HIGHLIGHTS:

• High-grade silver & gold mineralisation discovered on Azure’s new, 100%-owned 1,275-hectare Oso Negro property, located 70km north of the Company’s flagship Oposura zinc-lead project

• Multiple epithermal quartz veins extending up to 800m long host numerous old mine workings

• Impressive assays received from Azure’s early sampling programs, including:

• Azure’s exploration continues to identify additional outcropping quartz veins

Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to report that high grade silver and gold assays have been returned from surface sampling of its recently acquired, 100%-owned Oso Negro project, located in the northern Mexican state of Sonora (see Figure 1).

Sampling of extensive zones of epithermal quartz veining delivered very high grades of silver (up to 2,680g/t Ag), gold (up to 100.5g/t Au), zinc (up to 10.4% Zn) & lead (up to 6.0% Pb).

Commenting on these encouraging results, Azure Minerals’ Managing Director, Mr Tony Rovira said; “Oso Negro is located in northern Sonora in a district where mining and exploration activities, both historical and modern, are widespread. However, despite the property being an old mining centre with extensive mine workings probably dating from the late 1800s, there is no evidence of drilling or other modern exploration activities. Most of the project area was unclaimed vacant ground which Azure has staked.

“While the Company’s focus is on progressing our Oposura zinc-lead project through development studies, we continue to seek new opportunities like Oso Negro where significant value can be added quickly.

“Oso Negro is an exciting prospect missed by other exploration companies and is another example of the bountiful and often under-exploited mineral potential of northern Mexico. By continuing our proactive approach to identifying and acquiring under-valued exploration projects, the Company is expanding our diversified portfolio of high-quality, early-stage and advanced precious and base metal projects.”

Oso Negro was identified and acquired through Azure’s ongoing program of regional reconnaissance and project generation. The property covers a total of 1,275 hectares and comprises a 1,119ha concession application (Oso Negro) staked by Azure and an adjoining 156ha concession (El Sahuaro) which was purchased from a local rancher for approximately US$35,000. The Oso Negro property is located about 70km north of the Company’s flagship development project, Oposura (see Figure 1).

Figure 1: Oso Negro project location

Both Oso Negro concessions contain epithermal mineralisation exposed as outcropping quartz veins and stockworks of quartz hosted in zones of strong alteration (see Photos 1 & 2).

Iron oxides after sulphides and semi-fresh sulphides comprising galena (lead sulphide) and sphalerite (zinc sulphide) occur within the quartz veins. Veins ranging up to five metres in width are exposed over strike lengths of up to 800m. Artisanal underground mine workings exist along the veins to varying depths to a maximum of approximately 30m, suggesting depth potential. Numerous old mine dumps comprising quartz vein material containing high grades of silver and gold mineralisation are present.

Azure collected 88 samples during the prospecting phase and strongly anomalous to high grade silver, gold, zinc and lead assays were returned from many of the samples, as shown in Figures 2 to 5 and detailed in Table 1. Most samples were channel samples taken across veins, host rock selvages and from within hand-dug channels across the old mine dumps. Of the 88 samples collected:

• 37 samples assayed >100g/t Ag, including 9 samples >1,000g/t Ag to a maximum of 2,680g/t Ag

• 37 samples assayed >1.0g/t Au, including 7 samples >5.0g/t Au with a highest grade of 100.5g/t Au

Azure is currently carrying out additional mapping and sampling on the property to identify prospective targets suitable for follow-up testing by trenching and/or drilling. Since most of the quartz veining is anomalous in silver and gold, exploration will focus on locating zones with sufficient density and strike continuity of veining to host a significant deposit.

Photo 1: Ore dumps from historical mining activities

Photo 2: Geologist inspecting wall rock alteration surrounding epithermal quartz veins

Figure 2: Image of silver results from surface sampling at Oso Negro, overlying Google Earth image

Figure 3: Image of gold results from surface sampling at Oso Negro, overlying Google Earth image

Figure 4: Silver & gold results from surface sampling at Oso Negro (northwest zone)

Figure 5: Silver & gold results from surface sampling at Oso Negro (southeast zone)

TABLE 1: DETAILS OF SURFACE SAMPLING AT OSO NEGRO *

* Table 1 note: Highlighted cells refer to silver grades >100g/t Ag, gold grades >1.0g/t Au, zinc grades >1.0% Zn & lead grades >1.0% Pb

-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 Oso Negro 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/2018/09/180905.pdf