AVB - Avanco Resources

[TheAbyss]

Volume picked up nicely on this today leading into news from drilling results due in the near term.

High grade copper is topical at the moment and AVB seem to just keep finding more high grade CU so looking forward to the next results which are due this month.

In for a bit at .15.5 cents

 

[topsy99]

Let's hope you are right. Leading merchant banks seem to be talking down commodities. Going against this trend would be a good strategy.
I have my buying set at 12 cents. So each time it touches 12 cents I pick up more.
Lets hope I dont see 12 cents again.

Dont lose patience. Have bad experience with my patience. Recently owned Alkane and couldnt get over $1.05 with in 2 months of selling out they touched $2.60. I must be lead in the saddle bags.

 

[cosmick]

wat the hell is going on with AVB!!!
why is it going down the pooper!!!!!! (Crying...)
WHY!
can someone really explain why?
cheers

 

[STRAT]

wat the hell is going on with AVB!!!
why is it going down the pooper!!!!!! (Crying...)
WHY!
can someone really explain why?
cheers

Gudday Cosmick.

Chart
AVB is in a gradual down trending trading range on light to moderate volume which could be deemed Par for the course after such a massive spike ( Sept 2010 ).

At a critical point right now.
Back into the range or off the cliff.


General.
No news
Down trending copper price
Down trending markets
General sell off all round.

All these contribute to a lower SP.

Like all things, your buy price determines your stress level.

Im still holding some AVBOB at 1c and not too stressed.

Yet!

In addition the pencil pushers that were the driving force behind the re rate have probably moved onto new start up projects. FA aint my thing but if you are interested in researching these guys, let me know and I will dig up a few names and tickers for you.

So wipe away those tears dude. Harden up as they say lol. This is a tough and cut throat game. If you end up loosing a few bucks the most important thing is to figure out why. Remember why and try not to do it a gain.

 

[happytown]

toph and 4thekids, here's the latest condensed version courtesy of happytown/flurnt


this is not the same company it was six months ago [conversation with management - tp]

on the seventh month anniversary (give or take a bit) of the commencement of the current drilling program, some brief thoughts on avanco

first, some rough statistics of completed holes (with further detail below) in the current drilling program (as of most recent ann 20/05/11):

approx 8.2% of drilling program completed (46 holes for 4,079.05m of 50,000m completed)
approx 52.2% of completed holes assays received (24 of 46 holes)
approx 88.0% of holes with assays received confirmed cu intersections (21 0f 24 holes)
approx 41.6% of holes with assays received resulting in greater than 5.0% cu intersections (10 of 24 holes)
approx 47.6% of holes with assays received confirming cu intersections resulting in greater than 5.0% cu intersections (10 of 21 holes)
approx 23.8% of holes with assays received confirming cu intersections contain discrepancies (5 of 21 holes)

1. trial mining licence

brazil is similar to australia, in that mining approvals are states concerns' unless issues arise that require federal/national government approval (eg environmental, national security, etc)

the rio verde property (where antas sth hgz, the subject of a trial mining licence application, is located) is currently only subject to state approvals (para state)

somewhat recently elections were held in brazil across both federal/national and state level legislatures

the federal/national government was re-elected, however there was a change of government at state level in the para state - to a government arguably more business friendly than its predecessor

nonetheless the usual political jockeying for jobs has been underway in earnest (incl and crucial in this discussion, at the state levels of the departmento nacional de producao mineral (dnpm)) resulting in the current state of inertia surrounding licensing approval in para state

management, whilst not communicating to shareholders publicly re the apparent delays, are working hard behind the scenes [applying pressure] and remain confident of the requisite approvals being granted in a timely manner [conversation with management]

in a nutshell, the recent change of government at state level is delaying the approval processes of all companies in para state, not just avanco

avanco's trial mining licence application patiently awaits the approval process to recommence

it is important to remember that mining is the principal source of revenue for para state (and further the largest fe mine in the universe and 5 of the 10 largest iocg deposits in the universe are located in para state and all within 100km of avanco's rio verde and serra verde properties)

2. jorc resource upgrade

although a jorc resource upgrade was alluded to by avanco in 2010 anns, as being expected toward the end of 2010, based on the 34-hole 2010 diamond core drilling program at the antas sth hgz, no work specifically toward this has or is currently being undertaken by avanco (with the exception of the current drilling program, which will obviously lead to resource upgrades at some point in time in the future)

ie there is no jorc resource upgrade overdue or expected anytime in the near future - avanco is concentrating on the current drilling program, indeed the institutional investors who ponied up the cash recently, did so on the proviso that avanco concentrate solely on the current 50,000m drilling program (such that even though they recognise the 'easy' money that can be made from mining the dso hgz ore, they want the focus to be the drilling program [conversation with management])

however, the current jorc indicated and inferred resource (oxide and transitional) at antas sth stands at 7.977mt @ 0.83% cu for 66,100t cu, using 0.3% cu cut-off (6.254mt @ 0.71% cu indicated, 1.723mt @ 1.27% cu inferred), which incls the antas sth hgz, with a current jorc indicated and inferred resource of 0.21mt @ 11.65% Cu for 24,500t cu (0.089mt @ 12.72% cu indicated, 0.121mt @ 10.87% cu inferred) - the hgz extends over a strike length of 250m, with the overall antas sth cu oxide deposit strike length extending over 2,000m (see ann dated 12/01/09)

