Azteca Gold (AZG) shares plunge 52%

Washington-based Azteca Gold Corp. (TSX: V.AZG, Stock Forum) saw its shares plunge more than 52% to 23.5 cents Monday, after the company reported carbonate and sulfide preliminary assay results for hole DDH-006 at the Two Mile Project in Idaho after Friday's market close.

Azteca Gold announced the intersection of both sulfide stock-work veins above previously unknown calcic carbonates composed of what it says may be confirmed as limestone with iron and magnesium carbonates.

For full results, see the company’s news release. In addition to Friday’s news, the company says it intends to provide additional disclosure this week, clarifying certain technical and geological information.

"We are very excited about this new discovery," said the company’s president, Matt Russell. "The adjacent massive sulfide stock-work veins above this limy (calcic) carbonate unit are a good indication that the carbonate unit may have served as a trap for concentrating hydrothermal sulfide solutions. The presence of anomalous gold within the sulfides along with anomalous tungsten is particularly exciting for several reasons. Limy carbonates are known to be associated with large gold deposits such as those found in the Carlin Trend in Nevada. Also, the gold that was mined to the immediate NE of the Two Mile property near Murray, Idaho area during the first half of the twentieth century was accompanied by a tungsten (W) mineral."

"Due to the apparent strength of the stock-work veining in DDH-006 and the fact that the most prevalent ore gangue mineral of the Silver Valley is carbonates (siderite and ankerite), we believe that our massive sulfide targets may be intersected within or immediately below these carbonates," he added.

Azteca also outlined the drilling plan to test, for massive sulfides, newly discovered carbonates located at depth in the Prichard formation.

“Our targets are the same as we found in DDH-005A: lead-zinc massive sulfides with copper, silver, and gold. Both the newly wedged-off hole DDH-006B and previously wedged-off hole DDH-005B will be deepened during July and August with the expectation of intersecting massive sulfides within and/or adjacent to what we anticipate is a significant carbonate layer or unit,” says the company.

On the company’s Bullboard, the most posted board on Stockhouse Monday, THECAPER01 said: “…If they strike and its bonaza time then good for those of us who stayed and if they don't its on to the next play. Remember the company does have other properties with promising potential. This is an early stage exploration. It is in an area that has been the home to many profitable mines over the years. Let's give it time to see what unfolds[sic].”

While Cragmont noted: “Last time I looked, nothing really changed ... management, philosophy, game plan, existing discoveries. Selling into this mess would be a big mistake, I believe. Sitting tight[sic].

guid said: “Oh I think something did change... the story changed... and it is much more exciting that in was in the first place. Wait for the disclosure this week. They're going to explain a bit about the carbonates, as well what they saw in holes 6 and 5B, if i'm not mistaken (especially hole 5B)... and then it'll all be much clearer[sic].”

And, THECAPER01 added: “Five Million Shares Traded so far today and it is not yet half way into the trading day. The stock is down roughly 50%, this is a sell off. Yet while 5 mil were sold, 5 mil were bought. Its how you view things. While sellers see negative for the Two Mile project buyers see positive. That's what makes a market[sic].”