The speed at which AZS is drilling relative to other lithium explorers from a standing start is amazing. They have drilled close to 24,000m since early March (a little over 4 months) and it would have been a lot more had it not been for lack of heritage clearances. Tony has stated 40,000m will be drilled by end of August (I think by 3rd week in August) and at the current rate and 6 rigs will have drilled about 70,000m by end of October (< 7 months) and 100,000m by end of 2023 (<10 months) and if they add more rigs maybe up to 150,000m by end of CY 2023.
Just one example is PMT - took them over 12 months to drill 27,500m and about 18 months to drill 60,000.
AZS speed of drilling is much faster than PLS, LTR and KDR and countless others. To date, I have not come across a lithium explorer that has been drilling at a speed even close to AZS (but hey if there is happy to know about the stock).
IMO the drilling speed reflects:
A. Original Prospectively of the project (large area, over 700 peg outcrops with dimension from up to 1.6km by 200m and so many high rock chip grades); B. SQM shareholding bringing enough cash to go full bore drilling from the start (reflecting point A); C. Great results to date which has already increased drilling with the original 40,000m to 100,000m and now they are looking at brining on more rigs; D. Clear expectations on AZS for a very big resource even before drilling started and since drilling the expectations appear to have significantly increased.
Just because AZS is drilling 100,000m and maybe up to 150,000m before a maiden MRE does not mean they think that it will deliver just 100mt as it may deliver more than double that if not more. Every explorer has a different approach to drilling and when they declare a maiden MRE.
PS it will be interesting to see PMT maiden MRE with consensus of brokers being something like about 125mt @ 1.2%.
AZS Price at posting:
$1.63 Sentiment: Buy Disclosure: Held
