Location



Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to announce that it has received results and a preliminary interpretation from the Induced Polarisation (IP) survey at the Promontorio Project located in the state of Chihuahua, Mexico.


KEY POINTS


• Strong IP anomalism indicates presence of substantial sulphide mineralisation across the Promontorio project area (See Figure 1)


• Near-surface chargeability anomaly coincident with the recently discovered Cascada high grade copper-gold-silver deposit (see Figure 2)


• Second large chargeability anomaly, possibly representing a buried porphyry copper body, commences about 300 metres beneath Cascada (see Figure 2)


• Strong resistivity anomalies also indicate potential for separate silica-rich gold mineralised zones near surface (see Figure 3)


Azure’s Managing Director, Tony Rovira, commented: “These are quite sensational IP results, defining two highly significant anomalies that could represent both epithermal and porphyry copper mineralisation within the Promontorio Project.


We have always considered it likely that the high sulphidation epithermal copper-gold-silver mineralisation at Promontorio and Cascada is sourced from a nearby intrusion of a porphyry copper mineralised system. Porphyry copper bodies have the potential to be very large in size with significant quantities of disseminated sulphides, and IP is an ideal geophysical method to identify mineralisation of this style.


The results from this IP survey confirm this potential and we are very keen to start drill testing these anomalies. I look forward to updating shareholders of further progress and results as they become available.”

 

DETAILS


The 16 line kilometre IP survey, with 100m spaced lines and 50m spaced stations, provides an excellent, very detailed, deep-looking coverage of the northern part of the Promontorio project area. It overlies the northern extensions of the Promontorio resource, the Cascada deposit and the Risco Dorado prospect.


The IP survey was designed to identify both near surface and deeply buried anomalies, such as:


1. Sulphide mineralisation representing extensions of the high grade copper zones at Promontorio, Cascada and Risco Dorado;


2. Intense silica-rich alteration containing gold mineralisation; and


3. Feeder zones and porphyry-hosted copper mineralisation.


A preliminary interpretation by the Company’s consultant geophysicists (see Figures 1 & 2) has concluded that the large chargeability anomaly evident in the middle of the survey area results from two overlapping polarising (chargeable) zones which represent two different bodies. Considering the geology of the area, these anomalies most likely represent substantial bodies of sulphide mineralisation.


The anomaly closest to surface (UPZ – Upper Polarisable Zone) is situated adjacent to, or overlapping, the drilled mineralisation at Cascada. The UPZ’s very strong chargeable IP response indicates a significant content of sulphide mineralisation, and this is supported by the presence of the disseminated sulphides observed in Azure’s drill holes. This anomaly is interpreted to be a feeder zone from the porphyry source at depth to the epithermal mineralisation at surface.


The deeper chargeability anomaly (LPZ – Lower Polarisable Zone) starts about 300m below surface at the southern end of the survey area and a shallow northerly plunge means it gradually gets deeper towards the north. This anomaly is interpreted to represent a porphyry copper body and is completely untested by drilling.


The survey’s resistivity responses indicate the presence of several highly resistive zones which are likely to represent areas of intense silicification. Azure’s exploration has identified a strong correlation between this type of alteration and gold mineralisation, as is evident at Cascada and Risco Dorado.


Following completion of the detailed geophysical interpretation, Azure will undertake planning of the next round of drilling.

 


BACKGROUND


The Promontorio and Cascada deposits both form separate parts of a high-sulphidation, epithermal system where base and precious metal mineralisation comprises massive, semi-massive and disseminated copper sulphides hosted in vuggy silica and silicified host rocks.


High sulphidation epithermal deposits form above porphyry copper bodies with feeder zones connecting the porphyry and the overlying epithermal system. These types of deposits are common in northern Mexico and south-western US.


Azure believes that beneath Cascada and Promontorio is a porphyry copper body which was the source of the copper, gold and silver mineralisation and is likely to be mineralised in its own right. This makes the Promontorio Project an exciting porphyry copper exploration target.


Azure is currently applying geochemical and geophysical vectors to direct our exploration towards the mineralising source.


Promontorio contains a JORC-compliant Mineral Resource1 (Indicated + Inferred) of:


1 Details of the resources classification and estimation methodologies are contained in Azure’s ASX announcement, released on 10th May 2013.


































2 See Copper Equivalency Statement in Appendix to this report.Resource Classification

Tonnes

CuEq2

(%)

Cu

(%)

Au

(ppm)

Ag

(ppm)

Reported Above 0.5% CuEq cut-off

Indicated

610,000

4.4

2.7

1.7

56

Inferred

230,000

3.3

1.8

1.5

56

Total

840,000

4.1

2.5

1.6

56

 

1 Details of the resources classification and estimation methodologies are contained in Azure’s ASX announcement, released on 10th May 2013.

2 See Copper Equivalency Statement in Appendix to this report.

 

-ENDS-

 

 







For further information, please contact: Tony Rovira

Managing Director

Azure Minerals Limited

Ph: +61 8 9481 2555

Press / Investor Relations

Victoria Thomas

Six Degrees Investor Relations

Ph:+61 3 9645 7567

 


APPENDIX


Copper Equivalency Statement:


• Copper Equivalent (CuEq) was based on the following assumed metal prices that were guided by the three year averages at the data cut-off date: US$3.25/lb for Cu, US$1,450/oz for Au and US$27.50/oz for Ag.


• The CuEq grade accounts for the following metal recoveries, which were based on metallurgical testwork completed by independent metallurgical laboratories AMDEL and Ammtec, under the supervision of Coffey Mining Pty Ltd: 97.9% for Cu, 93.4% for Au, and 97% for Ag.


• The following formula was used to calculate the equivalent grade: CuEq (%) = (Cu% x 0.979) + (Au (g/t) x 0.6077) + (Ag (g/t) x 0.0120)


• It is Azure’s belief that all elements included in the metal equivalent calculation have a reasonable potential to be recovered.


Competent Person Statements – Exploration Results and Mineral Resources


Information in this document that relates to Exploration Results and Mineral Resources 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 of Azure Minerals Limited. Mr Rovira has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 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.

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Layne, A Granite Company, provides sustainable solutions for water resources and mineral exploration. Originally established in 1882, Layne offers a rich history of delivering safe, professional, and reliable water and minerals solutions throughout North and South America. Granite acquired Layne and its subsidiaries in the fall of 2018, to further Granite’s strategy to grow through acquisition and diverse end market expansion.