note the larger tonnage, lower grade cu cut-off jorc resource at antas sth (17.622mt @ 0.48% cu, using 0.1% cu cut-off) is being ignored for the purposes of this discussion for the following reasons - these are resources, not reserves (jorc reserves are economically mineable deposits, rather than simple in-situ deposits) and conservatism is being applied here, and in announcing the jorc resource avanco stated it was targeting a resource of 20mt @ +0.8% cu (oxide) (ann dated 12/01/09) and the xstrata deal uses a theoretical jorc resource (for the back-in) of 100mt @ 0.75% cu (see ann dated 21/03/11 footnote)

following on from the 2010 diamond core drilling program undertaken at the antas sth hgz, the hgz has been determined to extend to over 300m (see 2010 sep qrtly rep, dated 29/10/10)

results received so far in the current 25,000m antas sth drilling program have extended the hgz a further approx 75m to approx 375m (see ann dated 11/05/11)

the hgz has increased from the jorc resource 250m to the current 375m, an increase of 50% - a basic extrapolation would suggest a potential hgz resource currently standing at 0.315mt @ 11.65% cu for 36,750t cu (this however does not take into account the grades or the intersected lengths from the 2010 and current drilling programs), a simplistic and flawed approach, nonetheless suitable for the purposes of this discussion

the overall size of the oxide orebody at antas sth has also been increased due to the current drilling program (this however will not be incl in the guesstimate)

potential current global rio verde resource (incl current jorc, extrapolated additional hgz non-jorc and historical non-jorc, non-ni 43-101 resource [for antas nth])

current jorc resource 7.977mt @ 0.83% cu for 66,100t cu (incl current hgz jorc resource of 24,500t cu)
extrapolated additional non-jorc hgz 50% increase resource 0.105mt @ 11.65% cu for 12,250t cu
historic non-jorc, non-ni 43-101 resource at antas nth 5.07mt @ 0.8% cu & 0.24 g/t au for approx 40,500t cu & approx 39,000ozs au (based on noranda's 2000/2001 9-hole, 2,834.75m drilling program and barrick's 1999 3-hole, 494.2m drilling programs [see amec ni 43-101 tech report pp 6-1, 10-4, 10-6, 11-3, 11-6 - note the amec report states the au grades as 0.24 g/t and also 0.3 g/t, with this apparent discrepancy (possibly rounding up) the lower 0.24 g/t au is being used here])

for a potential current total in-situ non-jorc resource of approx 13.152mt @ 0.9% cu for 119,000t cu & 5.07mt @ 0.24 g/t au for approx 39,000ozs au [noting that it is non-jorc and a resource guesstimation not jorc reserve, ie in-situ guesstimation not mineable reserve]

3. recent deal with xstrata

put simply the recent deal with xstrata to pick up extra tenements adjoining (and consequently expanding) the rio verde property is a testament to managements deal-making abilities - a big plus

an additional 14km prospective for cu with the only costs to avanco being those associated with the drilling underway and to be undertaken on these additional tenements and the annual upkeep cost of the tenements (approx 2 - 4 reals per hectare per year) [conversation with management]

be aware that xstrata are not obliged to contribute anything financially toward these tenements (as they are now 100% avanco's responsibility), unless they choose to exercise their right (through an option) to 'back-in' to 70% of the properties the subject of this deal, and this is only if avanco "discover a copper resource with potential to support the production of 80,000 tonnes per annum of copper metal for a life-of-mine greater than 8 years", which avanco, in a footnote, compares to 100mt @ 0.75% cu (see ann dated 21/03/11, pp 2, 3) - cf this with supra, avanco's current jorc and non-jorc resources

if avanco discovers a cu resource, on these additional properties, capable of supporting, for eg, 60,000t cu for lom greater than 8 years, xstrata does not have a right to back-in

the back-in targets are also a good indicator to avanco of the type of cu operations that xstrata would potentially consider mineable re a takeover scenario (70%, or 56,000t pa production cu with lom greater than 8 years)

avanco has allocated 5,000m of the current drilling program toward the rio verde extension properties that are subject to a potential 'back-in' option - it is highly unlikely that 5,000m of drilling will lead to a resource of 100mt @ 0.75% cu, ie, it will be some time before a resource of that size, if it is present, will be determined through drilling programs

/contd

 

[happytown]

4. vale fe drilling

whilst the drilling has now been underway for almost 3 months, the drilling results will be released at vale's discretion (see ann dated 15/04/11, p1 and footnote p2)

a quick perusal of the vale website indicates it is not a company that releases regular drilling updates, it has many operations (indeed, as of several weeks ago, there was no indication anywhere on their site of the deal with avanco - at least no indication that could be located)

for avanco it is all about whether drilling proves up a measured and indicated resource (such that a measured and indicated resource will trigger royalty payments to avanco)

as far as the vale deal is concerned, they are required by the end of august 2011, to have drilled at least 2,500m at trindade nth (where 5 rigs are currently drilling) and pay avanco us$600k for the second year of the option (see mar qrtly rep, dated 27/04/11, p 3)

the current level of drilling by vale is unknown beyond 5 rigs currently operating - how many metres are they drilling [scott thinks it may be 5,000m], how tight is the drill-spacing, is this merely exploratory, will it lead to a measured and indicated resource, or just an intial inferred or indicated and inferred, thus requiring further drilling to estimate a measured and indicated resource - don't forget vale has a potential 3 year option, we are only approaching the end of the first year

5. current drilling program

the anns relating to the current 50,000m drilling program are:

