Azteca Gold

Anybody here own shares of Azteca Gold? Any thoughts on that one??? A few people have recommended that one lto me lately - largely based on Matt Russell's deal making ability. It is one of JH's big holdings. Not sure if the EPA situation is still hanging over the Bunker Hill mine or not???

I walked away when I saw the price of the Bunker Hill ($46M, I think). I see massive dilution coming for retail investors. I own USA.V, ASLM.PK and ILDS.PK in the same neighbo(u)rhood. (and a little MERG.PK and LFEX.PK). PP guys might do OK!

Few understand Azteca. There are many mining companies with market caps many multiples of Azteca's currect market cap that have nowhere near the potential or the quality of properties that Azteca has. Most of you likely already own some of those companies, so do your homework on this one before declaring it no good because of "massive dilution coming for retail investors". Market cap, not number of shares, is the critical element and Azteca's market cap is very low for the properties they have. Matt will resist massive dilution, and, apparently with the zinc and lead credits, Bunker Hill was the most profitable mine in silver valley. They have a historic resource of about 60 million ounces of silver plus the zinc and lead, and should be able to prove up a lot more than that. With the zinc and lead credits it could be the lowest cost silver producer in silver valley, and will be producing long before many other companies even prove up significant reserves.

The Guerra al Tirano property in Mexico is next door to the Palmerjo property. Coeur d'Alene paid over a Billion (yes, BILLION) dollars for Palmerjo, based on the drilling results from that property. Apparently Guerra al Tirano is even more prospective than Palmerjos property. Initial drill results on Guerra al Tirano are expected soon.

The Nevada property also has excellent potential, near several majors who have great properties.

Matt built GMO in a short time from a $0.40 PS company to an $8.00 PS company and fully intends to get similar results from Azteca. So far he has proven himself again, aquiring 5 excellent properties in less than a year, and, with Bunker Hill, negotiating with the old owner and the EPA in a short time when no one else had any success in doing that.

Check out the links to Azteca presentations below or get them at the Azteca website. Azteca is my largest holding (currently Jason Hommel's largest stock holding as well), and I expect to make a lot of money on it. You have to ask yourself WHY this is Jason's largest holding. And Jason hasn't even started to promote it yet! Watch the share price when he does.

http://www.azteca-au.com/Images/presentations/Daily092507.mp3

http://www.azteca-au.com/Images/presentations/sept2007.pdf

Garry, thank you for your information. Do you happen to know how they will go about paying for the Bunker Hill? That's alot of money for a company that size, which is why I expect dilution

The options are to do a joint venture (there are majors that would love a shot at this one), or to just go it alone and reap all the benefits. Dilution is not necessarily an evil with an advanced project of this size. Look at most producers with significant production, or near term producers with significant production potential, (like Azteca has), and you will see several hundred million shares outstanding. If a partner is brought in it is likely that the partner will pay the entire 46 million purchase price and significant further dilution would not be necessary. Either way it will no doubt result in a share price that will be multiples of what it is now, and real multiples, not the pie in the sky kind.

Matt is one VERY smart guy and an EXTREMELY successful negotiator. Just look at what he has accomplished in a very short time, less than a year. He also holds a very large number of shares, and I am fully confident that he will do what will be best for the shareholders. Watch the daily action on the stock. It takes very little buying to move the stock up strongly. Clearly most of the shares are in very strong hands, held by people like Matt, Jason, myself and several others who own large positions and have no intention of selling until Matt has completed his plan.

I have full confidence in Matt's game plan, and, like I said, I expect to make a lot of money on this stock, hence my largest holding. And, as I said before, which is very significant in my opinion, Jason's largest stock holding as well.

