AZL General Discussion, page-5468

Sure, I’m probably the closest to “on the ground” since I was born and raised in the American West and spent some time in AZ in recent years. The economy of my small hometown in CO still depends on a large aquifer to sustain its irrigated crops.

As I previously posted when these concerns were raised before, Big Sandy is located atop an existing aquifer that the BLM has rights to since they’re allowing use of their existing water well in the Environmental Assessment that’s currently under review.

If your concerns about water rights truly holding up BLM approval for this 3rd round of drilling, then I would expect AZL management to speak directly to this (which they haven’t). Others such as Cypress Development with their sedimentary lithium project in Nevada (Clayton Valley) include water rights in their investor presentation since they had to buy them from a broker for $2 mil:

https://cypressdevelopmentcorp.com/news/2021/cypress-development-completes-purchase-of-permit-for-water-rights-in-clayton-valley-nevada/

My understanding of the process is that securing water rights comes after the exploratory drilling and scoping studies are complete because until then the water needs cannot be quantified. Phase 3 drilling will only consume 145,000 gal water one time per EA, compared to Clayton Valley’s consumption of 1,770 acre-ft of groundwater per year for the life of the mine.

There’s no new information that warrants giving into the fear that’s creeping into markets so far this year.

I’ve already made peace with the risk/reward of going the distance on this one. I can’t miss out on the potential upside if I hold my shares. And my low initial cost will most likely be gone forever if I sell now. Everyone has to do what they have peace about.

Hopefully we can all chill out and enjoy what’s left of the weekend before we’re glued to the markets again Monday.

Cheers all