24/11/10 - "major drilling program commenced"
31/01/11 - "dec 2010 quarterly report" (rio verde antas sth 5 holes completed, 1 hole aborted, 2 holes in progress, 2 rigs, no assays)
02/03/11 - "carajas copper exploration update" (rio verde antas sth 14 holes completed, 2 rigs, assays for first 4 holes; serra verde pedro 2 holes completed, 1 rig, no assays)
13/04/11 - "rio verde drilling expanded" (rio verde antas sth 3 rigs, 16 holes core at lab; rio verde extension agua boa 1 rig; serra verde pedro 1 rig)
14/04/11 - "serra verde copper project drilling update" (serra verde pedro 9 holes completed, 1 hole in progress, 2 rigs, 1 holes core at lab)
27/04/11 - "mar 2011 quarterly report" (rio verde anatas sth 24 holes completed, 3 holes in progress, 18 holes core at lab, 2 holes core in yard; rio verde capivara 2 holes completed, core at lab; rio verde extension agua boa 1 hole in progress; serra verde pedro 10 holes completed, 1 hole in progress, 9 holes core at lab, 1 holes core in yard)
11/05/11 - "rio verde project high grade zone open along strike" (rio verde antas sth 24 holes completed, 3 holes in progress, assays for further 11 holes, 7 holes core at lab, 2 holes core in yard)
20/05/11 - "new copper discovery at the serra verde project" (serra verde pedro 20 holes completed, 1 hole in progress, assays for first 9 holes, 3 holes NSI, 8 holes core at lab, 3 holes core in yard)

total completed holes to date:

rio verde antas sth - 24 [1,827.05m = av 76.1m]
rio verde capivara - 2 [95.5m = av 47.8m]
serra verde pedro - 20 [2,156.5m = av 107.8m]

total - 46 [4,079.05m = av 107.8m]

total holes with assays received to date:

rio verde antas sth - 15 [15 of 15 holes confirmed cu intersections]
serra verde pedro - 9 [6 of 9 holes confirmed cu intersections]

total - 24 [21 of 24 holes confirmed cu intersections, ie approx 88% of holes drilled with assays received have confirmed cu intersected]

the total assay results reported thus far are:

ARVD-103, 60.4m, 2.1m @ 9.21% cu from 38.0m [incl 0.7m @ 23.72% cu from 39.4m]
ARVD-104, 44.1m, 18.7m @ 0.4% cu from 2.0m
ARVD-105, 70.0m, 11.0m @ 0.3% cu from 16.0m & 1.0m @ 18.83% cu from 57.4m
ARVD-106, 74.9m, 25.0m @ 0.2% cu from 9.0m, 5.0m @ 0.62% cu from 44.0m, 0.8m @ 18.98% cu from 62.0m & 1.2m @ 0.51% cu from 62.8m (originally ARVD-106 was aborted due to core loss and was replaced by ARVD-106A, which is now known as ARVD-106)
ARVD-107, 50.0m, 18.4m @ 0.58% cu from 0.6m & 13.0m @ 0.55% cu from 32.0m
ARVD-108, 74.1m, 27.35m @ 0.26% cu from 0.65m
ARVD-109, 106.3m, 41.2m @ 0.25% cu from 2.8m
ARVD-110, 141.6m, 14.2m @ 0.38% cu from 5.8m, 4.0m @ 0.54% cu from 51.0m, 0.6m @ 5.53% cu from 63.1m & 1.0m @ 1.28% cu from 104.0m
ARVD-111, 69.0m, 23.0m @ 0.56% cu from 22.0m [incl 5.05m @ 1.12% cu from 29.95m] & 6.0m @ 0.46% cu from 50.0m
ARVD-112, 70.5m, 27.6m @ 0.65% cu from 3.7m & 9.0m @ 0.99% cu from 41.0m
ARVD-113, 74.5m, 38.0m @ 1.53% cu from surface [incl 3.0m @ 2.82% cu from 20.0m]
ARVD-114, 71.8m, 6.5m @ 0.38% cu from 21.5m, 1.85m @ 28.17% cu from 59.7m & 2.45m @ 0.54% cu from 61.55m
ARVD-115, 61.2m, 6.0m @ 0.45% cu from 11.0m, 1.2m @ 0.44% cu from 20.0m & 0.8m @ 26.75% cu from 21.2m
ARVD-116, 101.3m, 2.75m @ 3.6% cu from 91.95m [incl 0.5m @ 14.31% cu from 91.95m]
ARVD-117, 60.35m, 3.9m @ 6.05% cu from 43.1m [incl 0.7m @ 17.63% cu from 43.1m] & 1.4m @ 1.87% cu from 93.3m

ASVD-01, 70.3m, 4.0m @ 0.16% cu from 20.0m
ASVD-02, 117.4m, 4.0m @ 1.31% cu from 72.95m, 0.8m @ 0.77% cu from 78.95m & 1.0m @ 0.79% cu from 82.0m
ASVD-03, 81.0m, 2.5m @ 2.86% cu from 46.25m
ASVD-04, 96.0m, 2.0m @ 0.35% cu from 11.0m
ASVD-05, 132.5m, 10.8m @ 1.84% cu from 100.2m [incl 3.15m @ 5.65% cu from 107.85m (incl 0.75m @ 18.94% cu from 108.85m)]
ASVD-06, 91.0m, 1.0m @ 7.28% cu from 60.0m, 1.9m @ 0.92% cu from 63.0m & 2.53m @ 1.38% cu from 72.07m [incl 0.93m @ 3.26% cu from 72.07m]
ASVD-07, 90.6m, NSI
ASVD-08, 124.8m, NSI
ASVD-09, 105.6m, NSI

some points of note about the current drilling:

