Avanco Resources Ltd ("AVB")- very high grade cu
AVB is starting to look interesting again.
A JORC resource of 84,400t of Cu worth approx US$500 million.....a high grade zone at an average at over 11% copper (which is probably the equal, if not better average grades than SFR)......potential production as part of a JV in 2010....
Current resource is still open at depth/width and only 1 of 6 priority targets has been drilled to date.
Yet AVB has a market cap of approx $6m – approximately 1% of the value of its current resource.
A couple of months ago, it was disgracefully pumped to 3c and dumped.... presumably to allow those who had picked up shares at the 1c placement to exit....the register should be tighter now and AVB is likely to hold its gains this time.
On the downside, 1.8c has proved solid support over the last month.
On the upside, a medium term target would be a market cap of $20m or 6c.... though the directors may want to get a cap raising away at 3c to 4c.