ANDOVER NICKEL-COPPER PROJECT
- Fixed-loop electromagnetic (FLTEM) survey identifies the VC-07 conductor. Drilling indicates this 1,050m-long and +200m-deep body is associated with significant nickel-copper sulphide mineralisation.
- First seven (all) diamond drill holes intersect substantial nickel-copper sulphide mineralisation coincident with VC-07 conductor.
- Down hole electromagnetic (DHTEM) surveys indicate the sulphide mineralisation remains open along strike and down-dip.
- Drilling has restarted with a three-rig, 30,000m diamond drilling program focused on delineating a mineral resource within the mineralised body represented by the VC-07 conductor.
- Ten separate, high-priority FLTEM targets identified within Andover project area with drilling of the first target underway.
OTHER PROJECTS
- Aeromagnetic surveys were completed over the Coongan and Meentheena gold projects.
- Mexican exploration projects remain on care and maintenance due to the severe and deteriorating COVID-19 situation in that country.
CORPORATE
- Successful completion of oversubscribed $37.0 million placement to accelerate drilling at Andover.
- Mr. Wayne Bramwell appointed as a non-executive director.
- Annual General Meeting held on the 24 November, with all resolutions passed.
- Long-standing non-executive director Dr Wolf Martinick retired from his role at the conclusion of the Annual General Meeting.
- Major Shareholders, Deutsche Balaton Aktiengesellschaft (DBA) and DELPHI Unternehmensberatung Aktiengesellschaft (DELPHI) elected to convert the $2M convertible notes held by them into Azure shares.
- Cash balance on 31 December 2020 was $37.4 million.
The diamond drilling program consisted of seven holes for 2,509m. All seven holes intersected broad intervals containing substantial nickel-copper sulphide mineralisation and in every hole, massive sulphides coincide with electromagnetic conductors defined by surface FLTEM and DHTEM surveys. Host rocks are typical of a layered mafic-ultramafic intrusive complex with sulphide mineralisation hosted in gabbro and similar mafic rocks.
Azure’s first three drill holes (ANDD0001, 0002 and 0003) tested several near-surface, relatively small electromagnetic conductors identified by FLTEM and DHTEM surveys. Broad intervals of nickel and copper sulphide mineralisation were intersected at shallow depths in all three holes (refer ASX: 12, 16 and 27 October 2020), in the form of massive, semi-massive, matrix, blebby and disseminated pentlandite (nickel sulphide), chalcopyrite (copper sulphide) and pyrrhotite (iron sulphide).
Sulphide mineralisation intersected in these holes is associated with or bounded by narrow zones of shearing and fractures which show different orientations in the drill core. This indicates that these sulphides have been remobilised into this location, likely from a nearby primary source.
Significant Ni-Cu mineralised intersections in the first three holes include (refer ASX: 9 & 30 November 2020):
ANDD0001: 22.4m @ 1.02% Ni and 0.55% Cu from 81.6m downhole
including: 3.9m @ 2.85% Ni and 0.47% Cu from 94.5
and: 11.3m @ 1.21% Ni and 0.66% Cu from 110.0m downhole
including: 5.0m @ 2.09% Ni and 1.14% Cu from 116.0m
ANDD0002: 13.6m @ 1.19% Ni and 0.38% Cu from 104.m downhole
including: 4.6m @ 2.41% Ni and 0.48% Cu from 113.0m
ANDD0003: 7.6m @ 1.51% Nu and 0.25% Cu from 78.4m downhole
including: 4.6m @ 2.05% Ni and 0.20% Cu from 78.4m
Follow-up FLTEM surveying utilising four large (600m x 600m) loops identified a strong, laterally extensive, bedrock-hosted conductor, designated VC-07 (see Figure 2). The eastern end of the VC-07 conductor plate is modelled to start immediately beneath the first three drill holes with a strike extent of 1,050m east-west and a down-dip extent of at least 150m-200m with a steep northerly dip. The VC-07 geophysical signature is interpreted to represent the primary body of sulphide mineralisation.
ANDD0004, 0005 and 0006 targeted the VC-07 conductor at depth beneath the first three holes. All holes intersected significant nickel-copper sulphide mineralisation, including massive sulphides, coincident with the modelled locations of the conductor plate. Significant reported drill intersections (see Figure 3) include (refer ASX: 10 December 2020 & 12 January 2021):
ANDD0004: 41.9m @ 1.10% Ni and 0.57% Cu from 347.5m downhole
including: 8.5m @ 2.77% Ni and 1.04% Cu from 354.8m
ANDD0005: 18.7m @ 1.35% Ni and 0.68% Cu from 325.3m downhole
including: 6.7m @ 1.98% Ni and 0.86% Cu from 325.3m
ANDD0006: 19.2m @ 1.47% Ni and 0.41% Cu from 406.3m downhole
including: 7.0m @ 2.23% Ni and 0.63% Cu from 411.35m
Holes ANDD0004, 0005 and 0006 combine to define a vertical section through the mineralised horizon and demonstrate continuity of high-grade nickel-copper sulphide mineralisation over a down-dip extent exceeding 120m in this orientation. DHTEM surveying in these holes highlighted strong conductivity coincident with the intersected massive sulphides and modelling indicates that mineralisation remains open in all directions and particularly extends for significant distances both up-dip and down-dip from these holes.
