Ann: High Grade Results Continue at Oposura, page-31

Hi tangs

Thanks for the clarification.

I did look at HRR ... imo ... that's never going to be a high profit operation. Also the geology they a working is very different to AZS' little plot of land. On the capex... about a year ago I talked with AZS management about what they might do with Alacran [before Teck exercised their back-in] and they had costed the capex at around $35M.... so that might be a sensible number for Mexico.

Oposura is permitted for 125t/day [from memory] ...it's my opinion only but I have always thought AZS would have to get a permit to process more than that to make this worthwhile. I agree with you in general that Oposura is a minor project ... but, if they can demonstrate the JORC corresponds to the estimate of 2.5/3Mt for the MRE and depending how much high grade/low strip is present I think it might be profitable enough. Teck could be scratching around Alacran for another 4 years ... much better that AZS develop an income stream in the mean time.