a) after the very reliable 2010 34-hole diamond core drilling program contract had been completed (see ann dated 21/09/10 - "recently completed"), avanco 'let the drilling contractor go', who moved on to other work with their experienced crew and reliable rig/s, avanco began planning a 10,000m follow-up drilling program (see 2010 sep qrtly rep, dated 29/10/10), avanco were then approached by institutional investors, the $20m placement/funding was agreed to and carried out (see ann dated 08/11/10 - on the provisio stated above that the major drilling program was to commence asap [conversation with management]), and then the 50,000m drilling program commenced (see ann dated 24/11/10 - "drilling has commenced") - due to the rapid nature of the change in drilling program, the urgency of commencement, and the unavailability of the preferred drilling contractors, avanco had to do with drilling contractors who were not experienced with the antas sth hgz and with rigs that were not ideally suited to the program (resulting in a very slow start to the drilling program), thankfully avanco have now been able to harness their preferred drilling contractors, who have recently become available

b) the wet season was particularly severe - the local para state rag, o liberal, ran stories and editorials detailing the significant flooding in and around parauapebas (eg, "heavy rains cause flooding and damage in parauapebas", 12/03/11; "heavy rains punish parauapebas" - '… besides the urban areas, many rural communities were affected by the flooding …', 17/03/11)

c) the recent NSR(no significant result)/NSI(no significant intercept)'s recorded at serra verde (ASVD-07 - ASVD-09) are not uncommon during exploratory drilling, indeed both avanco's 2008 and 2010 drilling programs returned NSI's (eg 2 of 34 holes drilled in the 2010 antas sth hgz drilling program were reported as 'no significant value' (see sep 2010 qrtly rep, p6, dated 29/10/10), and the 2008 rc/diamond core programs at antas sth reported at least 12 NSI's)

d) the high grade intercepts are continuing and being encountered outside the current hgz at rio verde antas sth, as well as at the new serra verde pedro copper discovery:

1.85m @ 28.17% cu from 59.7m (ARVD-114, hgz extension)
0.8m @ 26.75% cu from 21.2m (ARVD-115, hgz extension)
0.7m @ 23.72% cu from 39.4m (ARVD-103, hgz)
0.8m @ 18.98% cu from 62.0m (ARVD-106, hgz)
0.75m @ 18.94% cu from 108.85m (ASVD-05, new potential hgz serra verde pedro discovery)
1.0m @ 18.83% cu from 57.4m (ARVD-105, hgz)
0.7m @ 17.63% cu from 43.1m (ARVD-117, hgz extension)
0.5m @ 14.31% cu from 91.95m (ARVD-116, hgz extension)
1.0m @ 7.28% cu from 60.0m (ASVD-06, new potential hgz serra verde pedro discovery)
0.6m @ 5.53% cu from 63.1m (ARVD-110, potential new hgz at antas sth)

10 of 24 holes (approx 41.6%) with assays reported resulting in intersections greater than 5.0% cu

/cont'd

 

[happytown]

there have been some discrepancies re the initial assessment of core coming out of the ground v assay results returned from the lab, as follows (serra verde pedro holes):

ASVD-02 reported as intersecting "7.23m of primary copper sulphide (chalcopyrite) from 72.87m and a further 0.75m of primary copper sulphide (chalcopyrite) from 90.45m" (see ann dated 02/03/11, p1 and 14/04/11, p1 - "0.65m of mineralisation from 90.45m")

ASVD-02 assay results from lab reported as 4.0m @ 1.31% cu from 72.95m, 0.8m @ 0.77% cu from 78.95m & 1.0m @ 0.79% cu from 82.0m (see ann dated 20/05/11, p 3) - no assay results reported from 90.45m

ASVD-05 reported as "intersected the mineralised zone (disseminated and semi-massive sulphides) over 13.95m and is terminated by 0.8m of semi-massive sulphide - chalcopyrite" (see ann dated 14/04/11, p1)

ASVD-05 assay results from lab reported as 10.8m @ 1.84% cu from 100.2m [incl 3.15m @ 5.65% cu from 107.85m (incl 0.75m @ 18.94% cu from 108.85m)] (see ann dated 20/05/11, p3) - the 13.95m appears to be the 10.8m intersection plus the 3.15m higher grade intersection included in the 10.8m, ie the true intersection (10.8m) had been originally overstated by approx 29%

further there have been some discrepancies reported in the assay results, as follows (rio verde antas sth holes):

ARVD-103 assays reported as 2.1m @ 9.21% cu from 38.0m (see ann dated 02/03/11, pp 1,2 & 7 & 2011 mar qrtly rep, p6, dated 27/04/11), but also reported as 2.1m @ 9.67% cu from 38.0m (see 2011 mar qrtly rep, pp 1 & 2, dated 27/04/11) - note the 2011 mar qrtly rep reports it as both 9.21% & 9.67% cu

ARVD-111 assays reported as incl 23.0m @ 0.56% cu from 22.0 - 55.0m, ie 33.0m (see ann dated 11/05/11, p4)

