AVB avanco resources limited

sulphide versus oxide, page-5

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    Poet

    I do not know the chemistry or process, (could be digging up those 50% chunks and direct shipping them) though I am sure AVB staff do, but they stated at the AGM presentation that they would be able to mine some of the oxide in parallel with the major sulphide ore at Antas North. It's also mentioned in some of the ASX release recently. This fact has been mentioned a few times in here. You should attempt to get to the next AGM to get all the info available, we are provided with a volume of data that is not necessarily apparent in the printed material. Also the chance to ask questions directly of management. I'd be surprised though if they took their eye off the ball to the extent of diminishing their returns on the sulphides to get at the oxides too early. The oxides will still be there to mine when other oxides are available. We do have all those small deposits that have been located historically.

    The other thing I think we should remember is that there will be additional sulphide ore at Antas North. Maybe a lot. Go back and have a look at the resource at Antas North. The ore body was 37.75 metres wide with grade increasing on AAND-57 core alone. Many of those cores were increasing in grade and width at end of core. Strike was approximately 700 metres long. I think if you want to ponder increased resource there is plenty of material there to look at. The directors made a point of telling us at the AGM that there would be significant additional drilling at AN from the pit floor. That way they pay pennies to get the data and locate the ore compared to sending down 500 metre deep diamond drills during exploration from rigs that cost mega bucks to hire. I imagine they'll have a small rig of their own to pursue such activities when the time comes?.

    Just some of the grades at AN:
    39.02m at 1.25% Copper, 0.11g/t Gold from 182.00m AAND-49
    11.65m at 1.28% Copper, 0.29g/t Gold from 174.75m AAND-50
    2.60m at 4.47% Copper, 0.46g/t Gold from 138.60m AAND-51
    2.40m at 8.73% Copper, 0.78g/t Gold from 152.60m AAND-51
    13.00m at 1.26% Copper, 0.37g/t Gold from 366.00m AAND-52
    5.60m at 3.05% Copper, 0.99g/t Gold from 77.70m AAND-54
    19.85m at 1.84% Copper, 0.41g/t Gold from 306.00m AAND-57
    35.75m at 1.88% Copper, 0.42g/t Gold from 337.00m AAND-57
    6.10m at 6.37% Copper, 0.33g/t Gold from 223.70m AAND-60
    15.75m at 1.21% Copper, 0.57g/t Gold from 340.25m AAND-62


    I know we are at that point in the overall process where the info feed slows and it can be difficult keeping the "faith" but I think it is important to keep in mind that AVB is run by a group of industry professionals with vast experience. I've been heartened by the fact that they are adopting strategies such as the above on drilling from the pit floor. These and other initiatives, at least to my mind, show that they are focussed on producing copper from these amazing leases. Their thinking is way more on track than yours or mine (as should be the case:) ). Copper is around $8250 a tonne, they have a lot of copper of VERY GOOD GRADE which will see us all drinking beer on that pub veranda in Parauapebas. News will start flowing again soon, there are assays at the lab and drilling is happening on 3 or 4 rigs. I keep expecting an announcement every morning.

    If you want some amusement, try putting the coordinates of Antas North and Trindade North into google earth. At Antas North you can actually see where they are going to place the tailings dam, at TN you can see the hilltop they hold against the advancing hordes of Vale. The higher ground is always a strategic advantage. It is my belief that as Vale's mine works approach TN they will simply have to purchase TN. Otherwise they pack up and abandon billions of dollars of plant (a little exaggerated but you get the drift). Unfortunately the imagery in Google Earth is from 2006 or we might be able to see the drill rigs in operation :) Wonder if we could get the yanks to lend us a spy satellite?

 
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