vale starts drilling for iron ore, page-6

Things are happening at Trindade North so rapidly!

The latest report says that drill-results indicate early exploration success which means Vale and AVB are both pretty happy!

(Perhaps the Vale geologists had a good idea where to look, and what they expected to find?)

It is also clear now that Vale are very serious about increasing their iron ore inventory to provide them with security well into the future.

Vale only have to drill up to the point where it makes clear economic sense to buy it. They do not have to finish the drilling and jorc etc.

That point will come sooner rather than later I feel.

It is an intensive drill campaign, and if it comes up trumps as indications are so far, then I would predict (just for fun!!) a negotiated settlement of a $30-$35m lump payment for the lot (which includes any future copper finds) That is infinitely better than getting a few million now and the rest in royalty bits at some very distant time.

The current Vale Agreement should be regarded as a starting point only.

AVB needs the capital and Vale wants the iron ore.

Plus Vale now know the management of avb, there is rapport, but if ownership and personnel at AVB change, and the register seems open, then who knows who they would have to deal with. An incentive to excise TN from AVB without delay.

I hope as a sweetener to any potential Deal that Vale will undertake in good faith to release modest tenement(s) to AVB as well. It is more important than cash in many ways to a growing junior expolorer. Carajas ground.

If I were Tony (and without knowing the politics of it) I would be leveraging strongly for more tenements... consumnmated as per Xstrata deal pehaps.

Specifially .. the corner of Serra Verde that Vale was granted? (ref toph post)

Considering TN iron is purely in the nature of a windfall for AVB... i.e. they have taken no risk, spent no money to speak of... they should and will no doubt grab any cash gratefully.

What an exciting week. Well done to those HC's with faith in avb and its management!

Antas South results this week?

I bet Vale do not have to wait months for TN assays. :)

cheers PP