Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to provide an update on recent exploration activities from the Alacrán Copper Project, located in the northern Mexican state of Sonora.
Key Points:
Strong progress identifies targets at La Morita and San Simon for a diamond drill program scheduled for mid-2015
LiDAR airborne survey for aerial photographs and digital terrain model completed
Aeromagnetic survey data acquired and reprocessed
Induced Polarisation survey covering La Morita and San Simon prospects commenced
Mapping and sampling in and around old mine workings continues
Diamond drilling scheduled for mid-year following evaluation of results from current exploration activities
Azure’s Managing Director, Tony Rovira, stated: “We are very pleased with current progress at Alacrán. Through our on-ground exploration activities and the ongoing historical research and data recovery programs, we’re building a comprehensive picture of the potential of this project – and it’s looking good.
“I’ve previously described Alacrán as the best under-explored copper project in Mexico, and so far we’ve not been disappointed. Recent exploration results and the programs currently underway are expected to deliver us high quality targets which we will test with diamond drilling as soon as possible.”
EXPLORATION ACTIVITIES
LiDAR Survey
An airborne survey using the LiDAR system to produce a Digital Terrain Model (DTM) and aerial photographs covering the Alacrán project area has been successfully completed, and high definition images and the DTM are expected to be delivered shortly.
LiDAR, which stands for Light Detection and Ranging, is a remote sensing method that uses light in the form of a pulsed laser to measure distances to the surface of the Earth from an airborne source. These light pulses — combined with other data recorded by the airborne system — have generated high definition, three-dimensional data about the surface characteristics of the Alacrán property.
Aeromagnetic Survey
A helicopter-borne aeromagnetic survey was undertaken over the Alacrán project area in 2001 by a major international mining company. Azure recently acquired the digital survey data and all background technical specifications of the survey, at no cost to the Company. The data was forwarded to Perth-based geophysical consultancy Southern Geoscience Consultants for reprocessing and image production. An example image of the survey is shown in Figure 1.
A large body of copper oxide and chalcocite mineralisation was identified in drilling undertaken by Grupo Mexico in the 1990’s at Cerro Alacrán (refer ASX release dated 07/01/15). This mineralised body is coincident with a spot magnetic high, as can be seen in Figure 1. The mineralisation is not constrained along strike and remains open at depth.
Several similar magnetic highs occur elsewhere within the Alacrán project area, some spacially associated with historical workings that exploited near-surface copper oxide mineralization, for example the Santa Barbara prospect in the northern part of the property. No drilling or other modern exploration techniques have tested these magnetic anomalies.
Following the successful sampling of the old mine workings at La Morita and San Simon, Azure’s geologists have now shifted their focus to the Santa Barbara and nearby El Caiman prospects.
Induced Polarisation Survey
Azure’s sampling program returned numerous samples containing moderate to high grades of oxide and sulphide copper mineralisation in and around the old mine workings at La Morita and San Simon (refer ASX release dated 15/04/15). To follow up these results, Azure has commenced an Induced Polarisation (IP) survey to identify geophysical anomalies indicative of buried sulphide mineralisation. The survey will cover the western part of the Alacrán project area on 200m spaced lines for a total of 33 line kilometres (see Figure 2). The survey is expected to be completed during May.
Azure’s IP survey covers a similar area to that which was surveyed with IP by the Mexican Geological Survey in 1981. Although rudimentary in comparison to modern IP technology, the earlier survey did identify strong and coherent chargeability and resistivity anomalies in the vicinity of the La Morita and San Simon mine workings (see ASX release dated 03/03/15). Due to the technical limitations of the equipment used in the historical survey, these anomalies are interpreted to be relatively shallow. Azure’s survey will test to depths of several hundred metres.
The presence of copper mineralisation associated with sulphides and strong silica alteration in the old mine workings, together with the historical IP anomalies, indicate there is good potential for significant copper sulphide and epithermal gold-silver mineralisation in the deeper sulphide zone.
FOLLOW UP WORK
The recent mapping and sampling programs identified significant zones of copper, gold and silver mineralisation at La Morita and San Simon. Based upon these results, together with possible chargeability and resistivity anomalies from the new IP survey, the Company expects to identify several targets for diamond drill testing, which is scheduled to be carried out mid-year 2015.
Azure will release exploration results to the market as they become available.
BACKGROUND
Alacrán is located in northern Mexico approximately 50km south of the USA border. The property covers 54km2 of highly prospective exploration ground in the middle of the Laramide Copper Province. This is one of North America’s most prolific copper-producing districts, extending from northern Mexico into the southern United States.
Alacrán lies in close proximity to several large copper mines, including being 15km from the world class, giant Cananea Copper Mine. Annual copper production capacity at Cananea is expected to reach 510,000 tonnes in 2015.
Azure has signed an Agreement with Minera Teck S.A. de C.V. (“Teck”), a Mexican subsidiary of Teck Resources Limited to acquire 100% of the property, subject to an underlying back-in right retained by Teck and a 2% NSR retained by Grupo Mexico S.A.B.de C.V.; (see ASX release dated 07/01/15). Teck is Canada’s largest diversified resource company and Grupo Mexico is Mexico’s largest and one for the world’s largest copper producers.
Tony Rovira Managing Director Azure Minerals Limited Ph: +61 8 9481 2555
-ENDS-
For further information, please contact:
Media & Investor Relations
Rupert Dearden
MAGNUS Investor Relations Ph:+61 8 6160 4903
Mob: +61 422 209 889
or visit www.azureminerals.com.au
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.
