AVQ starting drilling San Jorge in September and it was only...

AVQ starting drilling San Jorge in September and it was only 2500m of drilling. The drilling would have been completed in probably mid October, a month for assays and QC, so the drill results should be close to being released. I would have thought that they would have released them by now but it depends on the speed of the lab. However, the assay results from San Jorge should be really close now. If they don't get released in November that will signal there is an issue. However, lets wait and see.

AVQ don't hold their AGM in November, like most resource companies, they hold it in March so there is no pressure to get results out prior to the AGM like many resource companies do.

I said a month or so ago that the resolution on whether AVG gets Isabel back is going to take more time than the end of the year. I suspect that Sumitomo will be lobbying hard for a favourable outcome, so that will probably slow the process. This process probably will not be resolved until 2017. By that time AVQ will need to raise more cash. Therefore, in the short term their ability to raise the share price and do the next capital raising at a decent price will depend on the results from San Jorge. There is a lot riding on those results. If the results confirm or are better than the historical drilling then that is a positive. If the grade is lower at San Jorge than expected, there is major downside risk as the would leave AVQ without their flagfish project and a low grade nickel project. How can you sustain the current share price and market cap on that? Its going to be interesting to see what grade the 2500m of drilling at San Jorge interested.