Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to advise that high grade silver assays and strongly anomalous gold and base metal values have been returned from reconnaissance sampling at Palo Seco Sur, a previously untested zone located 750m south of the historical Palo Seco Mine (see Figure 1), part of the Company’s Alacrán Project.

HIGHLIGHTS:

• First sampling at Palo Seco Sur returns high grade silver and anomalous gold assays, including:

• Mineralisation is hosted in a structurally-controlled breccia zone that appears to extend north-south for at least 1,500m
• Previous exploration drilling returned 18.0m @ 31g/t Ag & 1.82% Zn near Palo Seco Mine (ASX: 16/09/2015)
• Channel sampling of outcropping breccia returned 12m @ 118g/t Ag near Palo Seco Mine (ASX: 19/01/2015)

Azure’s Managing Director, Tony Rovira, welcomed these results, stating, “Palo Seco was the first area that we tested when we started exploring Alacrán due to the presence of several historical mine workings. We’ve returned because of the potential size of the mineralised system and its obvious prospectivity for hosting significant precious and base metal mineralisation.

“The latest sampling results are very positive and I’m hopeful that future drilling may add Palo Seco to our list of mineral discoveries, joining the Mesa de Plata silver deposit and the gold-silver mineralisation at Loma Bonita."

In this newly identified area, several historical mine workings exploited a north-south linear structure containing silicified and brecciated volcanic rocks. Sampling (see Figure 2) returned assays ranging from high grade to strongly anomalous silver, gold, zinc and lead, confirming that the Palo Seco trend, may extend along strike for at least 1,500m and is prospective for precious and base metal mineralisation.

Table 1: Assay results from sampling of old mine workings at Palo Seco Sur

Azure is currently undertaking a detailed (100m x 50m spacing) soil sampling program over an area of 2.5km north-south by 1.0km east-west to cover the Palo Seco mineralised trend. If warranted, follow-up exploration, including drilling, will be undertaken.

Azure acquired the rights to the 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-

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 and Figures: http://www.azureminerals.com.au/azs//assets/2016/05/160516-High-Grade-Silver-at-Palo-Seco-Sur.pdf