Shares of Azteca Gold Corp. (TSX: V.AZG, Stock Forum) climbed more than 16% to 43 cents early Tuesday afternoon, as the company provided an update on exploration activities at the Two Mile Project in Idaho after Monday’s market close.
The company says hole DDH-006 is currently at a depth of 11,173 feet, and says it received preliminary assays over the weekend, which “may substantiate the extent of the calcic carbonates encountered.”
“We are evaluating these assays now, and will release the results in the next day or two. Our goal was to locate the primary source of the gangue minerals of the Silver Valley, which various USGS publications describe as ankerite (calcic iron/magnesium carbonates) and siderite (iron carbonates), in the belief that silver-lead-zinc massive sulfides, including significant copper and gold, may be found within them," says Matthew Russell, president of Azteca Gold.
However the company notes that it has suffered a mechanical failure that has temporarily halted drilling progress, as the upper reamer, located approximately 12 feet behind the drill bit, has failed.
"We are now attempting to wedge around this spot, and expect to resume progress towards our target depth of 11,500 FT within the next two weeks from a higher elevation of 9900 FT," says Russell.
The company also announced Monday afternoon that it has closed its current financing, with a total of $836,700 or 2,091,750 units sold, at 40 cents per unit. Funds from the private placement will be used for drilling and assaying expenses at the company's 50% owned Two Mile Project as well as for general corporate purposes, says Azteca.
The Azteca Gold Bullboard was one of the most posted boards on Stockhouse Monday afternoon and into Tuesday, with posters weighing in on the news, including Bullionbuyer, who said:
…I've been following Azteca Gold since January and bought in at 15 cents. I'm a lab manager and I've traded stocks for over 20 years. I've seen very few speculative opportunities such as this come along. Yes it's speculative because it hasn't come to fruition yet. Assays are key!! ....and before any buyout happens, the minerals will need to be "proven up" first. So these people thinking we are going to get bought out any day for a hundred dollars a share are in a dream world. The share price could very well go over a buck or two in the very near term should positive assays be reported though[sic]…
Libertyg also noted:
Hole 006 TD to 11,500' will now take a minimum of 6-8 weeks to achieve as they re-drill. As we know these things happen but they were able to poke into this last zone enough to gain a glimpse of what is waiting for them via assay. The fact they are willing to pull back up to 9900, and drill back down to 11,500 illustrates something well worth the trouble and expense to investigate. If gold somehow manages to fit into the picture in addition to high grade silver, not to mention copper, they would achieve well above and beyond any prior hopes or expectations for those who bought in due to hole 005 zinc and lead grades.
