Stay alert to signs of value amid gold sector sell-off Azure...

Stay alert to signs of value amid gold sector sell-off

Azure Minerals
Talking about creating a bit of a buzz, Azure Minerals (AZS) has been doing just that with its Alacran project in northern Mexico where its Mesa de Plata prospect is showing the potential to become a big silver discovery — potentially more than 150 million ounces by some estimates.
Azure was in a trading halt yesterday (last sale 3.9c) while it put the finishing touches to a $5m placement, so it can get stuck into a drilling program to confirm that as far as silver discoveries go, Mesa de Plata is one of the more interesting in recent times.
The drilling could see a maiden mineral resource released early in the new year. North Americans are crazy for sizeable silver resources down Mexico way, as a number of big ticket takeovers of silver resource owners has shown in recent years.
So interesting times ahead for Azure, previously mentioned here on the strength of its Promontorio copper-gold exploration with Rio Tinto to the southeast of Alacran.
Rio can earn 80 per cent by spending $US45m ($63m) on exploration/development and has spent $US2m to date. It is looking for world-scale copper-gold porphyry deposits.
Azure was interesting enough on that alone, but the upside potential of Alacran gives its story a handy silver lining. Ahead of the trading halt, Patersons initiated coverage of the stock with a speculative buy’ recommendation, and a 6c-7c target price range.