ARVD-117 assays reported as 3.9m @ 6.05% cu from 43.10m [incl 0.7m @ 17.63% cu from 43.10m] & 1.40m @ 1.87% cu from 93.30m (see ann dated 11/05/11, p5), yet the hole was reported as drilled to a depth of 60.35m (see anns dated 27/04/11 mar 2011 qrtly rep, p6 & 11/05/11, p5), ie cu intersection reported approx 33m beyond eoh

out of 21 holes with assays reported so far confirming cu intersections, 5 holes (or approx 23.8%) have apparent discrepancies (which may seem minor), management needs to eliminate this sloppiness [note, there also appear to be discrepancies as between drilling details reported in avanco's 2007 prospectus (as well a recent avanco ann) and the historic drilling details as reported in the amec 2006 ni 43-101 technical report on the rio verde and serra verde properties, which list all the details of the historic holes at rio and serra]

now looking at the drilling targets:

a) capivara - 2 shallow scout holes have been drilled in the current program testing "outcropping mineralisation", with both identifying "near surface mineralisation" (see ann dated 11/05/11, p2), with ACAD-01 drilled to a depth of 44.85m and ACAD-02 (10m W) drilled to a depth of 50.65m (see 2011 mar qrtly rep, p7, dated 27/05/11)

both barrick and noranda drilled 1 hole each at capivara (approx 250-300m NW and SW of avanco's recent holes - barrick's RVD-14 (NW) drilled to a depth of 206.85m and noranda's NRV-01-15 (SW) drilled to a depth of 430.15m, with both holes returning NSI (see amec tech report pp11-3 & 11-6)

madalosso (that would be antonio, you'll find him listed on the front of avanco's anns under directors/officers) in a 2000 internal barrick document described capivara as "defined by a massive strongly oxidized cu-au vein that outcropped, and also by a strong airborne tem anomaly in the vicinity" - by the time amec visited capivara in 2005/2006 "the vein was illegally extracted by garimpeiros", whilst "the trench that was left behind (now flooded) measures approximately 8m by 3m", however "a small stockpile of malachite-chrysocolla rich vein material was left behind" (amec tech rep, p9-1), a picture showing this stockpile looks like a giant sneezed all over the ground (picture, p9-2 - see 1st pic below)

an outcrop (picture - see 2nd pic below) at one end of the trench described by amec as "hydrothermally-altered metabasalts with thin (2cm to 4cm thick) veins of chalcocite", was rock-chip sampled with the result 2.45% cu and 0.56ppm au (amec tech report, pp 9-2 & 9-3) - the amec mineralised outcrop is reported as being approx 30 and 40m W and 42m S of the recently drilled avanco holes (see amec tech report, p14-2)

b) drilling at depth below the hgz - some of this drilling (at up to 300m depth) will be targeting (from the hgz) a hill next to the hgz (but not part of the hgz) which covers an area of approx 2.5 sq km, as management believe it to be structurally significant and a possible source of the shallower antas sth orebody [conversation with management] - the deepest hole drilled in the 2010 hgz drilling program was only to a downhole depth of 82.7m (ARVD-072)

as far as historical holes drilled at antas sth, noranda drilled 5 holes (diamond core) and barrack drilled 11 holes (6 diamond core, 5 rc), with the closest to the current hgz being noranda's NRV-00-03, which after a change of azimuth became NRV-00-04, and barrick's RVD-08 and RVD-09

the three historical holes were drilled to downhole depths of between 196.35m and 287.0m

NRV-00-04 was drilled to a depth of 196.35m (3m @ 0.48% cu & 0.83 g/t au from 51.5m & 1.05m @ 1.37% cu & 0.39 g/t au from 92.15m) and is approx 6m W and 35m S of ARVD-082 and approx 19m E and 24m S of ARVD-086 [incl 1.0m @ 23.6% cu from 58.0m]

RVD-08 was drilled to a depth of 287.0m (17.24m @ 0.42% cu from 55.0m [incl 1.0m @ 1.44% cu from 62.37m] & 0.95m @ 1.8% cu & 0.35 g/t au from 98.85m) and is approx 6m E and 26m S of ARVD-123 (awaiting assays), approx 6m E and 46m S of ARVD-125 (awaiting assays), approx 39m W and 1m S of ARVD-117 [incl 0.7m @ 17.63% cu from 43.1m] and approx 39m W and 11m S of ARVD-115 [incl 0.8m @ 26.75% cu from 21.2m]

RVD-09 was drilled to a depth of 217.3m (34.8m @ 0.28% cu from 4.9m) and is approx 76m W and 5m S of ARVD-116 [incl 0.5m @ 14.31% cu from 91.95m] and approx 76m W and 15m S of ARVD-114 [1.85m @ 28.17% cu from 59.7m]

c) ongoing drilling at the hgz - the results from ARVD-123 and ARVD-125 will be crucial for at least 2 reasons, if they come back with high-grade cu intersections it will increase the hgz orebody length to the NW from the current extension provided by ARVD-115 and ARVD-117, and further, beyond ARVD-123 and ARVD-125 to the NW (and recognising the narrow nature of the hgz exposed by avanco's tightly spaced drilling) there is potentially several hundred metres of potential NW-trending possible hgz as yet to be tested by drilling

 

[happytown]

d) iocg targets

i) clovis - madalosso (supra), again in the 2000 internal barrick document "suggested that the clovis [one of the targets for the current drilling program] showing at rio verde, which occurs within a magnetite-rich breccia zone (small breccia pipe) that cuts a mineralized post-tectonic granite is an olympic dam-type iocg deposit and is similar to one of the deposits at sossego" (amec tech report p 8-1)

10 historic diamond core holes were drilled at clovis (7 holes for 1,712.8m by noranda and 3 holes for 727.6m by barrick), with 3 holes recording NSI

the holes recording cu intersections were:

