Azarga Metals Corp V.AZR

Resource upgrade in-progress.

[Sharegar777]

Another important point the market is missing.

 Current resource is 1.2 Billion Lb Cu equiv (or 182 M Oz Silver equiv).
From a strike length of 3.4Km.
2019/20 drilling is from further 3.1Km of strike length.

 The widths are better, but the grades of Cu and Ag are very slightly lower. However, it is fair to say that the overall tonnage per Km will be very similar. (refer to page 15 of the company presentation from October 2020).

Therefore, the new resource could be awfully close to double of what we have already?
That is 6.5km (new strike length) divided by 3.4km (original strike length) times the existing resource.

Giving a new Copper equivalent of 2.3 Billion Lb of Copper. (Assuming the ratio for Cu/Ag price is as before).

 Cu price currently $4.13 Lb (US) thus giving us 9.5 Billion USD metals in the ground.

Yes, they are inferred resources and there is a lot of work ahead, but this potential is amazing for a company still valued under 10 million CAD.

No wonder the insiders/directors have so many shares in their possession (35%).

 This resource would be open pit and early studies indicated an NPV of $204 Million.
Copper and Silver have both increased by greater than 25% since the NPV calculation and we are also going to have a substantial resource increase as I describe above.

 If they were to publish a new NPV, I would expect something north of $500m Million.

  GLA Sharegar.

[RHertig]

I assumed the private placement would cover this years drilling. They state it is for the new PEA. I hope that drives the SP price high enough for the warrant exercise and less dilution on the next rase. We are already giving 50% to Baker Steel. I hope with the huge rise in copper and silver this is our year to rerate.

[Sharegar777]

  RHertig RHertig,    Yes, we will have to raise money at some point to do more drilling. It is looking like we will be able to do it at a decent SP and avoid too much dilution.  Hopefully we can get a further run up before the money is raised.  Could happen in favourable circumstances. After all

[Sharegar777]

Also, as you mention. If the Warrants are exercised that would be an excellent outcome.    Gets rid of a potential overhang and would make the company even more attractive to new investors. Money spent on drilling will add real value by upgrading of our known resource categories and it could be interesting if we have some new discoveries thrown into the mix.

[RHertig]

I thought we would have a rise with todays news. I am not sure the market even reads our news releases. 

[Sharegar777]

RHertig,     Yeah, I think you are right. Very much under the radar which is surprising. They have been on Proactive  and some other video platforms in the not too distant past.  I liked the update today. There is scope for more dicsoveries later in the year and potentially better economics if heap leaching works.  I think we have got a resource upgrade and higher

[RHertig]

I found out about this from a small fund manager. I have know him for 4 or 5 years and message each other about ideas. His thoughts last year were that this was the most under valued copper silver company in the world. The deal with Baker steel cuts a little of that value. It does however give us access to capital. I love the idea that they want to start a small scale operation. Funds flow to

[Sharegar777]

 RHertig,  It is always handy to get tips from other people. Off course it is equally important to do your own research after such advice.     I am not surprised you invested. The description he gave seems to be consistent about what I think about this company and its obvious potential.     Great opportunities ahead. Drilling will add great value IMO.   I do my

[RHertig]

You are 100% right about doing your own DD. I have to shake my head at people who get mad at someone else when their investment does bad. It does help when you have others to share ideas with. I have found problems others have missed in their research and they in mine. There are actually some who know what they are talking about on here and on seeking Alpha. Also some shadey people mixed in. How

[Sharegar777]

The new Ceo seems to have a wide range of skills that Azarga would find useful going forward. His 30 years experience should help.  He is NED for two other companies that have not really set the heather on fire. So I would conclude that he has an opportunity to make a name for himself at Azarga but it is hard to tell how good he really is.  I also found an interview when he was at Focus

[money2017]

I have invested with Azarga for a few years now. Every few years they seem to get a new CEO. I invested because they seemed to have interesting busines proposition and they seemed to have an experienced CEO in Dusty Nicol. Well a year after that he was no longer with Azarga, replaced by someone else and now this is the 3rd CEO change. NOt very confidence inspiring I now count my initial investment

[Sharegar777]

 Although the Jury may be out on the recent management change (I am neutral), it does not really change my opinion on the Stock.     I am here because of the potential in the ground. Once they complete the resource upgrade which could possibly double our current resource. They will probably have more targets and I think they would want to do some closer spaced drilling to give more

[RHertig]

The pea might give us a nice bounce. I might have taken some out at that point. However I am looking forward to the drill campaign on the east side of the river. A couple of smoking drill holes in a new area might be the first leg of a game change. If the channel samples are any indication it might be better than the west where we have all of our current resources.