Arizona Silver Exploration Inc (AZS-V: $0.26)
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SVH Tracker - May 30, 2017: Initial Arizona Silver holes at Ramsey disappoint

(Initially published as an email Tuesday morning May 30, 2017). I have been on the road since Wednesday and am in transit this Tuesday morning. Arizona Silver released results for 2 RC holes drilled on the Ramsey project. Hole #2, which was lost before hitting the projected detachment fault that hosts the Ramsey silver vein, did not yield any silver. Hole #3 did cross through the detachment fault and yielded 58 metres of the target zone which was continuously mineralized with silver as expected, but the silver grade ranged only 0.5-3.0 g/t silver. That is just smoke and it suggests that while the Ramsey vein system is present under the gravel cover the silver mineralization has faded away. There is no narrow high grade 30-40 opt silver internal at the fault, nor is there a 3-4 opt halo around the vein. There is thus no evidence so far supporting the visualized outcome of a 60 million tonne system grading 125 g/t silver. The tonnage footprint is present but the grade so far is not. It is possible that the system is weak in the area of hole #3, but the glass is definitely half-empty at this stage while we wait for the rest of the holes. The rig has been moved to the area of the Ramsey vein itself while results from the remaining holes are awaited. The stock closed at $1.21 on Monday, which was way into S-Curve territory, and not surprisingly is down $0.94 at $0.27 on 4.4 million share volume as I write this. This is an over-reaction caused by the stock's run-up. If the stock had stayed at $0.61 where I recommended it on May 18 ahead of assays confirming a discovery, it would have sagged to only the $0.40 level as the market waits for the full picture as to what the Ramsey fault offset extension is all about. I expect the stock to recover into the $0.40-$0.50 range as the quick gratification seeking crowd exits.

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