RVD-04 (b), 237.5m, 13.85m @ 0.76% cu from 10.5m [incl 1.0m @ 4.5% cu from 21.3m] & 22.02m @ 1.13% cu from 75.08m [incl 0.75m @ 13.6% cu & 2.78 g/t au from 83.94m]
NRV-01-26 (n), 147.3m, 1.3m @ 2.4% cu & 0.34 g/t au from 56.8m
NRV-01-13 (n), 261.95m, 22.15m @ 0.51% cu from 25m & 24.8m @ 0.59% cu from 51.7m
NRV-01-24 (n), 250.1m, 3.5m @ 1.23% cu from 117.5m
NRV-01-22 (n), 300.4m, 23m @ 0.49% cu from 8.0m
RVD-15 (b), 344.35m, 0.9m @ 1.4% cu & 0.1 g/t au from 243.85m

and approx 2km W, NRV-01-28 (n), 224.55m, 6.5m @ 1.05% cu from 137.5m (see amec tech report, pp 10-4, 10-6, 11-3, 11-6)

interestingly no holes have been drilled in the classic NW-SE antas sth hgz trend aligning with RVD-04 [incl 0.75m @ 13.6% cu]

ii) serra verde - as previously stated, inv metals (who have a jv with teck cominco on properties adjoining the northern border of avanco's serra verde property) described the serra verde historic garimpo open pit as an io(poor)cgmo deposit (the only known one of its kind in carajas), which tend to be relatively small in tonnage though high in grade, and that formed in association with large-tonnage, low-grade io(rich)cg mineralisation (see inv metals ni 43-101 technical report on rio novo property, dated 27/10/10, p 23)

the garimpo pit (see 1st pic), aka, valdomiro garimpo, 'historical mining commenced in the gold-enriched supergene zone on top of a massive sulfide lens … reported in 2005 that the massive sulfide lens measured 20m by 30m by 6m … reported that during a reconnaissance study conducted in 2001, that there were in fact two 20 to 30m long lenses, the current size of the garimpo (now idle) measures approx 170m long by 30m in width … depth is estimated to be 50 to 60m … ground tem conducted by barrick over the garimpo indicates the presence of a strong conductor approximately 150m to 200m below surface; however the limited amount of drilling in the area did not intersect massive sulfides. it is possible that the plunge component of the lens was not considered when the drill program was laid out. madalosso [in 2000] collected sixteen channel samples averaging 1m long in the northern (deepest) area of the pit … the impression of a southeasterly plunge component to the lens' (see amec tech report, pp 9-6, 9-7)

the 16 channel samples (of approx 1m lengths - see 2nd pic) results were:

approx 1m @ 112.5 g/t au, 2.35% cu & 69,000ppm mo
approx 1m @ 1.8 g/t au & 1.14% cu
approx 1 m @ 42.5 g/t au & 6.6% cu
approx 1m @ 0.5 g/t au & 28.5% cu
approx 1m @ 110 g/t au & 8.4% cu - in total reported as 4.3m @ 48.4 g/t au & 8.92% cu

approx 1m @ 12.2 g/t au & 16.95% cu
approx 1m @ 2.1 g/t au & 13.5% cu
approx 1m @ 1.0 g/t au & 1.14% cu
approx 1m @ 25.9% cu & 6 g/t ag
approx 1m @ 0.4 g/t au & 26.4% cu - in total reported as 4.5m @ 4.1 g/t au & 16.47% cu

approx 1m @ 0.5 g/t au & 24.5% cu
approx 1m @ 29.45 g/t au & 17.9% cu
approx 1m @ 0.5 g/t au & 23.35% cu
approx 1m @ 0.2 g/t au & 25.9% cu
approx 1m @ 45.6 g/t au & 7.53% cu
approx 1m @ 0.3 g/t au & 24.49% cu - in total reported as 6.5m @ 10.9 g/t au & 21.1% cu (see amec tech report, p 9-9)

barrick carried out a 5-hole drilling program in the area of the garimpo pit (see 3rd pic) with the following results:

SVD-01, 209.6m, 29.8m @ 0.47% cu & 0.2 g/t au from 109.38m [incl 20.5m @ 0.61% cu & 0.14 g/t au from 109.38m] & 31.87m @ 0.33% cu & 0.2 g/t au from 150.8m [incl 14.27m @ 0.44% cu & 0.4 g/t au from 150.8m]
SVD-02, 165.86m, 24.9m @ 0.43% cu from 4.7m [incl 12.5m @ 0.97% cu from 4.7m] & 38.63m @ 0.16% cu from 80.24m [incl 5.16m @ 0.67% cu from 80.24m]
SVD-03, 231.5m, 20.94m @ 0.26% cu & 0.1 g/t au from 27.24m, 9.57m @ 0.38% cu & 0.4 g/t au from 125.75m, 13.01m @ 0.22% cu from 191.49m & 14.44m @ 0.26% cu from 212.76m
SVD-04, 250.5m, 6.75m @ 0.14% cu from 2.13m, 6.9m @ 0.39% cu from 120.6m & 7.88m @ 0.13% cu from 154.0m
SVD-05, 391.5m, 20.05m @ 0.17% cu & 0.1 g/t au from 296.6m (see amec report pp 10-6, 11-7)

 

[happytown]

e) antas nth - likely to be drilled by rc rigs due to previous avanco diamond core drilling in 2008 having to be suspended due to core recovery failure

as discussed supra, noranda and barrick undertook drilling at antas nth, with noranda completing a non-compliant resource estimate, at least 3 stringer veins were intersected (see 1st pic below), with a section drawn through 7800E showing the main stringer 'a' having a true thickness of approx 40m and being thought to be open at depth (see amec tech report, pp 9-5, 9-6 - see 2nd pic below)

the historic drill results from antas nth are:

