Avanco Resources Ltd ("AVB")- very high grade cu

[steve fleming]

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.

[STRAT]

Hi Steve,
Been waiting for an entry will low offers in both the options and heads ever since the last spike.

As you say, seems to have found support where it is

Still the DOW is lookin a little shakey over the last week so I might have a chance yet

[steve fleming]

Hi Steve,
Been waiting for an entry will low offers in both the options and heads ever since the last spike.

As you say, seems to have found support where it is

Stlii the DOW is lookin a little shakey over the last week so I might have a chance yet

AVB are now targetting a large nickel sulphide resource, to go with its very high grade copper project that it is developing.

As evidenced by today's trading there are still a few sellers around ( presumably ex-placement), however it look likes it will pop very soon.

Nice to see AVBOB up 40% today - a sign of confidence for the heads.

[Huang Chung]

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.

Hi Steve

Another interesting find.

That high grade zone at the Rio Verde project has eye popping grades, but is oh so small. The rest of the project seems to have the very low grades that are more typical of a porphry system, but miniscule tonnage by comparison.

I would have been far happier with a project around this size having a reasonably consistent grade somewhere in the middle...say 5% Cu.

Still, interesting, and you never know what other high grade zones they might uncover.

Good luck.

[steve fleming]

Hi Steve

Another interesting find.

That high grade zone at the Rio Verde project has eye popping grades, but is oh so small. The rest of the project seems to have the very low grades that are more typical of a porphry system, but miniscule tonnage by comparison.

I would have been far happier with a project around this size having a reasonably consistent grade somewhere in the middle...say 5% Cu.

Still, interesting, and you never know what other high grade zones they might uncover.

Good luck.

Good points HC, thanks for your thoughts.

Certainly, more drilling is required to expand the resource and AVB have only taken one drilling campaign since IPO wich resulted in the current JORC...however despite the small size of the HGZ, the grades are such that AVB are proceeding to move to development.

The idea is to mine the HGZ first then move on to the low grade ore once the size of the low grade resource is (hopefully) sufficiently expanded.

The upside is in the 5 of the 6 copper target zones not yet drilled, as well as the nickel target, as announced yesterday, which looks promising as well.

[drillfix]

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.

Hi Steve, yeah I played victim to that P&D a while back and got out with only a small loss thankfully.

At times its like this stock is controlled though and unpredictable, kind of like many stocks when we think about it but there are some pure pro's in this who know how to fish well.

Wouldn't mind another go at 1.8 if it gets back there though~!

[evilroyrule]

AVB are now targetting a large nickel sulphide resource, to go with its very high grade copper project that it is developing.

As evidenced by today's trading there are still a few sellers around ( presumably ex-placement), however it look likes it will pop very soon.

Nice to see AVBOB up 40% today - a sign of confidence for the heads.

steve you are a legend. i have never actually got on one of your picks but for the last month or more now they have all fired with alarming regularity.

[evilroyrule]

another conversation with myself but will be interesting to see what happens if can drive through the 15 SP today/tomorrow. been pretty determined buying all day

[STRAT]

another conversation with myself but will be interesting to see what happens if can drive through the 15 SP today/tomorrow. been pretty determined buying all day

We cant have you talkin to yourself. People will think you are nuts
Have you bought some of these Roy?

Looks like a nice close for the heads. I wonder if the 1.5mill options @ 1.6 will get taken or pulled?

[steve fleming]

steve you are a legend. i have never actually got on one of your picks but for the last month or more now they have all fired with alarming regularity.

Cheers Roy....hope you got on AVB today!

I’ve been lucky in that junior explorers generally have experienced a fantastic last couple of months.

It’s almost back to the good old 2005/2006 resource boom days when explorers would double or tripple on a rock chip result.

However this time round i am locking in profits regularly and maintaining reasonable levels of cash.