Anglo Asian Mining Share Discussion Threads

[pogue] 06/8/2020 09:35

The bear case on gold was as below, its been overtaken by events mind you...

Have you noticed recent frequent upside price projections for gold these days? Near the end of 2015 and the start of 2016 nearly all analysts were talking about not if, but when gold would drop to 1000 or 800 or 600 or 300 U.S. dollars per troy ounce, with no one talking about gold recovering to 1200 or 1300 which of course is what it did. Now we see repeated guesses as to when gold will reach two thousand, 2500, 3000, 5000, ten thousand, and so on, with hardly anyone suggesting that it might drop to 1800 or 1700. Any very overcrowded trade is always very dangerous regardless of fundamentals.

More importantly, the most reliable leading indicator for gold is its behavior relative to GDXJ and other funds of gold mining shares. When gold first touched 1970 U.S. dollars per troy ounce just before the end of the after-hours session on Monday, July 27, 2020, GDXJ had its last trade of the day at 64.18. On Friday the last trade just before 8 p.m. Eastern Time for GDXJ was 60.25 and that was with gold bullion just above 1975. When higher gold prices are met by lower highs for GDXJ then this is almost always followed by a substantial pullback for the entire sector. It works the opposite way also: when gold bullion keeps dropping while GDXJ resists repeated pullbacks then a rally is usually closely approaching.
The most bearish behavior would be gold actually reaching or closely approaching 2000 while GDXJ keeps forming lower highs.

[droyden] 06/8/2020 09:34

Odd can't paste a link



Works if I make it a tinyurl.com, it's a link to proactive

[wanobi] 06/8/2020 09:34

I shall look away for a few hours today, wait for the market to settle,, no point sitting watching today,,, I do too much of that anyway :-) LOL,,, have a great day all,,, cheers Wan :-)

[brasso3] 06/8/2020 09:32

Why will the FED stop printing money and supporting the markets? Its clear that the US markets are over valued but as they say do not bet against the FED. There is no increased evidence that JP Morgan and Goldman Sachs are long on gold an silver.

[bag158s] 06/8/2020 09:30

It is a good detailed report. Price will pick up soon when the US markets open

[mad foetus] 06/8/2020 09:28

There have been people saying sell everything since March...they have all been wrong. Things don't make much sense at the moment - other than the price of gold. While it might feel nice to have cash, if you've been holding cash since March you've seen it's value drop by about 30% compared to the market and gold.

[bleepy] 06/8/2020 09:21

Psa and extensions...

Mineral Tenement and Land Tenure Status
Exploration activities carried out in H1 2020 by AIMC occurred over three of the Company’s Contract Areas; these are the Gedabek, Gosha and Ordubad CAs (Figure 1).

Each CA is governed by a separate Production Sharing Agreement (“PSA”) and managed by AIMC under the auspices of the Azerbaijan Ministry of Ecology and Natural Resources (“MENR”).

Figure 1 - Locations of the CAs held by AAM and managed by AIMC.
The PSA grants AAM a number of ‘time periods’ to exploit defined CAs, as agreed upon during the initial signing. The period allowed for early-stage exploration of the CAs to assess prospectivity can be extended if required.

A ‘development and production period’ of fifteen years commences on the date that the Company holding the PSA issues a notice of discovery of a deposit within the CA, with two further extensions of five years each, available at the option of the Company. Full management control of mining and exploration activities rests with AIMC.

Under the PSA, AAM is not subject to currency exchange restrictions and all imports and exports are free of tax or other restrictions. In addition, MENR is to use its best endeavours to make available all necessary land, its own facilities and equipment and to assist with infrastructure.

The Gedabek CA does not lie within any national park and at the time of reporting, no known impediments to obtaining a licence to operate in the area exist. The PSA covering the Gedabek CA is in good standing.

[brasso3] 06/8/2020 09:17

Its hard to see how gold will ever be as low as $1500 again. Most gold mining companies are fair value maybe at that gold price. You could argue that being in a gold miner with no debt and lots of cash (AAZ) is as good as being in cash. If the banks start collapsing you are only protected up to £85k in the UK and that insurance (backing) comes from a government that has no money!

[2sporrans] 06/8/2020 09:15

The drilling samples for Gadir extension [down-dip and lateral - ie. tunnel] look
good.

The 2nd table [detailed report] for the "BQ" cores; the short drills done from the passage-chambers with JORC and production modelling in mind have several good grades over decent meterage.
that's the series referenced;
20UDD01, 20UDD02 etc etc

[mad foetus] 06/8/2020 09:10

So, in H1 we produce 33k GEO, and target has been reiterated at 75-80k for the year, so 42-47k in H2. With gold at 2050, there is a chance that AAZ could turn over $100m in H2 alone. Only a few months ago managing that amount for the full year was seen as a significant achievement. That's how far gold has gone, and the share price here hasn't even begun catching up. Our margins are now double what they were a year ago and the price is at the same level. Patience!

[jbravo2] 06/8/2020 09:08

@2sp
I took the red line to be the apporoximate tunnel too but it’s not coming from “aloft” as you posted. It’s coming from the opposite side of the mountain. The top is roughly where Gedabek OP is written. Where we stood in the video. You can see the contours of the mining topping out along that ridge. That’s the top of that hill

Have a look on google earth to understand it or PM me and we can move to email so I can send a pic for you, it takes me ages to remember how to post a pic each time

[pogue] 06/8/2020 09:05

avsome
That was a sobering read, sell everything including gold miners! I am getting twitchy I must admit at the current gold price it has gone up very fast, good to read the bear case.

