New Drilling Expands Gold-Silver Targets in Tombstone District

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* Disclosure for the quotes from the Clive Maund article published on June 2024 and October 2024

1. For the quoted article (published on June 13, 2024, and October 1, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500.
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The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be  only be construed as a recommendation or solicitation to buy and sell securities.

Aztec Minerals Corp. (AZT:TSX.V;  AZZTF:OTCQB) has commenced reverse circulation (RC) drilling at its Tombstone project. Located in the historic Tombstone gold-silver mining district in Cochise County, Arizona, the drilling program aims to expand known shallow zones of gold and silver mineralization. Its aim is to target areas previously identified as prospective during past exploration.

The initial phase of this program will extend the mineralized footprint identified between 2020-2023 at the Contention Pit and move toward the Westside area. Focused on discovering high-grade silver-gold mineralization by testing multiple mineralized structures, the program includes historic production zones such as the Westside anticline and Sulphuret dike.

Aztec's management views the Tombstone project as a significant opportunity to uncover further mesothermal and carbonate-replacement deposit (CRD) mineralization. Such discoveries could potentially enhance the company's prospects within this historic district.

All Things Gold and Silver

As Stewart Thomson of 321 Gold wrote on September 17, "Gold is in a sweet spot where gamblers can buy, and investors who buy only weakness should simply enjoy their core positions ride."

Technical Analyst Clive Maund wrote, "This is, therefore, considered to be a very good point to buy or add to positions in Aztec Minerals, which continues to be rated a Strong Buy here."

This positive outlook is reinforced by the belief that upcoming rate cuts could lead to a significant drop in real interest rates, potentially pushing gold prices to new highs, even reaching US$4,000 or US$5,000 per ounce in extreme scenarios.

The article also pointed out that analysts at Goldman Sachs forecast a rise in ETF buying, which would further support the upward trajectory of gold prices.

In a Kitco report published on September 26, "Gold is making new highs," with gold futures approaching an upside target of US$2,730. This rally in gold prices highlights the potential for precious metal explorers to capitalize on increasing demand, especially as the sector remains a key area for growth and investment.

Then, on September 25, the AP wrote, "Analysts have bullish outlooks on the price of gold for the months ahead," with expectations of continued gains driven by economic uncertainty and geopolitical tensions. Central bank demand for gold remains strong, with Joe Cavatoni of the World Gold Council noting that this demand is "well above the five-year average" due to concerns over inflation and economic stability.

Catalysts of Aztec

Aztec's latest RC drilling campaign at the Tombstone project highlights its strategic plan to advance its gold-silver discovery in Arizona. According to the company's investor presentation, the step-out drilling around the Contention Pit intends to expand shallow, bulk-tonnage oxide gold-silver mineralization horizontally and down-dip. The investor presentation emphasizes the project's potential. In it, they note high-grade intercepts from previous drill programs, including 3,477 grams per tonne (g/t) silver over 1.52 meters (2023), which reflect the scale of mineralization in the district (#2).

Further exploration in the Westside area, guided by recent geological research and surface exploration, could also uncover deeper CRD-style mineralization. This would offer another avenue for significant resource expansion and follows a broader plan to test Taylor-type lead-zinc-silver targets. The goal is to leverage the favorable geological conditions identified in the Tombstone district.

Analysts Analyze Aztec

In June 2024, Timothy Lee, mining analyst at Red Cloud Securities, initiated covered on Aztec, with a Buy rating and CA$0.60 target price. In the report, Lee wrote, "In our opinion, Aztec is well-positioned to benefit with these two advanced exploration-stage projects with known near-surface oxide mineralization and untested deeper potential."

*Technical Analyst Clive Maund also maintained a bullish stance on Aztec Minerals in his June 2024 analysis. Maund rated the company as a Strong Buy, emphasizing the "potential for a big discovery" at its properties.

He pointed to the significant progress Aztec had made with its exploration programs and noted that the stock had reached a favorable price zone for investors. Maund remarked that the Tombstone project had "exceptionally positive" prospects. 

*On October 10, Maund reiterated his Strong Buy rating in light of today's news. In his update, Maund wrote, "This is, therefore, considered to be a very good point to buy or add to positions in Aztec Minerals, which continues to be rated a Strong Buy here."

Ownership and Share Structure

According to the company, Aztec has a market cap of CA$19.2 million and 123.7 million shares outstanding.

According to Refinitiv, 5.50% of Aztec is owned by management and insiders.

15.19% is with strategic investors. Notable holders are Alamos Gold Inc with 8.22% and Kootenay Silver Inc with 6.98%

The rest is in retail.