Morgan SummaryAzteca set out a new model approach that was going after those carbonates that they felt were there with a strong geologic reason for the amassing of sulfides against a chemical buffering zone of carbonates and that's what they demonstrated. They hit what they said they were going to hit.
Morgan - Happy now you did hit carbonate at 11,000 ft, does that mean sulfide ore is below that zone ?
Matt - Have to look at fact they hit some miscellaneous intercepts of sulfides. If look at the depths of the ( the word sounded like curad, means nothing to me) what does this represent and those can indicate sulfides associated with those carbonates but the main carbonate is a very consistent mass. These carbonates are very consistent and wide
What does this mean ? A very wide buffering zone. We are extremely optimistic now have the ability to use geophysics that can see hundreds of feet from the hole with gravity and we have an incredible intercept in 5a that is only between 100 to 200 ft away from 5b. Our geophyics should see those sulfides, so we are more then optimistic. Its a matter of time to get geophyics done and then drill through the carbonates.
Morgan - Premise 5a was not one of your run of the mill results.
Matt - Carbonates were the model, have shown there were carbonates in very close proximity of very significant width and certainly in 6b in very significant concentration upwards of 26% to 27% of CO3 ion. We also showed that there are massive sulfides in close proximity to them.
The foundation for their extreme optimism now has more to do with how substantial these carbonates are and that they are there and that there is really high grade massive sulfides in terms of what they found in 5a in very close proximity to them. We have done this in a short time to have hit on the first hole the massive sulfide intercept is tremendous and then to realize these carbonates now. Russell thinks the reason for the optimism is well founded in the geology there.
Jon said when talking about a carbon related model not saying theirs is like them but rather that the existence of those types of models gives them encouragement that their system may work the same way.
Matt added that carbonate buffering model is spread throughout the world and are more prevalent in age at around 300 million years old. Two Mile is unique in that it is white carbonate dating somewhere between 1.5 to 1.8 billion years ago in the pre cambrian era that it was formed pre critter life with shells, more bacteria assisted limestone carbonate. It is therefore not necessarily going to be as high grade limestone because they are laid down more chemically then mechanically with the shells of slimy critters. The other aspect to look at geologically those limestones more recent with critter shells associated with the limestone deposit tend to be more penetrable by solution like the Carlin Trend and the ones in the Mississippi basin types.
Two Mile is different it is more chemical based, may not get the tremendous ingress of solution into them, they may literally be sitting under the carbonate. Have a lot of work to do to show that but their geophysical work to show that could be very rapid here. That's the beauty of it for investors and then to continue through the carbonates right after the geophyics. They are in close proximity in time and space to their goal and this is a unique thing for a junior to see a very promising end goal or intermediate large goal this close at hand.
Matt stated their optimism is based on real geology and using some innovative approaches to drilling and exploration that is involved here and why they can get to those depths. Their approach is not always accepted, many don't like how he deals with geology. It is more to do with chemistry because the rocks are so altered down there that they don't look like the typical rocks on the surface. Azteca will be able to describe this in more detail when professionals soon join their academic panel this fall. Will convey more of those details to further demonstrate they are following real geology and its solid geology, he said this was an important point he wanted to convey to shareholders.
Jon added that there was a lot of expectations built up and shareholders are feeling let down. He said the fact they found the carbon unit and its this thick deep layer under such a rich system as the Silver Valley for shareholders to step back and think about it. See how credible that is and what it might indicate as to what they may find. They still haven't found the mother ship but they are very encouraged. When you are at the cutting edge in terms of your theories and your approaches things take time to develop.