HIGHLIGHTS:

• More near-surface, high-grade zinc & lead mineralisation intersected in the East Zone, including:
  • OPDH-036 2.0m @ 42.6% Zn+Pb from 37.5m
  • OPDH-023 2.9m @ 16.1% Zn+Pb from 18.9m
  • OPDH-025 2.1m @ 15.4% Zn+Pb from 27.9m
  • OPDH-026 2.2m @ 14.2% Zn+Pb from 15.2m
• OPDH-036 has extended the high-grade mineralisation south of the previously reported hole OPDH-008 (16.6m @ 22.0% Zn+Pb including 9.3m @ 36.9% Zn+Pb)
• Mineralisation extended 170 metres to the west of surface outcrop by drill hole OPDH027 (2.65m @ 10.4% Zn+Pb), the mineralised horizon remains open in that direction
• Drilling with three drill rigs is proceeding smoothly on both the East and West Zones and further assay results are expected in the near future
• Azure remains on track to deliver an initial mineral resource estimate by April 2018

Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to report additional nearsurface, high-grade zinc and lead drill results have extended the mineralisation previously reported on its flagship Oposura Project (“Oposura”), located in the northern Mexican state of Sonora (see Figure 1).

Commenting on the drilling campaign, Azure’s Managing Director, Mr Tony Rovira said, “The latest results from the Oposura East Zone continue to be encouraging, with high grade zinc and lead mineralisation being consistently intersected, confirming the continuity of the near to surface, massive sulphide mineralised horizon. While drilling initially focused on the East Zone, drilling is now being conducted concurrently in both the East and West Zones, and results continue to be regularly received.

“The resource drill-out is proceeding smoothly and is on time to be completed in February, enabling a maiden mineral resource estimate to be released by April 2018. Further drilling to test possible resource extensions and additional exploration potential is in planning.”

DRILLING DETAILS

By the conclusion of 2017, Azure’s first drilling campaign at Oposura had completed 72 diamond drill holes for 4,424m, the majority of which were focused on the Oposura East Zone (see Figures 3 & 4). Following the end-of-year break, drilling has recommenced and is now being undertaken concurrently on both the East and West Zones and further results are expected to be reported shortly.

The latest round of drill results has extended the high-grade mineralised zone to the south and west of previously reported near-surface, high-grade mineralisation in the East Zone (refer ASX announcement of 13 December 2017). Drill hole OPDH-008 intersected 16.62m at 14.09% Zn and 7.95% Pb including 9.32m at 23.89% Zn and 13.03% Pb. Drill holes OPDH-036, OPDH-023 and OPDH-026 have extended this flatlying, near-surface, high-grade mineralisation approximately 100m to the south of drill hole OPDH-008. Mineralised intervals include:

• OPDH-036: 2.05m at 21.33% Zn and 21.23% Pb from 37.5 metres
• OPDH-023: 2.90m at 9.68% Zn and 6.45% Pb from 18.9 metres
• OPDH-026: 2.15m at 8.73% Zn and 5.47% Pb from 15.2 metres

Mineralisation remains open to the south and west of OPDH-036, OPDH-023 and OPDH-026 and further drilling is planned for this area.

Encouragingly, OPDH-027, which tested a part of the East Zone where no historical drilling occurred, intersected flat-lying, high-grade mineralisation including an interval of 2.65m at 9.53% Zn and 0.87 % Pb from 80.10 metres downhole. This mineralisation is located approximately 20m to the north of and at the same level as the massive sulphide zone observed in the historical Tunnel D, as shown in Figure 4, confirming continuity of mineralisation in this area.

Most of Azure’s holes along the eastern part of the deposit have intersected fresh, unoxidized, massive sulphides within 10m of surface. This is consistent with sampling of near surface mineralisation in the historical underground workings and augurs well for an initial open pit mining operation in this area.

Historically, more than 100 diamond core holes were drilled by previous explorers at Oposura, with the majority intersecting significant zinc and lead mineralisation. Azure’s resource drill-out coincides with the previously drilled mineralised zone, and many of the Company’s holes are either “twinning” or are being drilled close to historical holes. To date, Azure has observed that its drill holes closely replicate the sulphide intercepts achieved in the historical holes, which provides confidence that a substantial resource will be confirmed.

The Company is aiming to conclude the resource drill-out in February 2018 and to complete the Company’s maiden mineral resource estimate by April 2018. Once the current resource drill-out program is complete, drilling will continue to expand the area of currently defined mineralisation and, ultimately, the resource, and to explore for repetitions and extensions of the mineralised zones elsewhere within the property.

Figure 1: Location of Azure Minerals’ projects

Figure 2: Mineral resource drill-out area and further exploration potential of Oposura Project

Figure 3: Oposura drill hole locations and geology

Figure 4: Oposura East Zone drill hole locations and section A-AA location

Figure 5: Oposura East Zone section A-AA

TABLE 1: Significant mineralised drill intercepts

¹ Denotes assay result has changed since the previous announcement with the inclusion of over-limit assay results

² Denotes results that were not included in the previous announcement

Table 2: Location data for Azure Minerals’ holes drilled to date on the Oposura Project

-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.

Original Article: http://azureminerals.com.au/wp-content/uploads/2018/01/20180116.pdf