PROJECTS IN MEXICO

ALACRÁN (100% Azure: silver-gold-copper) & OPOSURA (100% Azure: zinc-lead-silver)

• Due to the serious COVID-19 pandemic situation in Mexico, restarting field work was delayed until early July with low-key and low-cost surface exploration now underway on the Alacrán project
• Work is focused on expanding the Mina San Simon silver and gold prospect and the Gregors copper discovery in preparation for drilling later in the year

PROJECTS IN AUSTRALIA

Post the quarter end, Azure reached agreement to acquire 70% ownership of three gold projects and 60% ownership of a nickel-copper project from Mark Creasy and the Creasy Group

ANDOVER NICKEL-COPPER PROJECT: (60% Azure / 40% Creasy Group)

• Creasy Group drilling intersected high-grade nickel and copper sulphide mineralisation hosted in a layered mafic-ultramafic intrusive complex; including:
  • ADRC002: 7m @ 2.62% Ni & 0.65% Cu within 26m @ 1.03% Ni & 0.46% Cu from 43m
  • ADRC006: 2m @ 2.10% Ni & 0.44% Cu from 15m
  • ADRC001: 4m @ 1.10% Ni & 0.80% Cu from 6m; 2m @ 1.77% Ni & 0.53% Cu from 62m

TURNER RIVER GOLD PROJECT: (70% Azure / 30% Creasy Group)

• Unexplored 450km2 project located close to De Grey Mining’s (ASX:DEG) Mallina project which hosts resources of 2.2Moz gold and the new Hemi gold discovery
• Turner River hosts 12 kilometres of the fertile Berghaus Shear Zone on trend from Hemi

MEENTHEENA AND COONGAN GOLD PROJECTS: (70% Azure / 30% Creasy Group)

• Meentheena drilled for epithermal gold mineralisation – explored by Creasy Group since 1994
• Coongan adjoins Novo Resources’ Beatons Creek conglomerate-alluvial gold project

CORPORATE

Post the quarter end, Azure reached agreement to raise $4M (before costs) via a share placement to institutional and sophisticated investors to support exploration activities on these new West Australian projects and to continue exploration on its Mexican projects.

MEXICO

Due to the seriousness of the COVID-19 pandemic situation in Mexico, Azure suspended all field activities for four months. During this period, Azure designed and implemented strict health, safety and hygiene standards at the Company’s office in Hermosillo and in the field, to minimise infection risks amongst its employees, contractors and members of local communities. The Company also used the isolation period to carry out detailed data analysis and interpretation to evaluate and prioritise targets for further testing.

Field work resumed in early July with surface exploration following up silver, gold and copper targets identified on the Alacrán project. Priority areas worked were extensions of silver and gold mineralisation at Mina San Simon where drilling near old mine workings returned 21m @ 2.0g/t Au & 64g/t Ag (in MDPC-168) and the exciting new Gregors copper discovery where drilling intersected (ASX: 23 March 2020):

• GGC-002: 30m @ 0.68% Cu from 22.5m; including 6.0m @ 2.30% Cu
• GGC-003: 18m @ 0.96% Cu from 21.0m; including 1.5m @ 7.03% Cu

AUSTRALIA

Subsequent to the end of the quarter, Azure announced (ASX: 17 July 2020) that it has entered into two Tenement Sale and Exploration Joint Venture Agreements with entities controlled by prominent mining prospector Mr Mark Creasy (“Creasy Group”); one to acquire a 60% interest in the Andover nickel-copper project and another to acquire 70% interests in the Turner River, Meentheena and Coongan Gold Projects, located in the Pilbara region of Western Australia (see Figure 1).

Post shareholder approval of this transaction, the Creasy Group will emerge as Azure’s largest shareholder with a 19.1% interest.

