6 MAY 2019
DRILLING UPDATE ON ALACRÁN
HIGHLIGHTS:
•Teck completes
•Confirmation of porphyry copper mineralisation at Cerro Alacrán with broad zones of visible chalcopyrite intersected
Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to provide an update on results from its
Project operator Minera Teck S.A. de C.V. (“Teck”), a
Teck’s Year 2 work program comprised geological, geochemical and geophysical surveys, followed by the Phase 2 diamond drilling campaign. The major focus of the drilling was testing the porphyry copper potential at Cerro Alacrán with other targets including epithermal precious metals targets at Cerro San Simon and Cerro Colorado.
At Cerro Alacrán, several drill holes intersected broad zones (greater than 100m drill width) of
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The Phase 2 drilling program comprised 21 holes for 10,540.4m and the two programs completed in 2017 and 2018 total 35 holes for 15,455.1m. Full and complete assays from the Phase 2 program have been received and mineralised drill intersections are detailed in Tables 2 & 3.
Sixteen of Teck’s holes targeted the Cerro Alacrán prospect where
2018 Drill Program
The 2018 drilling program was designed to test the overall mineral potential in the property, focusing in three areas, Cerro Alacrán, Cerro San Simon and Cerro Colorado (see Figure 1).
Figure 1: Areas targeted in Teck’s 2018 work program and other prospects
a)16 holes for 9,147.5m in Cerro Alacrán;
b)4 holes for 988.4m in San Simon; and
c)1 hole for 404.5m in Cerro Colorado.
Collar location data for the 2018 drill holes is provided in Table 1.
Assay results for the 2018 drill program have been received and mineralised intersections are listed in Tables 2 & 3. Intersections were calculated using lower grade
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Cerro Alacrán:
The primary focus of the 2018 drill program was to test the potential of Cerro Alacrán to host a large porphyry copper±molybdenum±gold deposit. This program was the first modern drilling since historical drilling undertaken in the 1970s and 1990s intersected wide zones of
Drilling has confirmed that copper mineralisation is contained within an area covering at least 2km x 1.5km (see Figure 2), with room for expansion.
Copper mineralisation within the oxide zone (turquoise) and sulphide transition zone (chalcocite) was intersected in many drill holes, returning broad intercepts of
Deeper drilling within the sulphide zone extended the previously known extents of strongly altered porphyry intrusions. Broad intercepts of disseminated chalcopyrite and
Figure 2: Drill holes at the Cerro Alacrán porphyry copper target
Level 1, 34 Colin Street, West Perth, Western Australia, 6005 | T: +61 8 9481 2555 | F: +61 8 9485 1290
www.azureminerals.com.au | ABN: 46 106 346 918
Cerro San Simon:
San Simon is a
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The objective of the 2018 San Simon drill campaign was to test the continuity of the gold and silver- bearing horizon that extends from the San Simon hill north towards the Loma Bonita
Cerro Colorado:
Cerro Colorado is a
The only hole drilled at Cerro Colorado in the 2018 campaign
Summary
Results from the 2018 exploration and drill program confirm the prospectivity of the Alacrán property to host
The overall copper grades contained within the broad intersections are of low to moderate grade, in the range of 0.15% to 0.30% Cu, however the presence of extensive mineralisation over several square kilometres and the broad intercepts of disseminated chalcopyrite and
Drilling has not closed off the mineralised body at Cerro Alacrán either laterally or at depth. Further drilling will be required to define both the overall size of the body and to test for higher grade zones.
Background to Alacrán Project
Azure earned 100% ownership of the Alacrán project from Teck in October 2016. In December 2016, Teck elected to exercise its right to earn back an ownership interest in the Alacrán project.
Work conducted during 2018 represents the second year of activity in a maximum
Under the
Level 1, 34 Colin Street, West Perth, Western Australia, 6005 | T: +61 8 9481 2555 | F: +61 8 9485 1290
www.azureminerals.com.au | ABN: 46 106 346 918
Upon reaching an initial 51% interest in the project, Teck may further increase its interest to 65% by sole funding an additional US$5 million in expenditures over a further two years and making cash payments to Azure totalling an additional US$1.5 million. In this case, Azure will retain a contributing 35% interest in the Alacrán project. Grupo Mexico retains a 2% NSR royalty.
Competent Person Statements:
Information in this report that relates to Exploration Results for the Oposura Project is based on information compiled by Mr Tony Rovira, who is a Member of The Australasian Institute of Mining and Metallurgy and fairly represents this information. Mr Rovira has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Rovira is a
Information in this report that relates to previously reported Exploration Results has been
Table 1: Drill hole information
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www.azureminerals.com.au | ABN: 46 106 346 918
TABLE 2: Gold mineralised drill intercepts of >10.0m @ >0.1g/t Au
Level 1, 34 Colin Street, West Perth, Western Australia, 6005 | T: +61 8 9481 2555 | F: +61 8 9485 1290
www.azureminerals.com.au | ABN: 46 106 346 918
TABLE 3: Significant copper mineralised drill intercepts of >10.0m @ > 0.1% Cu
Level 1, 34 Colin Street, West Perth, Western Australia, 6005 | T: +61 8 9481 2555 | F: +61 8 9485 1290
www.azureminerals.com.au | ABN: 46 106 346 918
Level 1, 34 Colin Street, West Perth, Western Australia, 6005 | T: +61 8 9481 2555 | F: +61 8 9485 1290
www.azureminerals.com.au | ABN: 46 106 346 918
Appendix
JORC Code, 2012 Edition – Table 1
Section 1: Sampling Techniques and Data
Level 1, 34 Colin Street, West Perth, Western Australia, 6005 | T: +61 8 9481 2555 | F: +61 8 9485 1290
www.azureminerals.com.au | ABN: 46 106 346 918
Level 1, 34 Colin Street, West Perth, Western Australia, 6005 | T: +61 8 9481 2555 | F: +61 8 9485 1290
www.azureminerals.com.au | ABN: 46 106 346 918
Level 1, 34 Colin Street, West Perth, Western Australia, 6005 | T: +61 8 9481 2555 | F: +61 8 9485 1290
www.azureminerals.com.au | ABN: 46 106 346 918
Section 2: Reporting of Exploration Results
Level 1, 34 Colin Street, West Perth, Western Australia, 6005 | T: +61 8 9481 2555 | F: +61 8 9485 1290
www.azureminerals.com.au | ABN: 46 106 346 918
Level 1, 34 Colin Street, West Perth, Western Australia, 6005 | T: +61 8 9481 2555 | F: +61 8 9485 1290
www.azureminerals.com.au | ABN: 46 106 346 918
Level 1, 34 Colin Street, West Perth, Western Australia, 6005 | T: +61 8 9481 2555 | F: +61 8 9485 1290
www.azureminerals.com.au | ABN: 46 106 346 918