Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”), the Mexican-focused minerals exploration company, is pleased to provide shareholders with an update of recent developments on two of the Company’s 100%-owned properties, La Tortuga and El Tecolote. The Company has in place farm-in agreements with the Japanese Government organisation, JOGMEC, over these projects through two separate joint ventures. Azure is free-carried for the first US$16 million of exploration expenditure.
At La Tortuga, a single diamond core hole designed to test a deep geophysical target has recently been completed. The combined results of Azure’s aeromagnetic and magneto-telluric modelling indicate the anomalies are hosted within basement rocks commencing at approximately 600m below surface and extending to depths in excess of 1,500m. After passing through the overlying post-mineral cover rocks, the drill hole entered basement rocks at 635m and drilled through 30m of promising strongly hematite-altered, veined and brecciated, intrusive rock, prior to the hole being prematurely terminated due to unstable ground conditions in the cover rocks causing drilling problems.
Geologically, the basement rock within the target zone is described as a hematite breccia. It contains strongly hematite-altered and brecciated granitic rocks with quartz-hematite veinlets. Assays have been received and contain encouraging elevated values of base metals and other pathfinder elements.
An additional highlight is a 0.75m sample grading 0.545g/t Gold from 663.0m.
Azure Managing Director, Mr Tony Rovira, commented: “Obviously, having to abandon this drill hole shortly after entering the target zone is very disappointing. However on a positive note, the fact that the hole intersected 30m of the right rock type and alteration is highly encouraging and validates the exploration model. The presence of strongly altered and veined intrusive rock suggests these large geophysical anomalies could represent a body of significant base metal mineralisation. Further drill testing of this target is definitely warranted, and we are currently discussing the next stage with JOGMEC.”
The drill rig is currently being relocated to the adjoining El Tecolote project to commence a 10 hole, 4,000m, diamond drilling program. The 178 km² El Tecolote Project contains substantial evidence of base metal mineralisation demonstrating the potential for both porphyry copper and skarn copper-zinc-silver deposits.
This drilling program will test several porphyry copper targets in addition to the mineralised extensions and repetitions around the historical El Tecolote Zinc-CopperSilver Mine. This mine historically produced 1.4 million tonnes @ 1.9% copper, 7.0% zinc and 47 g/t silver, prior to closing in 1984 due low commodity prices. Unmined copper and zinc mineralisation remains around the old mine workings.
Previous drilling returned significant mineralised intercepts on four 40 metre spaced sections. Mineralisation comprises disseminated to semi-massive sphalerite and minor disseminated chalcopyrite hosted in a skarn unit (metamorphosed limestone) up to 15 metres in true width. This is a newly identified zone which lies on a parallel trend to the ore zone at the nearby mine.
About the Company:
Azure Minerals Limited is an Australian mineral exploration company focused on developing mining projects in the richly mineralised Sierra Madre Occidental mining province in northern Mexico. Azure’s key projects are the high grade Promontorio copper-gold-silver project, the La Tortuga porphyry copper project and the El Tecolote copper-zinc project.
Exploration for porphyry copper and skarn copper-zinc deposits on Azure’s 100%- owned El Tecolote and La Tortuga properties is being undertaken in two separate joint ventures with the Japanese Government corporation JOGMEC. JOGMEC may earn a 70% interest in the El Tecolote project by spending US$13 million, with total expenditure to 30 June 2012 of US$2.2M. JOGMEC may earn a 51% interest in the La Tortuga project by spending US$3 million, with total expenditure to 30 June 2012 of US$2.1M. Azure is the operator and manager of both joint ventures.
Promontorio has a JORC Mineral Resource of 502,000 tonnes @ 4.7% Cu, 2.1g/t Au & 99g/t Ag. Azure has completed a Pre-Feasibility Study with the positive outcome confirming the technical and financial viability of the project. The next stage of development is the commencement of a Definitive Feasibility Study and additional drilling to increase the size of the Resource. Promontorio has an Exploration Target 1 of 1.0 – 2.0 million tonnes at grades of 4-5% Cu, 1.5-2.5g/t Au and 80-120g/t Ag.
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Competent Person Statement:
Information in this document 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 of Azure Minerals Limited. Mr Rovira has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Rovira consents to the inclusion in the documents of the matters based on his information in the form and context in which it appears.
