Phoenix, AZ (PRWEB) September 6, 2005
As Gold has continued to rise sharply in recent days on inflation fears, following the Gulf regional catastrophe, Gold related issues have soared, with Azco Mining Inc scoring amongst the largest gains in the entire Gold sector, as realization of its immense assets were apparently being re-appraised by investors, especially with Gold moving significantly higher towards multi-year highs itself.
As part of its field and in-house evaluation, the company has concluded that at today's gold price the Ortiz project could support development of one or more very profitable new gold mines and intends shortly to commission an independent engineering review and Azco Management has stated that it is confident that this independent study, will support these positive conclusions. The company holds mineral rights to a huge area covering 90 square miles, and according to Azco Management, the geology offers superb potential for additional discovery of other major gold deposits. With these metals now having deep world markets and bright demand outlooks, Gold is attracting great interest in today's mining markets.
The acquisition of the Ortiz Gold property represents the first realization of Azco's new strategic agenda. In addition, the company has reported it has been successful in identifying other attractive precious metals properties containing drilled resources and has begun active negotiations on two of those properties.
The Ortiz gold project contains two million ounces of gold in several deposits that other companies discovered and drilled in the 1970's and 1980's at a cost of $40 million. These deposits have yet to be mined, although a major gold company did operate another open cut mine on the property in the 1980's, producing some 350,000 ounces of Gold. Two of the undeveloped deposits contain one million ounces of gold and were the subject of extensive drilling, metallurgical testing and feasibility studies.
In 1990, a pre-feasibility study carried out by the former LAC - Pegasus Joint Venture concluded that economics would be positive for open-pit, mining of the Carache Canyon and Lucas Canyon deposits at gold prices over $325 per ounce, assuming a discount rate of 10%. Production was projected to average 83,500 ounces of gold and 103,444 ounces of silver annually over a nine-year period. Operating costs for one mining scenario averaged $222 dollars per ounce of gold produced, although the study concluded that the numbers quoted were conservative and that significant improvements in capital and operating costs would be possible. The study also considered the project to have excellent upside potential to increase both the minable ore reserves and grades.
Azco Mining Inc CEO Dr. W Pierce Carson has stated that in addition to the potential for open pit mining, the Company also would be looking carefully at the possibility of underground mining. He noted that the large amount of drilling data for Carache Canyon showed areas of high-grade gold intersections that had not been evaluated for their underground mining potential. He also noted that metallurgical studies of Carache Canyon ore indicated that, after grinding, a gold recovery of 90% plus could be achieved in a gravity circuit. If additional work can define discretely minable high-grade gold ore bodies, then the approach of underground mining and gravity recovery would offer significant advantages and would facilitate the project moving more quickly towards production. Such an underground operation would involve minimal surface disturbance, clean processing of ore and utilization of relatively small amounts of water.
Azco Mining Inc also owns the Black Canyon mica project. Black Canyon is a new mine development already permitted and largely completed. The mine is planned to produce mica for the growing cosmetic, plastics and pigment industries, and by-product feldspathic sand for the expanding Phoenix construction market. Since 1999 the company has spent over $15 million on resource assessment and construction of production facilities. In 2002 the mine operated for several months on a limited basis and was successful in demonstrating it could produce high quality products. However, the project requires additional capital to reach sustained profitable production. Once this capital is obtained, we believe initial production could begin within four months and that positive cash flow could be achieved within twelve months. At full production, the project's economics are anticipated to be very attractive. The company controls a very large mica resource at Black Canyon, sufficient to support the mining operation for many years.
Re-iterating Azco's goal to build a substantial mining company driven by cash flow and possessing a portfolio of quality exploration and development projects for future growth, Dr. Pierce Carson CEO of Azco Mining, in a recent interview added, "Out of the one million ounce deposit alone, we can expect over $100 million as a bottom line profit number."
Industry titans Morningstar and Barchart.com generated an unusually large number of alerts and very positive technical analysis based on 13 key technical indicators earlier this week which reflected their opinion of a 100% BUY rating for shares of AZMN. A copy of this analysis is available at http://cfrn.net.
CT's Previously Highlighted Issues soar along with Azco Mining Inc
Other issues mentioned in previous press releases, Imperial Industries Inc (Nasdaq: IPII - News) highlighted at $8 and projected to $24 and $32, recently traded at $30 per share, up almost the 400% gains we were projecting for this issue. Tradestation Group Inc (Nasdaq: TRAD - News), has risen more than 50% and met initial projections of $9.
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The CT research team continues to follow the ongoing situation at CMKM Diamonds Inc (CMKX).
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