The Board of Mexican-focused explorer Azure Minerals Limited (Azure or the Company) is pleased to provide shareholders its Quarterly Activities Report for the period ended 31 December 2013.
HIGHLIGHTS:
IP survey completed, identifying potential for substantial sulphide mineralization across the Promontorio project area
Near-surface IP anomalism located coincident with Cascada high grade copper-gold-silver deposit and Risco Dorado copper prospect
Large chargeability/resistivity anomalies, potentially representing a buried porphyry copper body, commence 300 metres beneath Cascada
Diamond drilling program of 8 holes for 2,430m completed, designed to:
o expand Cascada high grade mineralised zone
o test associated porphyry copper target
Drilling extends strike length of Cascada high grade mineralization to over 140m and down dip to 150m
Drilling intersects porphyry containing copper sulphide mineralization
Assays to be delivered in Q1 2014
Metallurgical testwork from Cascada bulk samples commenced
We are also encouraged by the ongoing support shown by our largest shareholder, Drake Private Investments, during the share placement in November which successfully raised the Company $2.16 million.
We will continue to progress development during 1H 2014, with metallurgical testwork of the Cascada mineralization and further geophysical surveys over the project area. I look forward to updating shareholders with our progress as results come to hand.
OVERVIEW
Azure believes that beneath Cascada and Promontorio deposits is a porphyry body which is the source of the copper, gold and silver mineralization and is likely to be mineralized in its own right, making this an exciting porphyry copper target.
PROMONTORIO
In October the Company completed an IP survey at Promontorio. This 16 line kilometer, close-spaced, deep-seeking survey covered the northern half of the Promontorio project area, including extensions of the Promontorio resource, the Cascada deposit and the Risco Dorado prospect.
The survey was designed to:
Identify sulphide mineralization representing extensions of the high grade copper zones at Promontorio, Cascada and Risco Dorado
Identify silica-rich alteration zones prospective for gold mineralization
Interpretation by the Companys consultant geophysicists identified near-surface chargeability and resistivity anomalies at the Cascada, Risco Dorado and Rojo Grande prospects. Exploration, including drilling, has explained these anomalies by identifying large quantities of vuggy silica (an alteration product of high sulphidation mineralized systems) near all three locations and, in the cases of Cascada and Risco Dorado, significant pyrite and copper sulphide mineralization.
This large anomaly starts at about 300m below surface at the southern end of the survey area (directly beneath the Promontorio deposit), and gradually gets deeper as it extends over 600m towards the north. Taking into account the geology of the area and the presence of the near-surface high sulphidation mineralization, this anomalism was considered likely to represent a body of substantial size containing sulphide mineralization possibly a porphyry copper body.
Diamond Drilling
Following the IP survey, Azure undertook an eight hole, 2,431.6m diamond drilling program to test:
Around and beneath the known mineralization at Cascada with the aim of expanding the high grade copper-gold-silver mineralized zone, and to provide a bulk sample for metallurgical testwork
Previous drilling at Cascada by the Company identified a central mineralized zone with drill widths up to 40m typically containing 2 to 5% copper with peak grades of +40% copper, surrounded by a lower grade copper-mineralized halo and an overlapping envelope of gold mineralization.
In the current program, three holes were completed in the December Quarter and five completed post-Quarter (see Figure 1). Overall, five holes tested for mineralized extensions to the north, south and west of the Cascada deposit, two holes targeted the interpreted porphyry copper body between Cascada and Promontorio, and the final hole was drilled at the Risco Dorado prospect.
Positive assay results have been received from the first three holes testing extensions of Cascada (see Table 1). APR-DD-106 intersected the southern, up-dip extension, APR-DD-107 intersected the western strike extension, and APR-DD-108 intersected the down-dip extension. An additional two holes (APR-DD-110 & 111) were drilled to the west and north respectively of Cascada and assays for these holes are awaited.
FIGURE 1: CASCADA AND PORPHRY DRILL HOLE LOCATION PLAN
TABLE 1: SIGNIFICANT MINERALISED DRILL INTERCEPTS FROM CASCADA
Both holes intersected porphyry with argillic (quartz-alunite) alteration, abundant disseminated pyrite, and moderate to abundant quartz veining forming a stockwork.
These veins contain variable amounts of sulphide mineralization, including pyrite (iron sulphide) and chalcocite (copper sulphide). Both holes were still in mineralized rock when terminated at their planned depths.
The final hole in the program, APR-DD-113, was drilled at Risco Dorado which is located about 400m northwest of Cascada. Forming a prominent bluff, Risco Dorado is characterized by outcropping vuggy silica containing anomalous values of copper, gold and silver. Previously, a single hole drilled by Azure intersected copper sulphide mineralization in vuggy silica containing disseminated and semi-massive pyrite and copper sulphides (see previous ASX release dated 19 February 2013 for details).
APR-DD-113 was drilled to a depth of 200m and intersected vuggy silica alteration, silicified dacite host rocks and variable amounts of pyrite and copper sulphide mineralization. Analytical results are awaited.
PROJECT DEVELOPMENT
Post the December Quarter, a 100kg bulk sample, representative of the mineralization, has been collected from Cascada drill core. This sample will shortly be sent to a mineralogical laboratory in Canada for first stage metallurgical testwork.
CORPORATE
In November the Company raised $2.16 million through the placement of 83.15 million fully paid ordinary shares at $0.026. The primary purpose of the capital raising was to support further drilling at the highly prospective Cascada and Promontorio projects in Mexico.
The placement was made to institutions and professional and sophisticated investors. Included was Drake Private Investments LLC (Drake), a prominent New York based investment fund which is already a substantial shareholder of Azure.
-ENDS-