RVD-02 (b), 147.3m, 21.41m @ 1.5% cu & 0.39 g/t au from 125.89m (to eoh)
RVD-06 (b), 145.25m, 21.23m @ 0.65% cu from 3.5m [incl 4.53m @ 2.1% cu from 20.2m]
RVD-11 (b), 201.65m, 50.72m @ 1.42% cu & 0.48 g/t au from 73.85m [incl 0.6m @ 11.3% cu & 1.86 g/t au from 118.29m]
RVD-02-A (n), 132.15m, 75.81m @ 0.9% cu & 0.47 g/t au from 125.89m - note this noranda hole is a continuation of the barrick hole RVD-02
NRV-00-01 (n), 348.2m, 55.34m @ 0.68% cu & 0.16 g/t au from 106.2m [incl 18.75m @ 1.03% cu & 0.2 g/t au from 106.2m]
NRV-00-02 (n), 288.75m, 28.79m @ 1.01% cu & 0.21 g/t au from 158.21m
NRV-00-05 (n), 381.5m, 11.94m @ 0.71% cu & 0.11 g/t au from 228.46m
NRV-00-08 (n), 434.75m, 4.39m @ 1.58% cu & 0.77 g/t au from 92.77m
NRV-01-11 (n), 442.5m, 6.01m @ 1.43% cu & 0.14 g/t au from 360.65m
NRV-01-14 (n), 300.6m, 11.07m @ 1.0% cu & 0.5 g/t au from 164.43m
NRV-01-23 (n), 219.2m, 1.5m @ 2.47% cu & 0.88 g/t au from 14.75m
NRV-01-25 (n), 287.1m, 9.6m @ 0.79% cu & 0.04 g/t au from 175.9m (see amec tech report, pp 10-4, 10-6, 11-3, 11-6)

note the high-grade intersection in RVD-11 of 0.6m @ 11.3% cu from 118.29m

f) gold intersections at antas sth

from the historic drilling at antas sth carried out by noranda and barrick, one barrick hole had a significant au grade intersection, RVD-07 (located in the far NW extremity of the current antas sth orebody - not the hgz)

from the 16 holes in total drilled at antas sth by barrick and noranda, 9 returned au intersections, being (and not incl the cu intersections):

RVD-01 (b), 214.0m, 4.12m @ 0.22 g/t au from 105.14m
RVP-03 (b), 1.0m @ 1.32 g/t au from 20m & 1.0m @ 1.32 g/t au from 23m - note the P indicates rc hole
RVD-07 (b), 182.7m, 1.0m @ 9.44 g/t au from 17.4m
RVD-08 (b), 287.0m, 0.95m @ 0.35 g/t au from 98.85m
NRV-00-04 (n), 196.35m, 3.0m @ 0.83 g/t au from 51.5m & 1.05m @ 0.39 g/t au from 92.15m
NRV-00-06 (n), 306.25m, 5.3m @ 0.35 g/t au from 85.9m & 9.9m @ 0.05 g/t au from 118.3m
NRV-00-09 (n), 309.75m, 52m @ 0.06 g/t au from surface [incl 28.75m @ 0.08 g/t au from surface]
NRV-01-10 (n), 211.0m, 10.05m @ 0.1 g/t au from 115.9m
NRV-01-16 (n), 339.7m, 1.3m @ 0.02 g/t au from 95.05m (see amec tech report, pp 10-4, 10-6, 11-3, 11-6)

all historic holes at rio verde are seen in 3rd pic below

 

[happytown]

6) brief comparisons of relevant iocg deposits, by taking a brief look at olympic dam, cristilano and sossego

olympic dam - initially 9 holes were drilled in 1976 (RD1, RD3-10), with the results being (not incl the depth of intersections):

RD1 - 38m @ 1.05% cu
RD3 - NSI
RD4 - NSI
RD5 - 92m @ 1.01% cu
RD6 - NSI
RD7 - NSI
RD8 - 14m @ 1.2% cu
RD9 - 94m @ 0.38% cu
RD10 - 170m @ 2.12% cu (see asx-listed tasman resources preso, "the vulcan project", dated 02/05/11)

cristalino - approx 20km S of rio verde

'mineralisation is concentrated in a NW-SE trending, sinsitral transpressive zone of shearing over a drilled length of 2,200m and thickness ranging from 10s of metres to 500m. the shear zone is several hundreds of metres in width and is a splay of the carajas fault. the ore zone is generally brecciated and is found in the volcanics below the iron formation and in the lower sections of the iron formation itself. in general the iron formation forms the upper limit to ore and may have acted as a capping … two styles of mineralisation: (i) 60% of which is crosscutting stockwork veins and veinlets, and (ii) 40% breccia ore where the breccia fragments are surrounded by sulphide veins and a sulphide matrix … principal sulphides are chalcopyrite and pyrite in a 2:1 to 3:1 ratio. the copper was introduced after the magnetite and amphibolite alteration, although the highest grades are associated with the amphibole zones … grid geochemistry and geophysics from 1984-87 led to 2 anomalies being drilled in 1988 with some 13 holes in two prospects. the second phase of work was commenced in 1997-98 with more grid mapping, geochemistry and geophysics, culminating in a drill intersection of 38m @ 1.4% cu, 0.25 g/t au between 76 and 114m depth … according to cvrd, the reserves amount to 261mt @ 0.73% cu' (see porter geoconsultancy website, iocg 07, iron oxide copper gold in south america, 4 to 13 june 2007, international study tour)

sossego - approx 40km W of cristalino

'mineralisation is hosted along a regional WNW-ESE striking shear zone … ore is located in two adjacent centres, sossego hill (the sossego-curral zones) and the larger sequeirinho (the pista-sequeirinho-baiano zones) which has a length of 1.6km and thickness of 150 to 200 m in its central section … dominant sulphides are chalcopyrite with subsidiary siegenite and millerite, and minor pyrrohtite and pyrite in the sequeirinho orebodies, although pyrite is relatively abundant in the sossoego hill bodies … at the commencement of mining in 2004, reserves were quoted by cvrd as 250mt @ 1.0% cu (see porter geoconsultancy website, iocg 07, iron oxide copper gold in south america, 4 to 13 june 2007, international study tour)

