Home > Oil Gas News > Opportunity Gap Re Opens Between Azco Mining and US Gold
Opportunity Gap Re-Opens Between Azco Mining and US Gold
USGL appears to be leading AZMN's move higher by a few weeks, but Gold's recent surge to new highs could accelerate AZMN's catch-up.
Phoenix, AZ (PRWEB) September 19 2005 -- As Gold moved up through 17 year highs last week, Gold issues exploded higher, including US Gold recently highlighted here and as well as, at $0.97 cents on our affiliated MODAR Alert Service. See below.
Azco Mining Inc., AZMN, also recently highlighted for its potential to follow US Gold - USGL higher, has since soared by as much as 500% off its 2005 lows, also quite rapidly and dramatically, causing it to correct back about 30%, just as US Gold did, before USGL resumed its very strong rise to $2.47 and new multi-year highs. With USGL appearing to be a few weeks ahead of AZMN since their respective lift-offs, it seems reasonable to expect AZMN to break out to new multi-year highs soon in pursuit of USGL.
Since an unprecedentedly large and rapidly growing list of quality analysts including Wall Street's top-ranked chart strategist while at Citigroup Inc and noted analyst Louise Yamada are calling for substantially higher prices in Gold and even new all time record highs soon, Gold stocks en masse began moving sharply higher over recent days and weeks. What most investors may not yet be fully prepared for is what could happen to Gold equities if the price of Gold rises to $1,000 plus. At the current price of Gold, many Gold issues have production costs around $200 per ounce. So that every ounce they produce has been getting about $200 ~ $250 profit per ounce, in other words a 50 ~ 50 split roughly. But at $1,000 per ounce, that net profit multiplies four fold and so, by definition, Gold equities could also rise by as much as 400% ~ 500% and that's without factoring in the potential premiums that many issues could command for their reserves or potential reserves, especially those issues with significant upside exploration prospects.
This is a potentially monumental development in the making and cannot be underestimated, given the sudden extreme bullishness that has begun to develop among some of the most respected analysts in the Gold World, calling for $1,000 Gold and $50 Silver and may also help to explain why Gold issues were so amazingly strong last week, especially such major issues as Newmont Mining NEM, GoldCorp GG, Anglo Gold AU, Barrick Gold Corp ABX as Great Northern Iron Ore GNI and Phelps Dodge PD led base metals higher. In fact, Gold issues across the board were awesomely strong: Gammon Lake Resources GRS stood out near all time highs along with Compania de Minas Buena BVN and other foreign issues. The entire Gold Equities sector acted the most bullish in quite a while. Since the Gold equities tend to lead Gold, this is potentially an incredibly bullish development. The elongated bases on some of these issues are highly significant and appear to project extremely sharply higher prices ahead, just as oil issues moved sharply higher all year.
Louise Yamada recently made headlines calling for Gold to rise as high as $600, $700 and even $1000. That is an exceedingly bullish forecast coming from such a highly respected and conservatively viewed analyst as Ms Yamada, who is credited with predicting Oil would reach $67 per barrel, long before most. Oil actually soared to an all time record high of $70..85 on August 30, 2005. With Gold demand rising 14% last month and new calls for Silver to hit $50 again, the growing tightness in supplies for both the Gold and Silver and could usher in a major new 30 year bull move in metals.
USGL vs AZMN
While US Gold USGL's only asset is its Tonkin Springs property, a 37 Square Mile area, estimated to contain a 1.4 Million ounce inferred gold resource. (An inferred resource is a mineral find based on a few drill holes), Azco Mining Inc AZMN, in contrast, owns a 90 Square Mile area comprising 57,392 acres that contains a 2 Million ounce proven Gold resource, delineated by some 386,000 feet of drilling and 1,500 drill holes, that was conducted at a cost of $40 Million when Gold was at previously higher levels.
Of the 2 Million ounces contained in the Ortiz Gold fields, 1.03 Million ounces lies in two open pit deposits known as the Carache and Lucas Canyons, that can be relatively easily mined and according to previous feasibility studies, 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 overall 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 and therefore, 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.