Azteca Gold Corp.: Diamond Core and RC Drilling Intersect Vein at Depth at Guerra al Tirano and Diamond Drilling to Start this Week at Marietta
Wednesday October 10, 9:12 am ET
SPOKANE, WASHINGTON--(MARKET WIRE)--Oct 10, 2007 -- Matthew Russell, President of Azteca Gold Corp. (CDNX:AZG.V - News) (the "Company") announces that the Company has completed 5 diamond drill core holes and 4 RC holes at Guerra al Tirano (GAT) as of October 8, 2007. "M2 Technical Services is well along on their diamond core program at Guerra al Tirano and Layne de Mexico is moving rapidly on their 5,000m RC drilling program," explained Russell.

First assays on the GAT diamond drill core and RC cuttings are expected within 2 to 3 weeks.
"With the record monsoon rains of the summer over and with Layne de Mexico drilling RC for us, we are making rapid progress toward our objective of delineating a gold-silver resource at Guerra al Tirano," Russell emphasized.
According to the Company's Vice President of Exploration, John Mears, who is the qualified person for this press release as defined by National Instrument 43-101, 2 of the 5 core holes penetrated the GAT vein with true vein widths of 16.5 FT and 18 FT, a third core hole was lost as it entered the vein, a fourth core hole penetrated old workings estimated at a minimum width of 7.5 FT, and a fifth core hole was lost in a post-mineralization fault in the hanging wall adjacent to the vein structure. Depth of core holes ranged from 235 FT to 335 FT. 3 of the 5 core holes were extended at least 20 FT into the footwall of the vein to determine potential for footwall mineralization beyond the vein.
Layne de Mexico has finished 4 RC holes and these have been shipped to ALS Chemex for prepping in Hermosillo, Sonora, Mexico and assaying in Vancouver, BC, Canada. Multiple RC holes are being drilled at each of the diamond core hole locations to both test the vein along strike and down dip as well as to delineate a gold-silver resource in the hanging wall of the vein.
Marietta Project - Mineral County, Nevada
7 drill pads have been prepared on the patented claim group at the Marietta Project in Mineral County, Nevada. Diamond drilling is set to begin tomorrow, October 11, 2007. Two holes will be drilled at each location: the first hole of each station at -50 degrees to a depth of approximately 800 FT to test the gold detachment fault geophysical and geochemical targets and a vertical hole to a depth of at least 1200 FT to test the deeper copper intrusive geophysical target. Geophysical targets were identified from recent work by Quantec Geoscience USA Inc. of Reno, Nevada as described in a September 7, 2007 press release.
With first core expected out of Marietta during the week of October 22, 2007, first assay results are expected by the second week of November.
WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
Shares issued: 98,574,802

Matt is doing what he said he would do. Not selling until $5.00. Strong hands holding most of the shares. If someone tries to buy a good sized position now, this baby will fly.

Hope some of you are doing your DD on this one. If in doubt call Matt Russell. He'll explain what he is doing and what is to come . Phone number on Azteca website.

Starting to move up again. There was a nice spike up to $0.90 today.

I bought 10K shares yesterday as AZGFF.PK and was surprised that my small order moved the price...not many willing sellers!

Studbkr - I found the same thing. Gary recommended it over on the JH forum. After doing some DD on it, I have been buying it since 0.58. It sure doesn't take much to move up the price on this one Once some drilling reports come out later this year, it will probaby make a really nice run. Also the JH effect might come into play on this one since it is one of his big holdings.

I think this is a good one, both for long-term and trading the upcoming "Jason Effect". I have decided it's a worthwhile investment even if they have to do a big dilution to buy the Bunker Hill

Jason effect coming on monday! Just sent to his unpaid mailing list. (of course, IMHO, "productive lead mine" doesn't mean much compared to HL or USA.V which are in production now and the Bunker Hill is "someday"...)

Jason is increasingly defensive about pump-and-dump accusations.

Much of this article is repeating undocumented opinions. When he started his weekly silver stock updates about 4 years ago, he really spent time on what he wrote...