Figure 1: Locations of Azure’s new Pilbara projects

Andover Nickel-Copper Project

The Andover Nickel-Copper Project hosts nickel and copper sulphide mineralisation discovered by the Creasy Group in 2018 (refer Azure’s ASX announcement: 17 July 2020). Three holes intersected significant nickel and copper sulphide mineralisation at shallow depths in two separate targets, returning:

ADRC002: 7m @ 2.62% Ni & 0.65% Cu within 26m @ 1.03% Ni & 0.46% Cu from 43m

ADRC006: 2m @ 2.10% Ni & 0.44% Cu from 15m

ADRC001: 4m @ 1.10% Ni & 0.80% Cu from 6m and 2m @ 1.77% Ni & 0.53% Cu from 62m

The 70km² project covers most of the Andover Mafic-Ultramafic Intrusive Complex with historical exploration identifying nickel, copper, cobalt, platinum and palladium mineralisation. Being a layered mafic-ultramafic intrusion, Andover contains similar geology to the Fraser Range Province (host to the Nova-Bollinger nickel-copper mine and Legend Mining’s Mawson nickel-copper discovery) and the Julimar Intrusive Complex (host to Chalice Gold Mine’s Gonneville nickel-copper-PGE discovery).

The Creasy Group has undertaken airborne and ground electromagnetic (EM) surveys, surface mapping and sampling, and Reverse Circulation (RC) drilling on the Andover property. Numerous bedrock-hosted EM conductors were detected together with outcropping gossans containing strongly anomalous values of nickel, copper and cobalt.

Seven RC drill holes tested four targets and three holes (ADRC001, 002 & 006) intersected semi-massive, stringer and disseminated nickel and copper sulphide mineralisation with potentially economic grades and widths in two separate locations (see Figure 2). Follow-up down-hole EM surveys confirmed the presence of strong off-hole conductors in all of these holes, indicating potential for extensive sulphide mineralisation both down-dip and along-strike.

Azure is planning a diamond drilling program to follow-up these nickel-copper occurrences and to drill the numerous other geophysical and geological targets that remain untested throughout the 70km² property. Drilling is planned to commence as soon as possible following the shareholder meeting scheduled for 26 August 2020.

Figure 2: Andover mafic-ultramafic intrusive complex with drill hole collar locations

Turner River Gold Project

The Turner River Gold Project comprises two Exploration Licence applications covering 450km² located just south of Port Hedland (see Figure 3). The property is mostly sand-covered and there are no indications of drilling or other historical exploration within the project area.

Figure 3: Turner River Gold Project showing geology, structural setting & gold deposits/occurrences

Turner River contains Mallina Formation sediments and granite intrusions as are found on De Grey Mining’s nearby Mallina Gold Project, which hosts 2.2Moz of gold resources and the recent Hemi gold discovery. De Grey’s exploration has confirmed that substantial gold deposits are associated with the confluence of granite intrusions into the Mallina sediments and regionally extensive cross-cutting shear zones like the Berghaus Shear Zone.

Importantly, approximately 12 kilometres of the fertile Berghaus Shear Zone, which is associated with Hemi and the nearby Mt Berghaus (De Grey) and Cookes Hill (Haoma Mining) gold deposits, cuts through the south-eastern part of the Turner River project area. This shear corridor crosses both Mallina sediments and the Louden greenstone volcanic belt, making this area a priority exploration target for both intrusive- related and shear-hosted gold deposits.

The extensive sand cover, minimal historical exploration, proximity to De Grey’s strongly mineralised project area and gold deposits, favourable rock types and fertile structural setting all highlight the strong potential for Turner River to host substantial gold mineralisation.

Azure will undertake geophysical surveys and reconnaissance drilling within this unexplored project as soon as the tenements are granted.

Meentheena and Coongan Gold Projects

The Meentheena and Coongan gold exploration projects are located in the eastern Pilbara. Meentheena is located approximately 80km east of Marble Bar with easy access via the sealed Marble Bar to Telfer Gold Mine road and Coongan is located 8km to the west of Nullagine (see Figure 1).

Meentheena covers 223km² and the project area has been explored by the Creasy Group for more than

25 years. It is considered prospective for epithermal-style gold mineralisation and Creasy Group exploration has identified strongly anomalous gold and silver values and high levels of the pathfinder minerals arsenic, antimony and mercury associated with silica flooding, quartz and sulphide veining, and crackle breccias indicative of an epithermal event.

