Ann: Promontorio Resource Estimate Completed , page-8

AZS regularly released drill results when they were getting good intercepts of very high copper grades with good supporting Gold & Silver grades. These results were released when AZS were trying to convince shareholders to support the cap raising at 12.5 cents. Once the cap raising was finished suddenly no more drill results were released.


We now have an initial JORC resource that is way down on tonnage of what some observers were expecting. The Gold & Silver grades are also down considerably on what some were expecting.

The historical non JORC resource estimate was
1,023,000T @ 4% Cu, 2.4g/t Au, 63g/t Ag

The initial JORC resource is
502,000T @ 4.7%Cu, 2.1g/t Au, 99g/t AG

In their September presentation to the Latin American conference AZS stated that they are focusing their drilling on the historical resource area and expect to have a bigger and better JORC resource estimate than the historical resource. We now find the initial JORC is only 1/2 the tonnage of the historical estimate with grades slightly higher for Copper & Silver but less for Gold. It seems a pretty disappointing result given the companies presentation.

I assume that the more recent drill results which were not released must have been disappointing for the resource to be only 1/2 the size of the historical estimate when AZS were saying in September that it would be bigger. Makes we wonder about management if they release good results but don't release results that are not so good.

AZS will be out of cash shortly and with a resource way down on expectations where to from here?