Highlights:

• Near-surface, thick, high grade gold zone identified at Loma Bonita
• Drill hole MDPD-012 intersected:
• 48.0m @ 2.68g/t Au & 32g/t Ag from 23.1m; which includes
  • 27.0m @ 4.07g/t Au & 27g/t Ag from 23.1m; including
    • 15.6m @ 5.18g/t Au & 22g/t Ag from 23.1m
• Drill hole MDPD-011 intersected:
  • 18.4m @ 1.57g/t Au & 40g/t Ag from surface
• All gold and silver mineralisation is hosted in weathered rock in the oxide zone
• Mineralised zone is over 300m long and remains open in all directions
• Drilling continues at Loma Bonita, Mesa de Plata (northeastern resource expansion) and shortly at Mesa de Plata Norte

Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to advise that on-going diamond drilling at its flagship Alacrán Project in Mexico has delivered the first significant gold intercepts, with drilling at the Loma Bonita prospect intersecting a thick zone of high grade gold mineralisation.

Azure’s Managing Director, Tony Rovira described the high grade nature of the gold intersections as highly encouraging for the Alacrán Project.

“This is very exciting, particularly as the gold grades and thicknesses appear to be increasing towards the south,” he said.

“As with previously announced gold intercepts at Loma Bonita, this mineralisation is situated near surface within oxidised rocks, which is very promising for future mining and processing operations.

“I now consider Loma Bonita to be a gold project with excellent silver credits. The high gold grades and significant widths of these intercepts augur well for the possible delineation of a significant gold deposit and are positive for the future development of the Alacrán project.

"Our dual pathways of development and exploration are delivering very positive benefits for the Company.”

Loma Bonita is located only 200m from the Mesa de Plata silver deposit where Azure recently reported a near-surface, multi-million ounce maiden JORC Mineral Resource (ASX: 9 May 2016).

All gold intercepts at Loma Bonita occur either at or very near to surface and the length of the mineralised zone has now been extended in a north-south direction to over 300m. Further drilling to test the east-west dimensions will commence shortly. Additionally, Azure will also soon be drilling the Mesa de Plata Norte silver targets where surface sampling returned high grade silver results.

DETAILS

Strong gold mineralisation occurs in holes MDPD-011 and 012 (see Figure 1 and Table 1), and is uniformly present throughout the mineralised zones in both holes. Importantly, MDPD-012 has provided the project’s first high grade gold intersection with a 27.0m wide zone returning 4.07g/t Au inside a wider interval of 48m @ 2.68g/t Au.

Holes MDPD-011 and 012 are respectively located approximately 60m and 120m south of the Loma Bonita discovery hole MDPD-007 (ASX:17 March 2016) (see Figure 3), which returned:

• 20.0m @ 1.52g/t Au & 62g/t Ag from surface, including;
• 10.7m @ 2.76g/t Au & 66g/t Ag from surface.

Hole MDPD-008, located a further 160m north of MDPD-007, returned:

• 7.5m @ 1.05g/t Au & 130g/t Ag from 2.0m; (ASX: 18 April 2016).

Similar to the earlier holes at Loma Bonita, MDPD-011 & 012 drilled siliceous hydrothermal breccias with quartz veining (see Figure 2). The intensity of the silicification, quartz veining and brecciation is strong. Weathering and oxidation is present from surface to 100m-150m downhole, with the rock being hematitic (iron oxide-rich) in this zone. Below this level, significant amounts of disseminated pyrite (iron sulphide) mineralisation are present in each hole.

Table 1: Significant gold and silver intercepts from MDPD-011 & MDPD-012

Table 2: Diamond drill hole information

-ENDS-

Information in this report that relates to Exploration Results is based on information compiled by Mr Tony Rovira, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Rovira is a full-time employee and Managing Director of Azure Minerals Limited. Mr Rovira has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Rovira 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 announcement.

Original Article and Figures: http://www.azureminerals.com.au/azs//assets/2016/05/[email protected]