7. suggested reading (and this represents a small portion) for those interested in some papers on sera verde, the immediate region surrounding avanco's properties and vale's history in the immediate region:

"mineralization and hydrothermal alteration related to the cupro-auriferous sera verde deposit, carajas mineral province", reis & villas, revista brasileira de geocienias, vol 32(1) 2002, pp 69-86 (portugese, requires translation, free translation tools on net - yes this is about serra verde)
"palladium and platinum minerals form the serra pelada au-pd-pt deposit, carajas mineral province, northern brazil", cabral, lehman, kwitko-ribeiro & costa, the canadian mineralogist, vol 40 2002, pp 1,451 - 1,463
"predicting the impacts of sera leste: a case study in companhia vale do rio doce's influence on southern para", hayes, spring 2007 (details briefly vale's history in the curionopolis-parauapebas region)
"radar, geologic, airborne gamma ray and landsat tm digital data intergration for geological mapping of the estrela granite complex - para (pa)", inpe-9858-tdi/868, sao jose dos campos, 2003 (149pp portugese, requires translation)
"spacial and temporal zoning of hydrothermal alteration and mineralization in the sossego iron oxide-copper-gold deposit, carajas mineral province, brazil: paragenesis and stable isotope constraints", monteiro, xavier, de carvalho, hitzman, johnson, filho & torresi, miner deposita, vol 43 2008, pp 129 - 159

cheers

 

[misterS]

Flurnt/happytown - Seeing that information gathered together and placed in historical context with some interesting observations was great to read. Thanks for generously sharing your work.

cheers

 

[happytown]

cheers misterS,

the carajas is such an exploration rich environment

here are some pics from the crpm

in the 1st pic, 220 is the serra verde historic open pit, with the red splotch being the estrella granite complex

the 2nd and 3rd pics are cross-sections indicated on the 1st pic by the straight black line running from top to bottom

in the 4th and 5th pics, the black square is the square comprising of the first pic (which comprises all of rio verde and the new rio verde extension as well as serra verde - by memory trindade nth is just out of the 1st pic)

cheers

 

[happytown]

for some reason the 1st pic in the above post will not upload

few more pics,

geological map of the carajas,

some landsat images,

n-s schematic of the serra verde deposit,

surrounding area geology of the serra verde deposit

cheers

 

[enrich]

Thankyou for sharing your wealth of knowledge Happytown a lot of it goes over my head but what i get out of it is be patient and rewards will come here with AVB Once again thankyou and WELL DONE

 

[Donga]

Thankyou for sharing your wealth of knowledge Happytown a lot of it goes over my head but what i get out of it is be patient and rewards will come here with AVB Once again thankyou and WELL DONE

Many thanks Happytown - wonderful effort. Recall you from nearly two years back and did very well from your coverage of the stock at the time, think it was PRU. Rarely visit ASF these days, this review has made it across to the forum I now play with (as Upmarket) and these posts of yours on AVB were referenced, may have to get in the habit of ASF again.

Good to see you firing on all cylinders with AVB and thanks again.

 

[redned71]

G'day happytown.

Just wanted to add my thanks for what is the best & most informative post I think I've ever read online. Much appreciated.

SWC posted the link on HC is how I found this. So I've now joined this forum. If this is an exampole of the quality of posters here, it must be a great site.

Looking forward to an interesting time ahead.

cheers,

ned.

 

[happytown]

cheers enrich,

here's a couple of books i have found interesting in gaining a better understanding of exploration activities:

field geophysics (john milsom);
geological methods in mineral exploration and mining (roger marjoribanks);
geological structures and maps (richard lisle);
introduction to mineral exploration (moon, whateley & evans)

and there is always

mining valuation handbook (victor rudenno)

generally speaking, feel free to ask any questions

cheers donga (upmarket, sign of the road travelled i take it)

cheers redned

and no i am not an example of the quality of posters here, there are others far more knowledgeable and generous with their posting

just a heads-up with posting over here, the mods here would delete a large number of posts on the hc thread if they were posted here (for low-content, ramping, unsubstantiated price targets, etc)

the upside of that is you don't have to sift a lot, the downside is sometimes this thread resembles a ghost town

i post on both forums, with the lengthier posts and pics over here

and cheers for posting a link to here swc

with the latest results released last week am currently updating info to post here, as well as an updated drill hole location grid for the antas sth deep drilling showing the historic holes as well (posted some drill hole location grids at post 72 after i found the co's lacking somewhat)

cheers

 

[Ding]

Gday,

I am a AVB holder and i consider myself patient but I am getting a little worried about the worlds markets and the risk that AVB will fold in the near future. Now is a great time to buy or a time to get out and cut my losses???????

 

[4thekids]

Gday,

I am a AVB holder and i consider myself patient but I am getting a little worried about the worlds markets and the risk that AVB will fold in the near future. Now is a great time to buy or a time to get out and cut my losses???????

I hope you bought at the low!!

4TK

 

[warthogjump]

Gday,

I am a AVB holder and i consider myself patient but I am getting a little worried about the worlds markets and the risk that AVB will fold in the near future. Now is a great time to buy or a time to get out and cut my losses???????

im worried about the world markets too, but if anything can bounce, it's avb...