KEY POINTS:

• Strong and coincident gold and cobalt anomaliesidentified by soil sampling
• Close association of gold and cobalt mineralisation with strongly magnetic skarn confirmed by magnetic surveys
• A second, separate high-grade zinc anomaly identified by soil sampling
• Follow-up drilling at Sara Alicia is in preparation

Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to advise that results from a recent close-spaced soil sampling program have identified areas of strong gold, cobalt and zinc anomalism across the Sara Alicia property. Additionally, a ground magnetic survey has defined the highly magnetic zone which represents the skarn body hosting the high-grade gold and cobalt mineralisation.

Soil samples were collected on a 25m x 50m grid spacing, which has defined a discrete zone strongly anomalous in gold and cobalt, with highest values of 1.26g/t gold and 1,469ppm cobalt (0.15% Co), both very high values for soil samples. The anomalies for both elements are coincident, are approximately 200m long and 100m wide, and align along the eastern flank of a well-defined northwest-southeast trending structural zone. Geological mapping indicates that the western flank of this structural break is down-faulted, suggesting the potential for buried repetitions of the mineralised body at depth.

The western flank also hosts a very high-grade zinc-in-soil anomaly in the southwestern quadrant of the project area. All 26 samplesfrom within the 200m x 100m anomalous area returned assays exceeding 1,000ppm Zn (>0.1% Zn) up to a maximum value of 35,400ppm Zn (3.54% Zn), with an overall average zinc grade of 0.45% Zn. This very strong zinc anomaly is hosted in a different geological setting from the gold and cobalt mineralised skarn, providing Azure with another target horizon to follow-up.

Results of the ground magnetic survey and magnetic susceptibility measurements of the drill core from Azure’s first drilling program have confirmed the close spatial association of the strongly magnetic skarn body with high-grade gold and cobalt mineralisation.

The surface dimensions of the magnetic anomaly are similar in area to the gold and cobalt anomalies identified by the soil sampling. Encouragingly, modelling of the data indicates that the magnetic body which represents the mineralisation has considerable depth extent, particularly to the north and northeast where it dips beneath an overlying limestone horizon, providing excellent targets to extend the gold and cobalt mineralisation in those directions.

Images showing distribution of gold, cobalt and zinc from the soil sampling survey and results of the ground magnetic survey are shown in Figures 1 to 4.

Azure is currently designing a drilling program to follow-up these positive results by testing for along-strike and down-dip extensions and the depth potential of the high-grade gold and cobalt mineralisation. Preparation of the required environmental applications is in progress.