Azimut Exploration Inc V.AZM

Paradigm - Good morning comments - Top picks by tier

[Thunderstruck20]

October 13, 2021
the following companies are in news letter: YRI, THX, FNV, ME, AZM and TML.

Explorer – Azimut Exploration (AZM-V):

• Azimut is our top pick in the gold explorers
• Again, we have some fresh research with our initiation report published on October 4^th
• The Elmer project, and specifically the Patwon zone is the majority of the value and focus right now. We estimate from the drilling to-date, that there is likely already 1Moz of gold defined. The next phase of drilling will be starting imminently (if it hasn’t already) and the plans are to grid drill Patwon down to 800m, and if the rate of discovery, in terms of ounces-per-vertical-metre continue as they have in the first 400m, we see the potential for 2Moz to be defined.
• Patwon is only a small part of the larger Elmer project which captures 35km of strike along a prospective belt of geology and an 8x3km “priority corridor” that has had many documented gold occurrences. AZM has already drilled 10 regional targets, some of which look as good or better than Patwon did before it was drilled. A discovery on even one of those would open up a whole new phase of growth upside.
• Azimut also has a huge portfolio of properties, as they have historically been a prospect-generator company. Many of these are under joint venture with very capable jv partners, and the partners are spending the money to advance the projects. Any success and AZM shares in the value creation, at no expense to AZM shareholders.
• Azimut’s share price took a hit in late-September; it has recovered a little bit but is still down -33% over the past month versus -8% median exploration company performance
• We find the share price drop irrational. It is the lack of news, not any bad news.
• The assay results continue to be painfully slow. But we know there are going to be good holes. Visually they looked good, they had v.g. (visible gold). Sure, some may come back disappointing that’s the nature of exploration, but there would have to be a LOT of dud results before the thesis would start to change here. Elmer is shaping up to be one of the best discoveries in Canada.
• At C$1.50, that is the price it reached after the initial discovery hole in January 2020. The initial discovery was exciting, for sure, but the close-to-2 years of work since then have shown this is a deposit, not just a discovery. This has real potential to be developed into a mine. Getting it at the discovery hole price is an opportunity clients shouldn’t pass up.
• Spec Buy and $3.25 target on Azimut