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ASX just the tip - Issue #1

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This weeks tip my latest buy Azure minerals, I own parcels bought at  1.2 and 1.3 cents. 
 

ASX just the tip

August 10 · Issue #1 · View online
ASX just the tip -Companies I am buying and my reasons for doing so.

This weeks tip my latest buy Azure minerals, I own parcels bought at  1.2 and 1.3 cents. 

To understand Azure minerals opportunity you have to go back to 2015, where we had them making an eye watering silver discovery, it was described by sprott at the time as one of the top 3 discoveries of 2015.
http://www.sprottglobal.com/thoughts/articles/who-is-making-the-few-significant-new-mineral-discoveries/
http://www.sprottglobal.com/thoughts/articles/who-is-making-the-few-significant-new-mineral-discoveries/
Looking at the other two companies mentioned in the article, MARL and CDV we will see MARL was taken over for around $250Million AUD for their 30% of hot maden and CDV share price has risen from under 10cents to 60cents+ since in that time.
The AZS share price despite retaining 35% of their discovery and having a fully drilled out high grade resource and a $15million dollar free carry from teck resources to earn back 65%, their share price sits right on the same price it did pre-discovery.

Here is a brief explanation of the share prices journey.
What makes me bullish on AZS, first thing drawing me to the company is the share price sitting on the lows and basing nicely, this is always an attractive buy signal to me.
We also have buying support from the MD that always go a long way to helping stabilize the share price if the man in charge is willing to dip into his pocket it’s never a bad sign.

What has me most bullish is recent conversation with the Tony riveria himself, he confirmed to me Azure is “close to making an announcement on a new flag ship acquisition” he also confirmed that next month teck will definitely between now and December spend $2 million on drilling to for fill their obligations under the J/V with azure minerals.

I see the situation for value creation playing out in one of three ways.
1. Azure acquires a new flag ship project before next month.
2. Teck begins exploration on Alacran next month.
3. Teck is too slow to for fill their commitments under the J/V alacran is returned to Azure 100% for no cost. 

Let me expand on those points.
1.Azure acquires a new flagship project why am I so bullish, the MD Tony riveria former Australian prospector of the year, his most famous discovery was th Cosmos nickel sulphide deposit sold to xstrata for $3billion, he is also responsible for the silver/gold discovery at alacran a property explored for many years by several majors who all missed it, they actually used the deposit which outcropped as a road never bothering to even sample it, this man knows geology whatever he buys it will be quality guaranteed.

2. Teck begins the first $2million of a $15million spend they have to December to complete the $2million spend, teck have announced they are drilling for additional gold/silver, the high sulphidation deposits on alacran have all been eroded to surface level where only the rock hard vuggy silica remains, so drilling is not deeper than 100m at the most, this mean alot of exploration alot of holes for $2million, I estimate around 90holes that is alot news flow from probably some of the hottest exploration ground you can find.
Also teck choose to claw back on this property they didn’t have to commit to the spend, they saw what Azure had and choose to come back, they like what they see, in my research I have encountered many signs that indicate additional mineralisation exist such as these vegetative anomalies which exist around priority drill targets on the western side of the property.
I could go on and on, but it’s not particularly relevant right now I might circle back for a more in depth look at the property once exploration begins.
3. Teck are going to struggle to Fulfill the commitments under the J/V. In my communication with Tony he was reluctant to give an opinion on if they would struggle, but he did say they would need to get three rigs out there and get cracking, he confirmed Azure will not be waiting on teck, we may end up best case a new flagship and Alacran.
With Alacran 100% owned Azure share price was consistently between 3.4 to 3.8 cents, with Alacran being a high grade from surface with a cheap capex heap leech development option, getting the project back would be a huge win for the company.

Any question about AZS please feel free to e-mail me at thunder54hc@gmail.com
Cheers Mark (T54)
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