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 a felthspathic sand bi-product for the expanding Phoenix construction market. 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 mining operations for many years.
Dr. W. Pierce Carson, Azco's CEO also recently commented: The acquisition of the Ortiz Gold property represents the first realization of Azco's new strategic agenda. In addition, he reported the company has been successful in identifying other attractive precious metals properties containing drilled resources and has begun active negotiations on two of those properties, he also added:
"Out of the one million ounce deposit alone, we can expect over $100 million as a bottom line profit number."
About Azco Mining Inc. AZMN
Azco Mining Inc. is a U.S.- based mining and exploration enterprise with an emphasis on gold, copper and industrial minerals. Azco owns mineral lease rights to 90 square miles at the Ortiz gold property in New Mexico, where previous exploration has identified resources containing two million ounces of gold. Azco also owns and operates the Black Canyon mica deposit in Arizona, which contains a large resource of mica and bi-product feldspathic sand.
Industry titans Morningstar and Barchart.com recently 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.
Odyssey Petroleum Corp ODE.V
Today we are reiterating Odyssey Petroleum ODE.V listed on the Canadian Venture Exchange. The company just announced TSX VENTURE:ODE - News that it has acquired a 100% working interest in the Pelahatchie Field, in Rankin County, Mississippi offering a unique opportunity for Odyssey Petroleum Corp and it partners to develop proven, but yet undeveloped oil and gas reserves that have produced at rates exceeding 2000 barrels of oil per day and two million cubic feet of gas per day, according to production records maintained by Shell Oil Company. However, the field was never fully developed. In a publication dated September 1, 1968 and filed with the Department of Energy (report Conf-681095), and titled "Pelahatchie Field — Mississippi Giant", Mr. H. E. Karges, Certified Petroleum Geologist, stated that this field could prove to one of Mississippi's largest oil fields. Field studies by Mr. Michael Tierney Certified Petroleum Engineer in the year 2,000 indicate that an estimated 100,000,000 barrels (equivalent) could be produced using primary production methods. Secondary and tertiary methods employed later could probably double the amount of reserves recovered. At prices of US$0.35 cents a share, this is akin to buying 100 Million Barrels at the equivalent of 35 cents per barrel.
About Odyssey Petroleum
Odyssey Petroleum is an independent oil and gas exploration company focused on developing significant natural gas and oil reserves in North America. The company is aggressively buying participation in exploration and development fields located primarily in Louisiana and the Mississippi Interior Salt Basin. Management believes that exploration drilling in the highly prolific area will continue to rapidly increase our production and reserves.
Previously Featured Issues
CT's Previously Highlighted Issues that have soared along with Azco Mining Inc mentioned in several 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 400% we projected for this issue. Tradestation Group (NASDAQ: TRAD - NEWS), has risen more than 60% and surpassed initial projections of $9 and now appears headed for secondary objective of $12, and Dale Jarrett Racing Adventure OTCBB: DJRT (NEWS) has rallied strongly off its lows on all time record volume. ODE.V has risen 10% since highlighting this issue a week ago.
MODAR - Momentum Radar - The New Global Standard for Wealth Creation is a unique real time alert service covering a universe of low priced issues that is currently limited to the OTC and OTCBB markets, but will soon expand to include NASDAQ, AMEX and NYSE. Since its Beta launch on March 30 it has been hailed as one of the most potentially profitable advisory services anywhere.
Christian Financial Radio Network
CFRN - originally developed and produced for the niche market of Christian investors, has surprised industry insiders by attracting a worldwide audience of loyal listeners from all walks of life ranging from individual investors to fund managers. They are drawn by the dynamic blend of popular contemporary Christian music, live market updates, corporate interviews, hourly spiritual encouragement, and a strong conservative perspective. CFRN has forged a strategic relationship with The Hunger Site, and has set a goal of eradicating world hunger. Think it's impossible?
Continuing Investigation: The CT research team continues to follow the ongoing situation at CMKM Diamonds Inc (OTC: CMKX).
The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein.
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