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01/06/18
13:42
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Originally posted by Dazedandconfused
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Hi aposteriori
fwiw... the way I interpreted the results for S.A. is... it is narrow and steeply dipping which means underground mining to exploit it. It requires AZS to now find high grade continuations [and probably also repetitions] ... if they fail then this will never be mined.
The ann states the deposit "plunges at a shallow angle" but the 3D modelling clearly shows it is about 45° and is [so far] only about 50 metres in diameter. The same modelling shows pockets of very high grade but it is contained in low grade surrounding rock [mostly 1.5 g/t] ... so any mining to be commercial will likely have to replicate the artisan approach of following rich veins. The extra unknown concerning the extent of artisan mining is another risk factor.
A possible porphyry might radically alter things but then there is the matter that the tenement is small and isolated... to exploit a commercial porphyry it would require much greater control of the land.
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Apart from the fact that it's possible for Sara Alicia to be extended into surrounding areas, (re never be mined ) this is a good summary of why Oposura is AZS's key project.
There is much more certainty about the economics there. Which should drive a substantial rerate later this month.