ANDD0007 is the first along-strike step-out hole on VC-07 and targeted the modelled conductor plate 120m to the west-northwest of AND0004, 0005 & 0006. The hole intersected a downhole, 21.7m-wide interval containing multiple zones of matrix, semi-massive and massive nickel-copper sulphides along the interpreted strike and down-plunge directions, indicating continuity of mineralisation in those orientations (refer ASX: 21 December 2020). Assay results for ANDD0007 are awaited.
LOOKING FORWARD
A 30,000m diamond drilling program has commenced to define a mineral resource within the mineralised body represented by the VC-07 electromagnetic conductor.
VC-07 is interpreted to represent a continuous body of bedrock-hosted sulphide mineralisation extending east-west over a 1,050m strike length. The mineralised zone dips at -60o to -80o to the north with a downdip extent of more than 200m (as modelled by DHTEM surveying) and remains open to depth.
These dimensions highlight the potential of this body to represent a substantial nickel-copper sulphide deposit and the drilling program planned for 2021 is focused on progressing the delineation of this mineralised system to JORC mineral resource standard. Initial drilling will define the along-strike and depth extents of the mineralisation, followed by close-spaced in-fill drilling to assess internal continuity and variability. This program will comprise approximately 30,000m of diamond core drilling and planned drill hole locations for the first phase are shown in (see Figure 4).
AUSTRALIA – Meentheena and Coongan Gold Projects (Azure 70% / Creasy Group 30%)
During the quarter, aeromagnetic surveys were completed over the Coongan (approximately 3,363 line kilometers) and Meentheena (approximately 2,752 line kilometres) gold projects. Interpretation of the results is underway and expected to be completed during the first quarter of 2021.
MEXICO
The COVID-19 situation in Mexico continues to deteriorate and with the health and safety of employees and contractors of paramount importance, Azure has placed all projects on care and maintenance until the situation improves.
CORPORATE
Completion of $37.0 Million Placement
Azure received binding commitments from new and existing institutional and sophisticated investors to raise $37.0 million (before costs) through the issue of 50,000,000 fully paid ordinary shares (Shares) at an issue price of $0.74 per Share, representing a 5.9% discount to the 10 -day volume weighted average price (VWAP) and a 26.3% premium to the 30-day VWAP of Azure’s shares. 26,000,000 shares were issued under the Company’s existing 15% placement capacity in accordance with Listing Rule 7.1 and 24,000,000 shares were issued under Listing Rule 7.1A. The Shares issued under the Placement rank equally with Azure’s existing Shares quoted on the ASX.
Euroz Hartleys acted as Sole Lead Manager to the Placement.
It is the current intention of the Company to use the funds raised as set out below. Azure’s priority will be to undertake a substantial diamond drilling program to determine the scale of the nickel and copper sulphide mineralisation associated with the VC-07 EM conductor. Early stage environmental, hydrological and flora and fauna studies will also commence. In addition, exploration will also be initiated at the Company’s Pilbara gold projects, including Turner River once the relevant tenements are granted. The Company’s additional cash on hand of approximately $3 million (at the time of the capital raising) will be allocated to the Company’s other projects, including the Alacrán silver-gold project in Mexico.
Table 1: Use of Funds
Director Appointment
Mr. Wayne Bramwell was appointed as a non-executive director of the Company on 14 October 2020. Mr Bramwell (BSc (Extractive Metallurgy), Grad Dip Bus, MSc (Min. Econ), GAICD) is a metallurgist with over 29 years of International and Australian project evaluation, development and operations expertise across the base metals, precious metals, and bulk commodity sectors. He is currently the Group Business Manager for the Creasy Group and a non-executive director of ASX listed gold producer Westgold Resources Limited.
Dr Wolf Martinick advised that he would not seek re-election as a non-executive director of the Company at the Annual General Meeting and retired at the conclusion of the meeting.
Annual General Meeting
The Azure Annual General Meeting was held on the 24 November, with all resolutions passed.
Conversion of Convertible Notes
Deutsche Balaton Aktiengesellschaft (DBA) and DELPHI Unternehmensberatung Aktiengesellschaft (DELPHI) elected to convert the $1M convertible note debt held by each into Azure shares. The effect of the Conversion Notice was that Azure would not repay the $2 million in cash but rather, issue fully-paid shares in accordance with the following formula:
Number of shares to be issued = principal amount being converted
$0.145
DBA and DELPHI each received 6,896,552 shares, or 13,793,104 in total. Interest payments of $53,767 were made by Azure to each of these parties. DBA now holds approximately 8.3% and DELPHI 9.9% of Azure’s issued share capital.
Cash balance
The Company’s cash balance on 31 December 2020 was A$37.4 million.
OTHER
During the quarter, the company expensed some $1,956,000 on the exploration activities reported above.
Payments to related parties of the entity and their associates totaled $189,000 and consisted of Executive Service fees of $109,000 and Director’s fees of $80,000.
Refer to Table 2 below for details of tenements acquired or relinquished during the quarter.
Table 2: Details of tenements acquired and relinquished during the quarter
Authorised for release by Mr Brett Dickson, Company Secretary.
-ENDS-
For enquiries, please contact:
Tony Rovira
Managing Director
Azure Minerals Limited
Ph: +61 8 9481 2555
Media & Investor Relations
Michael Weir / Cameron Gilenko
Citadel-MAGNUS
Ph: +61 8 6160 4903
or visit www.azureminerals.com.au
COMPETENT PERSON STATEMENT
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/2021/01/210129.pdf
