assays out !!, page-19

My overall view is that it is now very easy to see Calibre being a very large scale open pit mine. From less than a handful of holes AZY has delineated a heck of a lot of Au/Cu and it does not take much vision to see that with a sustained drill campaign this deposit will continue to grow much larger and attract the economies of scale necessary to develop a profitable mining project.

I agree with the previous poster that this is already a multi million oz deposit and will grow to be much larger. From my experience the reported grades are strong enough if a process rate of say 10to 15 mtpa Mtpa or larger is supported by the resource. This is no different to Cadia, etc.

So from a medium term perspective AZY's fortunes still look very promising.

However, in the short term:

1. I repeat my previous posts that the management have botched the funding path and have failed to use the recent share price strength/options expiry to conduct a large raising - which would support a much bigger follow-up drill pogram with multiple rigs. AZY is now staring at a large heavily discounted placement which will continue to weigh on the stock until it is done.

2. I find it hard to see the grades improving materially. I think the best trading status to take is that the drill holes to date are probably showing the typical tenor of the deposit.

So take from that what you may.... the market is saying the same. Yes it all looks good, but what about the money to keep growing the story?

It is best to raise the cash before the market expects it- before it becomes a weight on the share price. AZY have not done this.

So in the meantime I will sit on my hands and look for other stocks to put my hot money into.

Though for the patient and those willing to support a developing resource story, AZY remains a good option (but that is not how I play the game).

And this story has large scale to it- the majors will be watching on, and possibly already registering interest.


cheers
gosouth