 cents...ie a 50% higher SP.

.....$4.5m cash - so enterprise value of $6m.

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Tenements are all in the Carajas provence Brazil....the worlds richest mining precinst. Vale say they have 118 new mining projects on the books for the Carajas.

AVB is the only Australian company with land in the Carajas.

AVB has a tenement adjoining the worlds largest iron ore mine....Vale N4 N5 mine with 6200 Mt @ 65.8%.

Avanco aerial surveys, flow over this iron ore property ....have shown surface iron ore formations, and company produced a photo of a surface iron ore formation .

Quote from Fridays release:
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"Studies of regional airborne magnetics coving the Trindade North area show two potential Banded Iron Formation (BIF) targets each with ~3.5km of strike located towards the north of the property. This has been followed by preliminary field reconnaissance which discovered elevated terrains with oxide facies BIF outcrops and subcrops enriched in magnetite-hematite."
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AVB also have a JORC surface copper deposit containing 25,000 t of 11.6% copper.

A feasibilty study was produced in Feb 2010....showing US$4.4m profit on 2,500 tons PA production in years 1 and 2.... production and profits are forecast will double, from years 3.

The US$4.4m profit includes payment for start up capital of US$2M ...and is calculated at copper US$2.50 per lb. It excludes gold credits.

Should that US$2m be stripped out...and add additional revenues of A$4m for copper price rise (NOTE-revenues are calculated at 75% of spot due to smelter deductions)

.......comes to cash flow of $10m.

Company are carrying $6m in tax losses.....but still puts them on a PE of 1.3......as mentioned production will double froms year 3.

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After the horrid last 3 years...all investors know is to lock in small profits. I can tell you, its not always like....over the years, am sick of selling these great opportunities too soon.

This one is still going to take sometime. That feasibilty study basically provides us with NPV of $45m (and excludes iron ore).....or a PE of just 3, would see the fully diluted shafe price of more than 4 cents.