Mexican-focused Azure Minerals Limited (“Azure” or “the Company”) is pleased to advise that the Company is now in receipt of all assay results from the latest drilling program at its Promontorio Project, located in the Mexican state of Chihuahua.

Results include a 70.0 metre intersection of strong copper mineralisation at Cascada, Azure’s largest copper intercept in Mexico, with additional good copper intersections at a newly identified prospect Risco Dorado.

HIGHLIGHTS

·        0.0m @ 2.7% Copper Equivalent (CuEq1) at Cascada – 200m

northwest of Promontorio – (see Figures 1 & 2)

Including:

o   35.9m @ 4.8%  CuEq

which also includes

o   11.25m @ 10.5% CuEq

·        Significant copper intersection also made at the newly identified Risco Dorado – 600m northwest of Promontorio – (see Figure 1)

·        Promontorio drilling delivered multiple intercepts of economically significant mineralisation, confirming potential for resource expansion – (see Figure 3)

·        JORC resource update on track for early Q2 2013

Commenting on the results of the drilling program, Azure’s Managing Director, Mr Tony Rovira, said, “I’m absolutely thrilled with the results received from the latest Promontorio drilling program. Good widths of high grade copper, gold and silver mineralisation from areas untested by previous exploration confirm potential to increase the project’s resource base.

“The highlights of the drilling are the intersections we made as part of the wider exploration program. The exceptional copper intercept at Cascada is Azure’s best to date within the whole project area, and indicates strong potential for another significant body of copper mineralisation adjacent to Promontorio.

Furthermore, drill intercepts at the newly named Risco Dorado (Golden Cliff) prospect are promising and augur well for further exploration successes in that area.

These exploration results add considerably to the overall potential of our project.”

DETAILS

A total of 33 diamond core holes were drilled for 3,588 metres. Thirty one holes were drilled as part of the resource expansion program at the Promontorio deposit, with the final two holes drilled as part of a wider exploration program to test the Cascada and Risco Dorado prospects. See Figure 1 for locations.

Figure 1: Promontorio Project Area

Assay results from all outstanding drill holes, APR-DD-071 to APR-DD-087, have now been received. Drill intercepts for the entire program are contained in Tables 1A, B & C and drill hole collar data is detailed in Table 2.

Cascada

The final hole of Azure’s program (APR-DD-087) was drilled into the Cascada prospect, located about 200 metres northwest of the Promontorio deposit. Earlier exploration in this area had predominantly focused on testing for gold and silver and had ignored the copper potential.

Azure’s drill hole was designed to follow up an historical hole that returned moderate gold grades, and to test for copper potential at depth. In the first 40 metres of the hole, two zones returned gold intersections of 6.95m @ 0.6g/t and 12.0m @ 1.1g/t with a highest grade of 3.6g/t Au. 

At a depth of 41.9 metres, the hole entered a zone of copper sulphide mineralisation in vuggy silica veins and silicified volcanics. This zone extends over a downhole length of 70 metres and hosts disseminated, veined and massive copper sulphide mineralisation in amounts varying from minor to abundant throughout the entire 70 metre mineralised interval. (See Figure 2 for photographs of high grade core).

Overall, this zone returned the following mineralised intercepts at various cut-off grades:

·        (@ 0.2% Cu cut-off grade)

70.0m @ 2.7% CuEq (1.6% Cu, 0.9g/t Au & 35g/t Ag) from 41.9m

·        (@ 0.5% Cu cut-off grade)

35.9m @ 4.8% CuEq (2.9% Cu, 1.5g/t Au & 65g/t Ag) from 76.0m

·        (@ 1.0% Cu cut-off grade)

11.25m @ 10.5% CuEq (7.0% Cu, 2.3g/t Au & 147g/t Ag) from 80.65m

and:

7.25m @ 3.8% CuEq (2.0% Cu, 1.9g/t Au & 32g/t Ag) from 101.75m

This drill intercept is a very exciting development, and opens up the possibility of another copper deposit located within a short distance of Promontorio.

Figure 2: High grade copper intercept in APR-DD-087

Risco Dorado

Azure completed a single drill hole (APR-DD-086) on this prominent bluff, located about 600 metres northwest of Promontorio. The hole was designed to test an area where historical exploration had indicated anomalous copper, gold and silver. 

The hole intersected an 11 metre wide interval of silicified volcanic rocks containing disseminated and semi-massive pyrite and copper sulphides.

Overall, this zone returned a mineralised intercept of

·        (@ 0.5% Cu cut-off grade)

11.0m @ 2.1% CuEq (1.5% Cu, 0.4g/t Au & 29g/t Ag) from 146.7m

·        (@ 1.0% Cu cut-off grade)

2.3m @ 3.1% CuEq (2.7% Cu, 0.2g/t Au & 24g/t Ag) from 146.7m and

2.8m @ 4.2% CuEq (2.7% Cu, 0.7g/t Au & 68g/t Ag) from 151.9m

Promontorio

Results from the recent drill program have enabled an updated geological interpretation to be developed. A 3D image detailing this new geological model of the Promontorio vein system and the recent drilling is shown in Figure 3.