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The Bunker Hill Lead/Zinc Mine
Silver Stock Report
by Jason Hommel, October 12, 2007

Lead prices are up 900% in just a few years, and guess who owns an option on one of the most productive lead mines in Idaho, the Bunker Hill?

Azteca Gold Corp (AGZ.V, AZGFF.PK) (Symbols work at Yahoo! Finance)
http://miningpedia.com/?s=azteca
Shares: 98,574,802
Warrants & Options: 40,025,906
Stock Price: C0.85/share
Fully Diluted Market Cap (USD): $114,627,908

Azteca recently acquired an option on the Bunker Hill mine.
http://biz.yahoo.com/iw/070830/0296840.html

Azteca needs to raise $46 million to exercise the option on the Bunker Hill. I thought they would wait a year, but I learned this evening that they are discussing financing right now. They are trying to decide whether to raise the full amount by issuing shares, or by spinning off the Bunker Hill project as a separate company. I told management that I'd prefer they spin it off, to avoid excessively diluting the shares of the company, and that's what management is leaning towards doing, but they are currently asking for shareholder input.

The financiers are probably eager to conclude a deal soon, because Azteca is hitting great results on their other properties in Mexico, and drill results from those should be out soon, and the major financiers probably don't want to have to pay much more for Azteca shares after those come out.

I do know that Strategic Nevada Resources was also bidding for the Bunker Hill mine a while back. Interestingly, I found this quote referencing the huge size of the Bunker Hill mine in one of their press releases here:

Strategic Nevada Resources, Welcomes Thomas F. Fudge Former VP of Operations for Hecla Mining and Former President of Hecla's Venezuelan Subsidiaries to the Board of Directors
http://biz.yahoo.com/iw/061220/0197253.html

Mr. Thomas Fudge was quoted as saying:

"I know from personal experience that the Crescent Mine sits right in the middle of elephant country, with the Sunshine Mine on one side and the Bunker Hill on the other side."

So, I know that the Bunker Hill mine is a huge former lead/zinc/silver mine, but little more.

At the Silver Summit, I asked around to see what people's opinions were about the famous Bunker Hill mine, which is one of the most prolific and productive of all the mines in the Silver Valley, next to the Sunshine mine.

One knowledgeable man in the industry gave a wild guess that it could take somewhere around $50 million to put it back into production. Another man noted that the former railroad infrastructure is no longer in place, and wondered about the potential replacement cost. Another man said that the entire deal is such a flip of a coin, depending entirely on EPA whims. Another industry fellow guessed that Azteca stock should soar to about $6/share based on this acquisition, and although I greatly respect that man's knoweldge of the Bunker Hill mine, I don't know how much he knows about stock prices.

David Bond wrote up Bob Hopper, the Bunker Hill, and Azteca, a few months back, here:
http://www.silverminers.com/publications/showpub.aspx?id=5409

The Bunker Hill is primarily a lead/zinc mine. In the latest geologists report by Azteca:

http://www.azteca-au.com/Images/bunkerhill/BunkerHill_43101.pdf

I could find no information on historic annual production levels, which is unfortunate.

The Reserves seem low, at only about 59 million pounds of lead. But other, informal second hand rumors suggest that there could be 30 billion pounds of lead in that mountain. Whether that can be extracted profitably, and at what rate, remains to be seen.

Azteca plans to use their own expertise to do some drilling and work on a feasibility study to determine the potential profitability and mining plan over the next 18 months to 2 years!

Lead prices are up 900% in 3 years!

What I do know is that lead prices are hitting all time highs, up about 900% from just a few years ago. Lead prices bottomed out at about $.18/pound in 2003, while hitting $1.80/lb. just this week.

Lead prices are now more expensive than zinc, which is now more expensive than aluminum, and it all used to be the other way around, with aluminum being the most expensive, and lead being the cheapest!

What seems to be driving lead prices? China's economic development, and the U.S. war. It seems it's about Batteries and Bullets.

