Mineral Resource upgrade expected in Q1 2019

• Resource infill drilling confirms good internal continuity of mineralised zones:

  • OPDH-184: 5.25m @ 24.4% Zn+Pb from 48.35m; incl 3.05m @ 39.3% Zn+Pb

  • OPDH-185: 8.65m @ 11.4% Zn+Pb from 61.15m; incl 4.55m @ 19.6% Zn+Pb

  • OPDH-194: 6.00m @ 11.7% Zn+Pb from 39.00m; incl 2.95m @ 21.9% Zn+Pb

• High-grade mineralisation extended further into the Central Zone:

  • OPDH-187: 3.60m @ 15.5% Zn+Pb from 108.45m; incl 2.45m @ 20.5% Zn+Pb

• Drilling is continuing

Azure Minerals Limited (“Azure” or “the Company) (ASX: AZS) is pleased to announce that resource infill and extension drilling at its 100%-owned Oposura project, located in Sonora Mexico (refer Figure 1), has returned further high-grade mineralisation over substantial widths. Highlights include:

Mineral Resource infill drilling in the East Zone:

• OPDH-184 5.25m @ 24.4% Zn+Pb & 34g/t Ag incl 3.05m @ 39.3% Zn+Pb & 54g/t Ag

• OPDH-185: 8.65m @ 11.4% Zn+Pb & 17g/t Ag incl 4.55m @ 19.6% Zn+Pb & 29g/t Ag

• OPDH-194: 6.00m @ 11.7% Zn+Pb & 13g/t Ag incl 2.95m @ 21.9% Zn+Pb & 23g/t Ag

Resource extension drilling into the Central Zone:

• OPDH-187 3.60m @ 15.5% Zn+Pb & 26g/t Ag incl 2.45m @ 20.5% Zn+Pb & 34g/t Ag

These latest results follow on from the previously announced near-surface, high-grade mineralisation intersected in the Central Zone and East Zone in drill holes OPDH-158 to OPDH-178 (refer ASX announcement dated 24 October 2018).

Commenting on the continued success of the ongoing drill program at Oposura, Azure’s Managing Director, Mr Tony Rovira said: “Oposura continues to deliver with exceptional drilling results. The continued success of the resource infill drilling program confirms our strong confidence in the width, grade and internal continuity of the East Zone mineralisation. This drilling will enable the Company to upgrade most of the East Zone Mineral Resource to Indicated status and, thereby, further de-risk the proposed Oposura mining operations.

“Particularly interesting is the confirmation of very high-grade, zinc-rich mineralisation in the western part of the East Zone which extends into the lightly drilled Central Zone. We are continuing to evaluate the potential of this area.”

To date, drilling in this Phase 2 program has comprised 53 holes (OPDH-158 to OPDH-210) for a total of 4,225.7m, and drilling is continuing. The Company has received assay results for 47 holes (up to and including OPDH-204). All significant results from the latest batch of drill results (OPDH179 to OPDH204) are listed in Table 1 and details of holes reported in this announcement are included in Table 2.

The East Zone resource infill drilling (refer Figure 2) is being undertaken to upgrade areas of the Mineral Resource from JORC Inferred classification to JORC Indicated classification. JORC Indicated resources can be considered for conversion to JORC Probable Reserves, and this will be undertaken as part of the Oposura Feasibility Study which is demonstrating strong progress.

Certain areas of the open pit mining inventory in Years 1 and 2 of the proposed mining schedule were identified in the Scoping Study (refer ASX announcement dated 15 October 2018) as JORC Inferred resources. The current drilling is designed to upgrade the resources in these areas to JORC Indicated status which will increase the confidence of production early in the mine life, and further de-risk what the Scoping Study has already identified as a financially robust project.

The resource extensional drilling is designed to delineate and expand a zone of very high-grade (+20% Zn+Pb) zinc-rich mineralisation located around Tunnel D (refer Figures 2 & 3) within the western part of the East Zone Mineral Resource and extending further to the west into the Central Zone.

Drill hole OPDH-187 provides the latest extensional drilling results from this area:

• OPDH-187: 3.60m @ 15.5% Zn+Pb from 108.45m

This latest intersection follows on from the previously announced results from this high-grade zone (refer ASX announcement dated 24 October 2018) which included:

• OPDH-159: 4.80m @ 19.3% Zn+Pb & 122g/t Ag from 107.05m

• OPDH-163: 4.15m @ 25.8% Zn+Pb & 148g/t Ag from 97.40m

• OPDH-165: 2.90m @ 21.1% Zn+Pb & 148g/t Ag from 95.90m

• OPDH-166: 6.95m @ 38.7% Zn+Pb & 365g/t Ag from 68.15m

• OPDH-171: 4.40m @ 20.4% Zn+Pb & 294g/t Ag from 99.05m

• OPDH-177: 4.55m @ 36.9% Zn+Pb & 138g/t Ag from 107.55m

This high-grade mineralised zone remains open to the west as shown in the section in Figure 3, with the nearest drill holes in the Central Zone located approximately 250m to the west of OPDH-187 (refer ASX announcement dated 24 October 2018):

• OPDH-173: 4.10m @ 12.5% Zn+Pb and 43g/t Ag

• OPDH-178: 9.50m @ 18.9% Zn+Pb and 22g/t Ag

Azure is undertaking further work to assess the potential for early development of this mineralisation.

Drilling will continue into 2019 with the final East Zone resource infill holes expected to be completed by the end of the year and additional resource extensional holes in the Central Zone currently being planned. Also, several drill holes have been designed as “condemnation” or “sterilisation” holes to be drilled within the footprints of the proposed processing plant site and the Tailings Storage Facility.

Figure 1: Plan of Mexico showing location of Oposura Project and Azure Minerals’ other projects

Figure 2: Plan of the Oposura East Zone showing locations of Phase 2 drill holes

Figure 3: Cross Section through the Tunnel D High Grade Zone

TABLE 1: Significant mineralised drill intercepts for holes reported (OPDH-179 to OPDH-204)

Table 2: Location data for holes drilled (OPDH-179 to OPDH-209)

-ENDS-

For enquiries, please contact:

or visit www.azureminerals.com.au

Competent Person Statements:

Information in this report that relates to Exploration Results for the Oposura Project is based on information compiled by Mr Tony Rovira, who is a Member of The Australasian Institute of Mining and Metallurgy and fairly represents this information. Mr Rovira has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Rovira is a full-time employee and Managing Director of Azure Minerals Limited and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Information in this report that relates to previously reported Exploration Results has been crossed-referenced in this report to the date that it was reported to ASX. Azure Minerals Limited confirms that it is not aware of any new information or data that materially affects information included in the relevant market announcements.

Information in this report that relates to Mineral Resources for the Oposura Project is extracted from the report “Azure Delivers Robust Initial Mineral Resource at Oposura” created and released to the ASX on 4 July 2018 and is available to view on www.asx.com.au. Azure Minerals Limited confirms that it is not aware of any new information or data that materially affects information included in the relevant market announcement, and that all material assumptions and technical parameters underpinning the estimates in the announcement continue to apply and have not materially changed.

Information in this report that relates to the Scoping Study for the Oposura Project is extracted from the report “Oposura Scoping Study Delivers Outstanding Economics” created and released to the ASX on 15 October 2018 and is available to view on www.asx.com.au. Azure Minerals Limited confirms that it is not aware of any new information or data that materially affects information included in the relevant market announcement, and that all material assumptions and technical parameters underpinning the estimates in the announcement continue to apply and have not materially changed.

Original Article: http://azureminerals.com.au/wp-content/uploads/2018/12/181211.pdf