Yes very good drill results.But do you note that the release...

Yes very good drill results.

But do you note that the release specifically states that the extra resources will be used to increase mine life?

- as opposed to increasing the size of the operation?

this is the problem of doing the Scoping Study to soon, before exploration has fully scoped the size of the deposit.

AZS appear to have locked in the process rate before they know the true size of the orebody.This is an Ok approach, but not when you only have a modest sized operation that the market will struggle to acknowledge the value of.

When you add extra mine life to an existing 5 year operation, the added Project NPV from the cashflow from yr 6 onwards is reduced because of the higher effect of discounting late in the mine life.  It is always best to maximise the early cash flows of a project.

Much more NPV is added by increasing the size of the operation.

Of course, good results are always a positive and the lack of market recognition is a bit surprising (but then again it isn't)

However I'm not that impressed with the development approach - why the heck didn't they drill the Central Zone before now?

Maybe, just maybe they will revise the size of the operation before the start the Feasibility Study. But I think not.

Gosouth