Aztec Minerals AZT Cervantes 3

Aztec Minerals (AZT.V) has released another batch of drill results and we continue to like what we see there. All three holes reported in the most recent update contain mineralization which starts at surface which indicates the Cervantes strip ratio could be pretty close to zero. With 170 meters at 0.42 g/t gold, 122 meters at 0.6 g/t gold and 28 meters at 0.35 g/t gold (all starting at surface) the non-existing strip ratio makes up for the lower average grade.

According to CEO Wilkins, these first eight holes have tested a strike length of approximately 350-400 meters and looking at the map, we estimate the Cervantes oxide gold zone already contains a few dozen million tonnes (although you should definitely keep in mind this is a very preliminary estimate, and Aztec will obviously have to drill more holes to confirm the footprint). More drill results will be released in March after Aztec switched drill contractors, and we hope to see Joey Wilkins and his team expanding the current footprint towards the ‘magical’ 1 million ounce mark.

We are a bit surprised the market seems to be ignoring this story. With economic grades starting at surface, Aztec deserves better than its current C$4M enterprise value  (based on the C$2.7M cash in the bank).

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The author has a long position in Aztec Minerals. Please read the disclaimer




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