Holes APR-DD-071 to APR-DD-085 were designed to test extensions to known mineralised veins outside of the current mineral resource boundaries. 

The southwest and northeast extensions of the Santiago Vein, the southern extension of the Veta Grande, and the newly discovered crosscutting South Vein and San Felipe Veins were all drill tested. The targeted vein structures were intersected in most drill holes although, as typical in vein-style deposits, not all intersections encountered high grade mineralisation. 

Some of the intersected mineralisation was copper-rich while elsewhere it was gold and/or silver-rich. In places, vein structures were significantly wider than anticipated although the highest grade area sits in the core of the deposit. 

Highlights of these latest results (using a 0.5% Cu cut-off grade) are:

·        APR-DD-084 drilled through multiple mineralised structures as part of the San Felipe Veins, returning a wide intersection of:

22.6m @ 2.3% CuEq (1.4% Cu, 0.7g/t Au & 32g/t Ag) from 46.65m

·        APR-DD-073 intersected high grades in the western limb of the South Vein:

1.1m @ 8.6% CuEq (3.6% Cu, 2.4g/t Au & 250g/t Ag) from 45.1m

·        APR-DD-076 intersected a gold-rich zone (0.5g/t Au cut-off grade) in the eastern limb of the South Vein:

13.0m @ 2.7g/t Au and 18g/t Ag from 20.4m, including:

2.0m @ 11.6g/t Au and 18g/t Ag from 26.4m

Drilling at the southern end of the Veta Grande returned low grades within erratic veining. It is possible that the southern extent of the Veta Grande mineralisation may have been defined in this area, although mapping indicates that the structure continues further to the south.

Figure 3: 3D Image of Promontorio Veins and Recent Drill

FUTURE ACTIVITY

Promontorio has a current JORC Mineral Resource (Indicated + Inferred) of:

502,000 tonnes @ 4.7% Copper, 2.1 g/t Gold and 99 g/t Silver

Azure believes the positive results of the recent drilling program will lead to the estimation of an enlarged Mineral Resource, which is currently in progress and is expected to be completed by April 2013.

In addition, the Promontorio deposit remains open along strike and at depth, with the potential for further resource expansion in the future.

However the most promising developments from this drilling campaign are the results of the last two drill holes at Cascada and Risco Dorado. Azure will continue exploration at these prospects with detailed mapping and sampling followed by further drilling. The Company considers there is potential for significant increases to the project’s overall resource base upon completion of additional drilling in these locations.

Exploration is also continuing on some of Azure’s other projects, with the gravity survey nearing completion at La Tortuga and reconnaissance exploration underway at the Loreto and Los Chinos projects.

-ENDS-

For further information, please contact:

or visit www.azureminerals.com.au

APPENDIX

Competent Person Statement:

Information in this document that relates to Exploration Results and Mineral Resources 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.

Drilling and Sample Analysis Statement: 

Detailed geological logging is undertaken with recording of lithology, alteration, veining, mineralisation and mineralogy.

Samples are all HQ half core. Sampling is based upon geological boundaries with minimum sample length of 0.15m and maximum sample length of 1.0m.

Reported mineralised intersections are based on intercepts using 0.5% & 1.0% copper cut-offs and 1.0% Copper Equivalent cut-offs. Maximum internal dilution at a 0.5% copper cut-off is 2.0 metres. 

Sample preparation was undertaken by ALS-Chemex (Hermosillo) and analysed by ALS-Chemex (Vancouver) using methods ICP61 and OG62 (for silver and base metals) and Fire Assay methods AA- 23 and GRA-21 for gold. 

Certified Reference Standards and blank check samples are routinely inserted at 20m intervals and also immediately following visually identified mineralised intercepts to provide assay quality checks. Review of the standards and blanks are within acceptable limits.

Drill hole collar locations are initially surveyed by handheld GPS and definitively surveyed by differential GPS following completion of the drilling program. Downhole surveys are undertaken at 30m intervals by gyroscope.

Copper Equivalency Statement: 

Copper Equivalent (“CuEq”) represents the total value of each metal (Copper + Gold + Silver) factored by metallurgical recoveries, multiplied by the conversion factor, summed and expressed in equivalent copper percentage. 

Long Term Metals Price Assumptions:

Copper = US$3.00/lb

Gold = US$1500/oz

Silver = US$30/oz

Allowance is made for recoveries for all metals based upon metallurgical testwork and mineralogical studies undertaken by independent laboratories as part of the Promontorio Pre-Feasibility Study. This testwork demonstrates the following metal recoveries are possible into a polymetallic concentrate:

Copper = 97.9%          

Gold = 93.4%

Silver = 97.0%

In the Company’s opinion, all elements included in the metal equivalents calculation have a reasonable potential to be recovered.

Copper Equivalent Calculation Formula = Cu (%) + (Au(ppm) x 0.68) + (Ag(ppm) x 0.0134)

TABLE 1A: Significant Mineralised Drill Intercepts from Cascada

TABLE 1B: Significant Mineralised Drill Intercepts from Risco Dorado

TABLE 1C: Significant Mineralised Drill Intercepts from Promontorio

TABLE 2: Drill Hole Collar Information