Mineral Resource Estimate Progressing Well

HIGHLIGHTS:

• Further impressive assays received from final West Zone resource drill holes; including:
  • 10.85m @ 14.39% Zn+Pb in OPDH-142
  • 4.10m @ 17.34% Zn+Pb in OPDH-097
  • 4.95m @ 13.05% Zn+Pb in OPDH-109
  • 3.60m @ 15.60% Zn+Pb in OPDH-155
• OPDH-142 is located in the northeastern part of the West Zone and opens up potential for additional thick, high grade mineralised extensions in this area
• Massive sulphide mineralisation confirmed in the overlying Candelaria Formation
• Mineral resource estimate in progress and on track to be completed in June 2018

Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to announce the final assay results for its 100%-owned Oposura zinc-lead-silver project following the completion of the resource drill-out of the West Zone (refer Figure 1).

A highlight of the latest assay results is the intersection of 10.85 metres @ 14.39% Zn+Pb in drill hole OPDH-142 located on the northeastern edge of the West Zone resource drilling pattern (refer Figure 2). There is currently no drilling immediately to the northeast of hole OPDH-142 providing an opportunity for additional mineralised extensions in this direction.

The mineralisation intersected in OPDH-142 is situated at a depth of only 100m below surface, and it can be accessed with less than 200 metres of level mine development through mineralisation from where the mineralised zone outcrops.

This highlights the advantages provided by the flat-lying nature of the mineralisation in both the East and West Zones at Oposura.

Confirmation of the presence of massive sulphide mineralisation within the upper Candelaria Formation provides an opportunity to identify and potentially exploit mineralisation additional to that which is typically hosted within the underlying Arenillas Formation.

Drill hole OPDH-056 (refer Figure 3) intersected 2.8 metres at 19.0% Zn+Pb from a depth of 12.30 metres in the Candelaria formation as well as 3.7 metres at 15.59% Zn+Pb from 78.25 metres in the Arenillas formation.

Furthermore, it has been confirmed that historical exploratory underground mine workings elsewhere on the Oposura property accessed only outcropping Candelaria-hosted mineralisation and did not exploit underlying Arenillas-hosted mineralised zones. This provides Azure with the opportunity to identify buried, Arenillas-hosted mineralisation with further drilling.

Azure’s managing director Mr. Tony Rovira stated: “Pleasingly, assays from the final drilling into the West Zone continue to identify thick, high grade mineralisation, with potential extensions still to be tested by future drilling. Furthermore, confirmation of the presence of mineralisation within the overlying Candelaria Formation provides additional opportunities, particularly when this knowledge is combined with information from historical mining at Oposura that indicates that potential Arenillas-hosted mineralisation remains untested.”

As with the East Zone, where the terrain rises to the north above the West Zone mineralisation (refer Figures 3), underground mining is expected to be carried out using a simple room and pillar mining method utilising industry-standard mechanised mining equipment. Some thick mineralised intersections in the West Zone comprise narrow bands of very high-grade mineralisation separated by lower grade or waste material.

Azure’s studies indicate that some of these thick mineralised zones may be more suitable to a “bulk” mining approach rather than “selective” mining, thereby reducing unit operating costs and maximising resource recovery. Metallurgical testwork results support this option.

MINERAL RESOURCE

The Oposura West Zone mineral resource drill-out comprised 68 diamond core holes totalling 5,218.05m. Refer to ASX announcement dated 22 March 2018 and Table 2 in this report for all significant mineralised drill intersections from Oposura West Zone.

The Oposura mineral resource estimate is expected to be completed this month.