Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to advise that drilling at Loma Bonita has delivered the first significant copper intercept on its flagship Alacrán Project.

Highlights:

• Diamond drill hole MDPD-016 intersects semi-massive copper sulphides, finishing in strong mineralisation:
  • 8.4m @ 0.92% Cu from 192.4m; which includes
    • 1.4m @ 2.42% Cu from 199.4m to end of hole (200.8m)
• MDPD-016 also intersected the near-surface gold-silver zone, returning:
  • 25.0m @ 0.78g/t Au & 28g/t Ag from surface; which includes
    • 11.0m @ 1.09g/t Au & 39g/t Ag from 14.0m
• Phase V drill program is underway at Loma Bonita, to be followed by drilling at Mesa de Plata Norte and on other nearby prospects
• Geophysical (Induced Polarisation) survey was completed over Mesa de Plata and Loma Bonita with data interpretation in progress

Azure’s Managing Director, Tony Rovira described the identification of semi-massive copper sulphide mineralisation as a very significant development for the Alacrán Project.

“This discovery supports our geological model that the hydrothermal breccia at Loma Bonita is part of a feeder zone within a large mineralised system that may extend to significant depths.

“The gold-silver mineralisation within the near-surface oxide zone at Loma Bonita is the highest priority for our exploration program, and drilling is continuing there in order to delineate the overall size and grade of this mineralised zone.

“Additionally we will continue to explore for precious and base metal mineralisation at depth. The first step in this process was to undertake a detailed IP survey over Mesa de Plata and Loma Bonita to seek geophysical anomalies that may represent zones of alteration and mineralisation. This survey has now been completed and we’re evaluating the data.

“Meanwhile development studies on the Mesa de Plata silver deposit are continuing with metallurgy, mineral processing, mining and environmental studies underway.”

DETAILS

This release reports on the final three diamond core holes drilled as part of the Phase IV drilling program on the Alacrán Project (see Figure 3).

• MDPD-015 tested the northeast extent of the Mesa de Plata silver deposit
• MDPD-016 was drilled to provide infill information of the Loma Bonita gold-silver mineralisation
• MDPD-017 tested a new area east of Loma Bonita where surface mapping and sampling identified potential for gold and silver mineralisation

Mineralised intersections from these holes are detailed in Table 1.

Table 1: Significant mineralised intercepts from MDPD-015, 016 & 017

Hole MDPD-016 was collared on the Loma Bonita ridge midway between holes MDPD-007 and MDPD-008, both of which intersected significant near-surface gold and silver mineralisation, including 20m @ 1.52g/t Au & 62g/t Ag and 7.5m @ 1.05g/t Au & 130g/t Ag respectively (ASX: 8 March 2016).

MDPD-016 intersected gold and silver mineralisation extending from surface to a vertical depth of 25m, grading 0.78g/t Au & 28g/t Ag, including 11m @ 1.09g/t Au & 39g/t Ag, confirming continuity of the thick, near-surface gold-silver mineralised zone in this area (see Figure 2). This mineralisation extends over a north-south extent of over 300m and is open in all directions.

The hole was continued to a final depth of 200.8m to test for additional mineralisation. At a depth of 192.4m the hole entered a zone of strong silicification hosting significant quantities of sulphide mineralisation (up to 15% total sulphide content), including various copper sulphide minerals and pyrite (see core photo in Figure 1).

The sulphide mineralisation is present in disseminated and semi-massive form over a length of 8.4m grading 0.92% Cu. The hole finished in semi-massive copper sulphides, with the final 1.4m of the hole returning a copper grade of 2.42% Cu.

The Company believes it is reasonable to expect additional similar mineralisation below the current depth of drilling. Consequently, Azure will re-enter and extend this hole to determine the thickness of the copper mineralised zone. 

Figure 1: MDPD-016 drill core showing sulphide-rich interval of 196.5m – 200.8m

Figure 2: Section through Loma Bonita gold-rich zone 

Loma Bonita is located only 200m from the Mesa de Plata silver deposit (see Figure 3) where Azure has reported a 26 million ounce silver resource (ASX: 9 May 2016). Surface mapping and drill hole logging indicates a major geological break between the sub-horizontal, stratabound silver mineralisation at Mesa de Plata and the gold, silver and base metal mineralisation hosted in hydrothermal breccia at Loma Bonita.

Hole MDPD-015 was collared to the northeast of Mesa de Plata, approximately 100m and 220m north of MDPD-013 & 014. Both of these holes intersected silver mineralisation which falls outside of the resource boundary (ASX: 9 May 2016). MDPD-015 intersected only weak silver mineralisation in the Mesa de Plata host unit before drilling into barren footwall rocks. This confirms the northeast extent of the mineralised zone in this area.

Hole MDPD-017 was collared about 550m east of hole MDPD-016 and was designed to test an area where surface sampling had identified anomalous silver and gold mineralisation in outcrop. Anomalous silver and gold mineralisation was intersected which warrants further investigation.

GEOPHYSICS

Azure recently completed a detailed Induced Polarisation (IP) survey over the northwestern part of the Alacrán Project area, including complete coverage of Mesa de Plata and Loma Bonita. This survey extends for approximately 1.5km north from the earlier IP survey area undertaken in mid- 2015 (ASX: 2 July 2015). 

This new survey comprised 15, 100m spaced lines, totalling 52 line kilometres. All data has now been delivered to the Company’s geophysical consultant and modelling and interpretation is currently in progress. Results from this survey will be released when they become available.

Figure 3: Loma Bonita – Mesa de Plata drill hole location plan

Table 2: Diamond drill hole information 

BACKGROUND

Azure acquired the rights to the Alacrán Project in December 2014 through its fully owned Mexican subsidiary Minera Piedra Azul S.A. de C.V.

Azure has signed an Agreement with Teck to acquire 100% of the property, subject to an underlying back-in right retained by Teck and a 2% NSR retained by Grupo Mexico. Teck Resources Limited is Canada’s largest diversified resource company. Grupo Mexico is Mexico’s largest and one of the world’s largest copper producers.

-ENDS-

For further information:

Information in this report that relates to Exploration Results 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 and Managing Director of Azure Minerals Limited. Mr Rovira has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Rovira consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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 announcement

Original Article: http://www.azureminerals.com.au/azs//assets/2016/06/160614-Copper-intersected-at-Loma-Bonita.pdf