Ann: High Grade Primary Tin Confirmed at Azul Tin, page-3

re: Ann: High Grade Primary Tin Confirmed at ... Before this latest informative announcement I had no idea where Avenue was going or what it was doing. Scratching around for info.. trying to make deductions.

Now it is all back on track. If the new Directors had a hand in that, well that's terrific.

Seems to me these guys are quietly on track for building a real tin mine. TAD 1-6 results were described as "excellent".

Before they rush in and start digging, they are determining the extent of the deposit, looking for some useful finds to expand the resource. Finding out what they really have.

Look at AVB (much the same management crew) and copper, for example. C1 Cost around 1.10c./lb in concentrate form. Refined metal price is $3.00/lb.. roughly. Somewhere beween those figures is the profit margin of AVB. i.e. 3.00 - 1.10 = $1.90/lb.

Now AVB claim $50m profit for 12,000t of copper so :
US$50,000,000 / (120,000 x 2000) = $2.10/lb

So profit per lb is confirmed at say, somewhere around $2.00 very rough.

AVY : Here is where it gets hairy.... Antas North mine has a $70m major flotation plant, complete with all stages. Azul proposes "gravitational methods" primary flotation being not as effective generally for tin... except for the very fine stuff.

Consider :

http://imagesignal.commsec.com.au/docserver/01505144.pdf?fileid=01505144&datedir=20140331&edt=MjAxNC0wNC0wNyswODo1NToxMSsxMjArMCtjb21zZWMrcmVkaXJlY3QrL2ltYWdlc2lnbmFsL2Vycm9ycGFnZXMvUERGVGltZW91dC5odG1sKy9pbWFnZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw

Kasbah Resources DFS. AVY : 24kt - 60kt tin target. KAS : 64kt

KAS Underground mine looks like a rabbit warren. Very Expensive!!!

C3 cost $15k/t. AVY should halve that cost. Open pit, and in reasonably civilised Brazil, not the sands of Morocco with raiding Bedouins, or wild camels.

So AVY profit = $22,000 - $8,000 = $14,000/t Sn. = $7/lb. roughly

Also from KAS release : pg 3
With respect to the future direction of the tin market, Mr Peter Kettle of the International Tin Research Institute (ITRI) stated in a Mining Journal article on March 21, 2014 that:
“With (tin) stocks low and (the tin) market facing continuing structural supply deficits, it is highly likely that tin prices will move higher in the next three to four years, into the US$30,000 – US$35,000/t range or higher”.

OK.. according to Mr. Kettle, AVY profit = $35,000 - $8,000 = $27,000/t or $13.50/lb. in 3-4 years. Alright!!

Better than $2/lb for AVB's copper.

Just a small, efficient, low cost, modest-production, highly profitable mine.. divided up into only a small number of shares, tightly held. (if the stock is not diluted out of existence in the meantime).

SO... say 50,000t Sn x 2000lb x $13 = $1,300,000,000. Not bad for a company with MC $2m.

Boat on the Med is getting closer. Place drink orders in advance.... all aboard my 60ft motor yacht for the Greek Islands... I have named it "Avenue"... haha

Dreams..... (you can do anything with figures...)