High Grade Drill Results Confirm Oposura Potential

HIGHLIGHTS:

Drilling intersects high grades of zinc & lead up to a maximum of 68.6% Zn+Pb
Substantial widths of sulphide mineralisation present in most holes
Metallurgical and mining studies in progress
Resource drill-out campaign by Azure expected to commence in October

Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to report that assay results from diamond drilling have confirmed significant widths of high grade zinc-lead-silver mineralisation on its newly-acquired Oposura Project (“Oposura”), located in the northern Mexican state of Sonora.

The latest news, from drilling undertaken by the previous owners, comes as Azure is preparing its maiden drilling campaign that will be used to complete a JORC mineral resource estimate. Drilling is scheduled to start in October following permit approval.

High Grade Mineralised Zones Intersected at Oposura¹ , including:

¹ Selected intercepts, see Table 1 for full details of all significant drill intercepts

² High Grade Zones use a 20% Zn+Pb lower grade cut-off and no top cut

³ Overall Mineralised Zones use a 10% Zn+Pb lower grade cut-off and no top cut

Commenting on the drilling, Azure’s Managing Director, Mr Tony Rovira said, “These intercepts have confirmed the high-grade tenor of the mineralisation, and the significant widths of the overall mineralised zone are very positive for the mining studies currently underway. Visually we recognised large quantities of sphalerite and galena in the drill core and it’s very encouraging that the assay results have confirmed the presence of high metal grades.

“The planning and approvals process for our maiden drilling campaign is well advanced and I’m expecting drilling to commence in October. This drilling program is designed to enable Azure to complete a mineral resource estimate within the first quarter of 2018.”

DRILLING DETAILS

Prior to the acquisition of Oposura, the previous owner (Grupo Minero Puma; “Puma”) completed a 16 hole, 994m diamond drilling program. Puma planned and supervised the drilling, including designing the targets, collar locations and orientations of all holes(see Figures 1 & 2 for locations and Tablesfor details). All of Puma’s drill holes are located within the easternmost part of the Oposura Main Zone.

As part of Azure’s due diligence and to ensure that results conform to JORC 2012 guidelines, the Company’s technical team assumed responsibility for sampling and assaying of these drill holes.

Importantly, substantial widths of massive and banded sulphides were present in most holes and assaying has confirmed that this mineralisation contains high zinc, lead and silver grades. All sulphide mineralisation is fresh and unoxidized irrespective of depth below surface. These factors support Azure’s conclusions, reached during the due diligence review of historical data, that Oposura has potential to host a substantial base metal deposit.

Encouragingly, drill holes BDA-01, BDA-03 and BDA-6AR returned significant mineralised intercepts that demonstrate continuity and identify extensions of high-grade mineralisation observed in the exposed faces of the historical exploratory underground mine workings (see Figures 3 & 4):

BDA-03 intersected 9.3m @ 11.4% Zn+Pb, which includes 2.85m @ 33.1% Zn+Pb immediately above the old mine workings (see Figure 5);
BDA-01 intersected two mineralised zones of 4.40m @ 13.0% Zn+Pb and 2.40m @ 7.76% Zn+Pb approximately 20 metres north of old workings; and
BDA-6AR intersected two mineralised zones of 7.40m @ 13.7% Zn+Pb and 3.85m @ 11.4% Zn+Pb approximately 50m north of the old workings.

Additionally, BDA-09R, BDA-10 and BDA-14R were all drilled to test on the periphery or outside of the known mineralised zone, and each hole intersected mineralisation. BDA-09R intersected up to 13.5% Zn+Pb, BDA-10 up to 31.9% Zn+Pb and BDA-14R up to 5.0% Zn+Pb. From the perspective of extending the mineralised zone, these results are promising, with BDA-10 located approximately 200m northwest of the exploratory mine workings.

UPCOMING DRILL PROGRAM

Azure has submitted an application for a resource drill-out program covering an area of 1,400m x 400m and a wider exploration drilling program. Approval of this permit is expected within four to six weeks and the Company expects to be drilling in October.

Figure 1: Puma drill hole locations and exploration potential of Oposura Project

Figure 2: Geology plan showing location of Puma drill holes in Oposura East

Figure 3: Cross section A-AA through Oposura East mineralised zone

Figure 4: Cross section B-BB showing drill intercepts, mineralisation and old mine workings

Figure 5: Photo of high-grade banded sulphide mineralisation

TABLE 1: Significant mineralised drill intercepts from Puma drilling

Table 2: Location data for all diamond holes drilled by Puma on the Oposura Project?

Note: Proposed holes BDA-12 & 13 were not drilled

-ENDS-

For enquiries, please contact:

Tony Rovira

Managing Director

Azure Minerals Limited

Ph: +61 8 9481 2555

Media & Investor Relations

Michael Weir / Richard Glass

Citadel-MAGNUS

Ph: +61 8 6160 4903

or visit www.azureminerals.com.au

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 full-time employee and Managing Director of Azure Minerals Limited and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Original Article: http://azureminerals.com.au/wp-content/uploads/2017/09/170904-Azure-hits-68-ZnPb-at-Oposura.pdf

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Maza Diamond Drilling

Maza Drilling is a Mexican company established in 2007 in Mazatlán, Sinaloa. Our Canadian founder, Mr. Guy de Launiere, has over 20 years of international experience managing diverse drilling operations. Maza Drilling strives to compete at the highest levels in terms of recovery, effectiveness, efficiency, and affordability at every project while keeping at the forefront of technology to meet our customer’s needs in this demanding market.