AVB 0.00% 16.5¢ avanco resources limited

the nickel

  1. 83 Posts.

    Before I push off, I thought I would explain this Nickel Ground further.

    Originally Avanco picked the ground up for its copper potential. There was little consideration for its Nickel Sulphide potential as the Carajas is not known for hosting Nickel Sulphines although a company called Majestic claims to have drilled Nickel Sulphides but has never released any assays.

    It was a reliable geological source who in Brazil who reckoned that he had seen evidence from a location very close to Avanco's ground a few years back that got the Avanco boys wondering.

    They noticed that Vale who explored for copper and drilled a hole had not assayed for Nickel Sulphides.

    But before they could justify drilling a hole they needed some real surface evidence. They needed to find a Nickel Gossan and the geo who had done the wide spaced soil samples hadn't come accross any.

    So they sent him back out to specifically look for one and as we know, he found one hidden in some scrub.

    Their entire view of this 5km x 1.5km geological structure was about to change (as was the gelogical professions view of Nickel Sulphides in the Carajas.

    They also detarmed that the geological structure was very similar to other known Nickel Sulphide hosting structures and in particular, Mirabela's giant Brazillian Nickel Sulphure discovery.

    All of this plus the soil samples justified drilling a hole to see if the structure did indeed host Nickel Sulphides but lacking any better target to drill they twinned the old Vale Copper Hole.

    The result may not have excited the day traders who smashed the share price but it changed the Brazillian geological world. They got a whopping 130M intercept but at a very low grade but the result was conclusive, this big structure did indeed host Nickel Sulphides.

    I note that Mirabella also got similar early results on their ground (before it was a IPO)

    The next thing to do is to run ground magnetics (IP and Gravity) accross the entire structure (just completed) and do close space soil samples above the hot spots on the survey (must be close to being finished as well) to determine some high quality targets to drill.

    The first and only hole had a drill core which contained very fine Nickel Sulphide grains. This tells them that it was not where they need to be. The high grade material is large in crystaline structure (grain) and in Nickel Suphide deposits these tend to accumulate at low points in the structure (back when it was magma). This is what they are next hoping to find.

    You have at least got to love the smoking gun?
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