The Creasy Group drill-tested this zone with five RC holes totalling 2,204m and one 706m diamond core hole. Several holes intersected epithermal-style alteration, veining and brecciation with anomalous precious metals and pathfinder elements. Azure plans to undertake further exploration, initially comprising surface studies followed by drilling.

Coogan covers an area of 141km². It is situated immediately west of Nullagine and adjoins the western boundary of Novo Resources’ Beatons Creek Conglomerate Gold Project (current resources of 903,000oz @ 2.53g/t Au in conglomerate, alluvial and reef gold). Until recently a joint venture with Creasy related entities, Novo announced (15 June 2020) that it had consolidated sole ownership of the Beatons Creek project by acquiring the Creasy Group interests.

There are numerous mineral occurrences and deposits reported in the immediate vicinity of Coongan, including gold to the northwest and east, copper to the north, Channel Iron Deposits (CID) to the south and tin, tantalum and lithium to the east. The project is considered prospective for alluvial and conglomerate-hosted gold similar to that at Beatons Creek and also bedrock-hosted primary gold mineralisation.

Exploration undertaken by the Creasy Group focused on the western half of the project area and comprised surface geochemical sampling (stream sediment and rock chip) and a close-spaced detailed aeromagnetic survey. Numerous target areas were identified that warrant follow-up with infill stream sediment sampling, soil sampling, detailed rock chip sampling and geological mapping. In addition, the eastern half of the property requires similar reconnaissance exploration and an aeromagnetic survey. Next stage exploration programs are being planned and will be executed in the coming tenement year.

CORPORATE

Project Acquisition

Subsequent to the end of the quarter, Azure entered into Tenement Sale and Exploration Joint Venture Agreements (“Agreements”) with Mark Creasy and the Creasy Group to acquire:

• a 60% interest in the Andover Nickel-Copper Project with the Creasy Group retaining a 40% interest, and
• 70% interests in the Turner River, Meentheena and Coongan Gold Projects with the Creasy Group retaining 30% interests in each project.

Total consideration and terms for this acquisition are:

• Azure will issue 40,000,000 Azure shares to the Creasy Group; and
• Azure will sole-fund exploration and free-carry the Creasy Group’s interests under both agreements through to execution of a Mining Venture Agreement including the completion of any bankable feasibility studies.

The Agreements are subject to shareholder approval. Shareholders of Azure will be asked to approve the Agreements at a meeting which is scheduled to be held on 26 August 2020.

Following shareholder approval and issuance of the shares, Creasy Group’s holding in Azure will increase to approximately 19.1%, from its current 3.0% holding.

Placement

The Company received binding commitments from professional and sophisticated investors to raise gross proceeds of A$4 million by way of a share placement. Proceeds of the Placement will be used to fund initial exploration at these new gold and nickel projects, fund ongoing exploration at the Alacrán silver, gold and copper project in Mexico, for working capital, and to pay costs of the capital raising.

Canaccord Genuity (Australia) Limited acted as Sole Lead Manager to the Placement.

Under the Placement, a total of 40.0 million shares will be issued at a price of $0.10 per share. This represents a 7.0% discount to the 15 day volume weighted average price (VWAP) of the Company’s shares and a 2.1% premium to the 30 day VWAP on the days which trades were recorded leading up to this announcement.

The issue of 23,000,000 shares for $2.3 million was completed on 24 July 2020. The balance of 17,000,000 shares for $1.7 million will be issued to the Company’s largest shareholder Deutsche Balaton Aktiengesellschaft (“DBA”) and is subject to shareholder approval at a meeting to be held on 26 August 2020.

Other

During the quarter the company expensed some $300,000 on the exploration activities reported above.

Payments to related parties of the entity and their associates totalled $81,000 and consisted of Executive Service fees.

No mining concessions were acquired or relinquished during the quarter. Cash balance at 30 June 2020 was approximately A$0.85 million.

Authorised for release by Brett Dickson, Company Secretary

-ENDS-

For enquiries, please contact:

or visit www.azureminerals.com.au

Competent Person Statements: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 announcements.

Original Article: https://azureminerals.com.au/wp-content/uploads/2020/07/200730.pdf