[brasso3] 06/8/2020 09:04

Proactive
@proactive_UK
·
23m
$AAZ Anglo Asian Mining wants to expediate remaining field work via
@proactive_UK

@AAZMining
#AAZ

[2sporrans] 06/8/2020 09:02

wrt to the red 'vector' in the portal etc graphic i posted.

i intially took this to be the approximate 500+m route for the new tunnel.
We do know it's going to be a ~500m decline....

it's not a pointer; i.e. the portal is only about 50m laterally from pit 4??

Help me out jb.
Anyone?

[jbravo2] 06/8/2020 09:00

@spider - agree entirely
As most on this thread now know, it has long been thus.
The big bucks have been made by the patient. Those who take time to understand and accumulate.
Sure, traders make their slice, it’s actually really hard not to make money with this company, but those who take their time, read, study and accumulate are the real winners.
Long may it continue, I’m happy enough with the detail they provide. Better that than snappy headlines and no new mines.
New mine here. Within a year. Not explicitly spelt out yet, but the signs are there.

[brasso3] 06/8/2020 09:00

We are not down due to the RNS. The close last night was not a true reflection of yesterdays trading and we also touched the all time high. Let it have a breather now before bursting past 175p next week.

[bleepy] 06/8/2020 08:54

Ignoring the sell on news brigade as the 3 reports not of interest to them.

On with 1st report, Gedabek CA...

P51...

Gilar
Target Overview
“Gilar” is a new mineral occurrence that was discovered during Q3 2019, whilst fieldwork was being conducted over the region. It was not directly identified through the ZTEM survey, probably due to the narrow vein nature of the mineralisation zone, but it is located on the margins of the Parakand anomaly. It lies approximately 2 km south of the Avshancli exploration area.

Channel sampling highlights from this outcrop include:
 3.56 g/t Au over 1.5 metres (strongly silicified-haematitic zone),
 0.66 g/t Au & 52.0 g/t Ag over 1.0 metres (abundant pyrite mineralisation zone),
 0.36 g/t Au over 1.0 metres (around oxide outcrop zone).
Chip sampling highlights from this outcrop include:
 7.69 g/t Au & 2.26 % Cu over 0.5 metres (quartz vein),
 0.46 g/t Au & 0.22 % Cu over 1.0 metres (pyritized lava breccia),
 1.26 g/t Au over 1.0 metres (intense haematite, fault zone).

DD Programme
Seven surface DD holes were completed over the Gilar district during H1 2020 (for 2,162.5 m), to commence the initial drill programme.
Analysis of the samples was fast-tracked through the AIMC laboratory and significant intercepts are reported below in Table 8. Drilling will continue into Q3 2020,

Notable grades Au g/t...1.28, 2.11, 2.99, 3.5, 14.11.
Also significant silver and copper grades intercepted

[avsome1968] 06/8/2020 08:53

Good read pull back will come.

[riggerbeautz] 06/8/2020 08:51

Wan had P.M’s not risen the reaction would probably be more averse, it’s highly detailed and doesn’t shout buy or sell, I like it. Traders expecting a rocket on good news are possibly withering away but only a real moron would sell out of a cash cow like AAZ.

I’ve been glancing over snippets for an hour on and off but too much to digest, so I’ll pass, only a fool can’t see they are busy and many P.M’s are there, they are progressing well to me, the detail is proof enough. I’ll let go my trading batch soon as well in profit with it now but there will be no major sell off, P.M market too strong, traders beware lol

Catch up later

[spidertricks] 06/8/2020 08:50

Its amazing how quickly the markets react to this. They havent had time to digest or understand the RNS. It's as if they quickly skim for something they dont understand then mark it down when any news is buried in the detail. Itll come good once again once they understand.

[2sporrans] 06/8/2020 08:48

Here's the portal + pits 4, 6 and existing u/g passages graphic:




So, the new tunnel is coming from the other side of the main-pit/hill to pit 4
That's why it's over 500m long.

Effectively bypassing all the ongoing main pit workings - which make sense.

A heck of an incline/decline though.

Note the relative proximity of pit 6 to pit 4.

And
i assume the plan remains to construct the "CRITICAL" [sTEVE Westhead's word] pit 4 to 6 tunnel
in due course.
More on that when i find it.

Short term, it does indeed seem that the ores near pit 4 and along the chambered/drillled out tunnel to Gadir are being targeted for Q4 production.

[gary hindsight] 06/8/2020 08:48

Also agree katsy. The detail is great and shows them to be very open and detailed and there are many on here who can read and digest it all. But some punchy highlights sets the tone for the detail. To have to read pages and pages just to understand if it's good or not does not seem the most effective. When I started reading it it started by saying results were variable and it sets the wrong message at the beginning

[wanobi] 06/8/2020 08:41

CNG coming along now :-) excellent GLA Holders, cheers Wan :-)

Hideous quoted spread,,, MM's don't know what to make of it and nor does the market LOL

[wanobi] 06/8/2020 08:38

LOL Rb,,, I do like being a moron, it suits me :-) LOL Cheers Wan :-)

meanwhile,, these sell off's on news are doing the share price strength no harm at all,,,, those who are ST get out and hopefully allow the LTH's to accumulate even more sticky shares and the more that goes on the stronger the share price will become until eventually hardly any sell on the news takes place,,,, surely, right :-)

[excellance] 06/8/2020 08:35

This is actually a very cute report.

Designed for the boffins rather than bullet point bulletin board warriors, the report appears obtuse, but a lot of progress has been made in difficult conditions.