Iraq war affecting ammo supplies
Wednesday, October 10, 2007
http://www.heraldextra.com/content/view/239884/3/

Ammo used to take about a month to arrive. Now, it takes from 9 months to a year! I'd say that's a shortage!

The U.S. is spending about a billion bullets per year in the war.

China "e" bikes silently drive lead demand
October 10, 2007
http://www.sciam.com/article.cfm?alias=china-e-bikes-silently-dr&chanId=sa003&modsrc=reuters

"a 48-volt bike battery uses just under 10 kilograms of lead, similar to that used by a medium-sized car like a Toyota Camry. They last for about a year, compared with over three years for a typical car battery."

"China produced 19 million battery driven bikes in 2006"

(China's e-bikes use up car-sized batteries, 3 times as fast as cars!)


I own 1,481,600 shares of Azteca Gold, purchased with my own money, with a current market value of $1,297,239.

(I will admit that I sold about 200,000 shares of Azteca Gold this week to lock in profits from my purchase of 2 million shares at $.15/share in January, 2007, and to do so prior to writing up the stock, so as to avoid being accused of "pump and dump". I have now sold enough shares to receive back my original capital, and a small profit. And I will not sell any Azteca shares next week.)

Al Korelin recently gave me an opportunity to clear my name against numerous "pump and dump" and "frontrunning" accusations. Thank you Al. Listen to this radio report here:
http://kereport.com/DailyRadio/Daily092807.mp3

I own 50,000 shares of SNS Silver, purchased with my own money, with a current market value of $61,804.

Neither company has paid me to produce this report.

One of the important things that Jason left out is that the historical 43-101 shows approx 60 million ounces of silver.

Glad to see that a few of you got into this at lower prices. The beauty of this one is that there is no hype and that most of the shares are in strong hands looking for more shares on any dips, so gains are real and well deserved.

A few have done extensive DD and understand the potential of the properties, and will more than likely make 10x their investment in a relatively short time. Others will follow the pack at much higher prices than current SP and will limit their gains.

If you haven't yet bought, do yourself a favor and call the Pres. Matt Russell for more info. He's a very smart and sincere guy who will give you the straight info without any embellishments or hype.

Garry

Would someone please go to the Jason Hommel forum and correct the misinformation that Shelby is putting out about azg. On the czn.v thread he has stated that azg has 200 million shares outstanding, when his own miningpedia shows 98 million + 40 million warrants. By my math that adds up to 138 million Fully Diluted, which is what it is, not 200 million. He also states that they have environmental hurdles, when Matt has already negotiated a signed agreement with the EPA and has their endorsement and full co-operation. I'd do it myself but Shelby has blocked me from posting there. Thanks.

Garry - I corrected the share number at JH forum. I don't understand why you got blocked there???

Quote :

I don't understand why you got blocked there???

Simple, Garry represents a threat to shelby. shelby is extremely anti-freemarket and is rather, totalitarian. Fall in line and you get a lolli-pop, step out of line and you get the axe. A free exchange of ideas is not encouraged at the Hommel forum, at least under shelbys dictatorship. Jason would have done well to keep Studbkr as an additional moderator.

Funny...Even a rich man like Jason can be held by the cajones, E.G. Miningpedia.

I am a simple man and have more than I need. God forbid I become important and need more than I have.

Shelby objected to my posts warning the new mining share investors that there was a good chance of a severe correction coming in the mining shares in the summer. I was trying to warn them that if they bought too high while everyone was pumping the stocks in the spring they could get hammered real bad sometime in the summer, which happened in August this year (last year it was in May). He ridiculed my warnings and said that there was no way shares were going down, only up, then I guess he blocked me from posting as he was needing more cannon fodder for the picks he was pumping and then dumping.

I like the tone and respect here much better anyway so he probably did me a favor.

