infill drilling, page-10

Depends on who you talk to, but my info is that the required budget for AN infill drilling is less than $1 million...probably about $750,000.. I have been told only 2000 meters of drilling "at the most"...inclusive of all infill drilling and including some depth extensions on some of the previously discovered higher grade material/hitsl or zones...I would suggest this would be potentially directed by SM in conjunction with and direct input from Dr. Bielin Shi, who has extensive experience relevant to this style of mineralization and would also be working with Antonio Madalosso and Jailson de Araujo all very experienced site geos...I would imagine that collectively they will know exactly where to drill to cost effectively produce the relevant proven JORC upgrade...scale of economies apply in drilling also where you want maximum mineralization found for minimum meters drilled... also in the recent feasibility study a simple open-pit was examined and considered very robust... however AN remains “open down plunge” offering significant potential to increase LOM by underground mining...JORC Resources below the pit are: 1.9Mt @ 2.16% Cu, 0.45g/t Au for 41,000t Cu, 27,500ozs Au...This offers significant opportunity to extend mine life using underground development [based on 400,000 Tpa plant capacity]...The following also examines the future opportunity associated with sulphide copper resources situated only 300m away at AS...

Optimization modelled a 9.6 year pit with a large cut-back in Year 8...the AN project parameters Study only examined first 7 years...with 2.6 years un-allocated immediately available below the Year 7 Open Pit for 24,000t Copper and 26,000ozs Gold...Validity includes evident underground potential at AN and is geological and economically logical to go underground …AS contains a further ~2Mt @ 1.64% Cu in Sulphide…Resources below the oxide ore body where only 300m from AN, probably accessed from extensions to the underground development at AN and represents future opportunity for extending LOM underground to capture the residual resources found at AN and connectivity to AS…a full drill out to test this is expected beyond Year 5 cut-back to exploit the evident underground potential...also under consideration at this point the focus is also on sterilization drilling and geo-tech pit drilling probably no more than 800 meters...the photos I've seen indicates pretty new NQ rigs and I have been told very efficient drillers/drilling team...the critical point here is AVB has built a very good relationship where the drillers have become very loyal to AVB management…this is a real asset to AVB at this critical point…they will continue drilling/working in any weather [just about] and stay on site…

The geo physicist when logging cores, which occurs long before assay results are received...they also get to physically observe critical information on how rocks are bedded, their direction and potential over bearing structure, untested but easily observed ore signatures, even able to clearly note the crystallised structure of mineralization, when it occurred, which mineral came first, likely temperature/ pressure etc... Sure the previous drill hole intervals will have been based on maximum bang for buck...but now BR have dictated the terms for the release of their junior debt facility…So it is now the technical staff on site that really dictate the terms of the likely plan for the current drill plan…what is exciting at this point for any observant investors is the concept of the ore body at AN is clearly not only OPEN AT DEPTH, but thickening and contiguous at depth …with grades not only robustly remaining the same but also increasing in grade… beyond the known or existing proven mineralised zones …AVB should easily be able to get BR’s JORC requirement with finance hurdle now clearly overcome…dyor