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Arizona Mining (AZ.to): Here’s what he said

So Arizona Mining (AZ.to) President and CEO Jim Gowans was on Andrew Bell’s show today to talk about all this manganese thing and below find the transcript of the chunk about Mn and that. But before we get to that, anyone long the stock should be concerned about the plan AZ.to has to jump straight from PEA (due 1q17) to a full feasibility study by the end of 2017. To quote President/CEO gowans, “Current schedule is to push for a feasibility study by the end of next year”. No pre-feas, Jim? That’s to say no
pre-feas and a full FS in 9 months straight after the PEA on a deep deposit
with 2/3rds inferred resource and complex met? Are you serious? Do you realize what “fast and loose” means, Jim?

But anyway, here’s the transcript of the Mn section and you just gotta love the way he says “we do know there’s a problem” and “we do know
that’s it’s an issue” after the company’s recent flat denial that it’s any sort of problem or issue. Jim Gowans, caught with his pants down by good journalism:
“We do have manganese in our zinc concentrate and that’s been
acknowledged since the first technical report that came out in February
this year. I think just because of the errr…latest technical report
because the resource has grown so large so quickly it’s become much more
on everybody’s radar. Err, but the results have never been changed.
We’re currently going through…errr…metallurgical test work as you
always do in work towards a feasibility study. We do know we have some
manganese in our zinc concentrates. Our zinc concentrates on the whole
are quite clean except for the manganese and its, it’s variable in the

Andrew Bell:
“Brent Cook is one of our regulars, he and Joe Mazumdar run the website
Exploration Insights. I’m going to give you a quick couple of quotes
from Brent Cook who very kindly shared his comments on this. He said,
“The article forced the company to advise the market about this issue”.
He also says. “We don’t think preliminary results are a fatal flaw for
Arizona Mining”, however he does go on to say, “This will force the
company to manage risk by reducing the manganese content in its final
concentrate and working with smelters that are capable of blending down
the content, which will no doubt add costs and risk”. So can I ask you
one thing, were you slow to disclose this manganese issue prior to the
website raising it?”

Jim Gowans:
“No, we put it out in our technical report from the metallurgical test
work that you saw. And that technical report from October was actually
put out in February this year. I think they just errr..became more aware
errr…errr..with all the conversation everybody looking at our stock.
Err, we do know there’s a problem…errr…you know about certain
amounts in zinc concentrates, so we’re working on our metallurgical test
work at (place name) to see what can be done..errr…with that…err
any of our conversations we’ve had and, you have to understand that
we’ve had all the major mining companies have been to the site and
looked at our core…err…they’ve looked at our results and everybody
from South Deep, Teck errr…Rio Tinto and all the big companies that
are interested in the orebody have been around and looked at that. We’ve
never had anybody say that it’s an insurmountable (problem), we do know
that’s it’s an issue, so we’ll just have to make sure that when we’re
selling our concentrates we do it well. The…the…errr..manganese in
low amounts is a good thing in processing zinc in the electrolytic
process, but high amounts it just causes some downtime and some
interference in the processes. But in our conversations with all our
people and concentrates sales people, we do know we’ll get some penalty
in the amount, it’s very small, 1% to 2% of the total value of the
concentrates, but nobody’s ever come close to saying that it would be a
not-saleable concentrate, because other than that it’s very clean.”
PS: You see how Gowans casually names major companies with CAs at AZ.to? Is this guy really that stupid? I wonder how Rio Tinto feels about being used as a pathetic marketing ploy on live TV by a junior that’s already been caught out telling fibs?

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