Garry:

I bought over 100k shares of AZG and am holding them close for now. Maybe someone could buy them for $5 each! I may buy more later but not much later! I too was impressed by Matt's plan over the phone. Stand by for lift off of AZG. I don't worry too much about Shelby's opinions. Look what happened to him on Noront! Boy did he put egg on his own face or what? That was a good one alright! I'm looking for a nice Christmas present on this one this year!

There should be a lot of news coming out the next few months so would bet there will be a double from here by the end of the year. The results from the Mexican property may surprise a few people as most of the attention has been on the acquisiton of the Bunker Hill Mine. Here is the latest press release out last week:


Azteca Gold Corp. Drill Permits Received for Silver Valley Two Mile Project and Drilling Progress Updated for Guerra Al Tirano and Marietta
Thursday October 18, 9:17 am ET


SPOKANE, WASHINGTON--(MARKET WIRE)--Oct 18, 2007 -- Matthew Russell, President of Azteca Gold Corp. (CDNX:AZG.V - News) (the "Company") announces that the Company has received a drill permit from the USDA Forest Service for its Two Mile silver exploration project. The drill permit is for 6 pads of which 3 drill pads will be prepared for diamond core drilling which will begin the week of October 22 and continue through the fourth quarter.
ADVERTISEMENT


"The last month has been both busy and exciting for Azteca management and staff, as we have launched three targeted drilling programs: the first in the Sierra Madre of Mexico, the second in Mineral County Nevada, and now the third in the Silver Valley of Northern Idaho," explains Russell. "During the fourth quarter investors can expect a steady stream of drilling updates and assay results from these silver and gold projects," adds Russell.

Two Mile - Silver Valley, Shoshone County, Idaho

On August 14, 2007 the Company announced it had entered into an arms-length joint venture agreement (the "Two Mile Joint Venture") to acquire up to 50% of the Silver Valley Two Mile Property. The Two Mile Property is owned by Silver Royal Apex, Inc. of Wallace, Idaho and is comprised of 118 unpatented claims. Diamond core drilling is on track to begin the week of October 22, 2007 on the first of the three pads being readied.

Marietta Project (MAT) - Mineral County, Nevada

Diamond core drilling is underway at the Company's 100% owned Marietta project. The first hole is being drilled at -50 degrees to a target depth of approximately 800 FT to begin testing the gold detachment fault geophysical and geochemical targets identified from recent work done by Quantec Geoscience USA Inc. of Reno, Nevada. First core is expected out of Marietta the week of October 22 with first assays estimated for the second week of November.

Guerra al Tirano (GAT) - Sierra Madre, Temoris, Chihuahua, Mexico

Layne de Mexico continues with the RC drilling at a rapid pace, and has now completed 10 holes or approximately one third of the 5,000 meter program. Over the next month an extension of the main drill road to the south along the Tres de Mayo concession as well as a lower drill road will be accomplished. These additional drill roads will afford access for diamond core and RC drilling over much of the vein strike length on the Tres de Mayo concession, which has not yet been tested in the current program. First assays on the diamond drill core and RC cuttings are expected within 1 to 2 weeks.

This press release has been reviewed by John Mears who is the qualified person for this press release as defined by National Instrument 43-101.

This is a copy of my post at the other forum

silverman 11-30-2007 08:48 PM

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22 million shares FT on November 25, 2007

22,250,000 shares were free trading on November 25, 2007.

This is part of the reasons why the stock is down a lot.

I am buying more if price droped to 45 c

GARRY - WHAT DO YOU KNOW THAT YOU CAN SHARE ?

Does the market give us a gift ??

I think that there are better deals out there without the concerns over dilution. I sold out out at $.90 American because I didn't want to deal with about 150 million shares. I think a far better gift for something comparable is Arian Silver. They are eager to go into production for 2008.

I think that there are better deals out there without the concerns over dilution. I sold out out at $.90 American because I didn't want to deal with about 150 million shares. I think a far better gift for something comparable is Arian Silver. They are eager to go into production for 2008.