Large selldown after metallurgy results were released. A few points
- Appears HLS/DMS was not a success and need to use floation
- Iron content head grade over 1%. Need something below that
- Recovery using floation is over 80% for 5.6% Li2O and Fe of 2%
Azure to look at further removal of Fe using Magnetic separation. And there was mention of Ore sorting -orange flag?? etc.
Results bit disappointing. But still early days..
Today some drill results also were announced. No trading halt and the intersects were good but not as amazing as the first discovery announcement
Area 3 looks promising, Area 2 however is small.
The results and metallurgy further prove that there are still challenges faced in increasing the supply of Lithium, even for large significant discoveries such as Andover.
Have also noticed in IQ Pro, a past director that retired 2 years ago and a few other large holders has sold about a few weeks ago. If only I picked that up last week!
Given the recent price action and events, I took the opp to exit on the price spike but will still keep watch.
Maybe stick to Base metals, or even better, Gold!
[not held]
Share purchase plan closed oversubscribed. My application got scaled back.
Lithium hype still alive and well no matter how much everyone hates that here.
[held]
I did not want to do another post on Lithium but could not help myself.
AZS doubled the share purchase plan and still closed oversubscribed as predicted. Non underwritten which makes it better as we don't have any sharks lurking in the register. Unfortunately I did not pay enough attention and only saw the note on Friday morning.
Not sure if I get any as I made the payment on Friday noon. If so, may use the funds for something else.
Lithium hype still alive at Azure. Either Azure has further to run or this raise is a signal we are at the top of the market.
Still have to admit an amazing run for a company not making any money.
[held]
Actually hate it when that happens. Been only a couple of months
Held
Azure Minerals released another drill result today sending shares up 22% from around 2.15 to 2.65
Should never be mean with my Strawman buy orders
Andover lithium seems to be getting bigger and bigger although it is happening at depth
Could see some serious economies of scale once they start mining. So I'm not surprised it went up this much today
Although for some of us here we are thinking that this is incredibly overvalued at a market cap of around 800m considering some around here have such a big bear case for commodities such as lithium espeically when no revenue is being generated yet!
Still thinking if I should take some off the table..
But there is still lots of drilling left. 100000m drilling campaign with 13,765m diamond done and 16,369m of RC done.
[held]
While I still have access, here is a map from Capital IQ Pro of neighbours if you are interested in nearology. Personally I try to avoid nearology plays but still keep them on a watchlist. Companies listed - ANX, SBR, MLS, RDN
As I understand, RDN acquired some tenements from Welcome Exploration Pty Ltd (Purple) so included them on the map
Red one in the centre is Azure's Andover tenements.
[held]
Cannacord price target $2.25 which also turns out to be the hidden line in my previous straw. A snippet of the report below
But after the latest results I think that could be downgraded. Scroll down for reasons why
The reason why the valuation modelling is mismatched with the latest drill result can be seen by the following diagram in the report:
The diagram assumes more spod in AP011 on the right continues up to near the surface but the latest result does not show it.
See my red circle below:
I think this is why it was sold off on Friday as everyone may be focusing on AND212. I think Cannacord may have to readjust their model On the flipside it does confirm there is something at depth. And there are still more targets untested.
In conclusion, a bit of risk for anyone that followed the Cannacord model.
[held]
Some broker upgrades including one from Bell Potter of 2.00.
Don't think we'll get a pullback in the near term. Price is still having a run.
Who said miining exploration was boring? I'm glad I pivoted back into mining exploration but wonder how long the lithium hype will last?
Also an interesting read on the Andover Lithium at Azure
[held]
After filtering out the hundreds of HC posts on AZS, I found a few posts that contained some estimates on the resource size extrapolated from the handful of drill results.
I can't go into the calculations as it appears one poster is using some software to get the numbers and is understandably not sharing the full working. But it looks like most agree the Andover lithium currrently stands at around 35-40mt for AP0011 and AP0012 for a strike length of around 800m and currently falling short of the 100mt estimate by Euroz. On the other hand the pictures of AA, BB and esp CC below look encouraging and there are results pending for 2 other zones AP0009 and AP0014
Diagram from ASX announcement 20 June 2023
Section AA
Section BB
Section CC
Also they haven't drilled from the top of AP0011 as they are possibly still waiting on heritage approval. So instead they are starting from the top of the outcrop where AP0012 is and directing the drill to where AP0011 is located.
A zoomed out view showing the Andover Nickel project (bottom left) and the peg outcrops and important infrastructure links including railway.
Project location which gives a better sense of surrounding town centres/ infrastructure (SP Capital IQ Pro). Explains why the share price is currently where it is other than the Lithium potential. So it's not just the rail but the fact that it is close to Karratha/Dampier. So prime real estate from a mining point of view should this be economic.
[held]