Location

Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to provide an update on results from recent exploration activities on the Alacrán Project, located in the northern Mexican state of Sonora.

Highlights:

  • Sampling of underground mine workings confirms extensive zones of copper and gold/silver mineralisation, including:
105m @ 0.30% Cu and 45m @ 0.79% Cu from La Morita, and
42.5m @ 1.07g/t AuEq and 18.85m @ 1.25g/t AuEq from San Simon
  • Induced Polarisation (IP) survey at La Morita and San Simon continuing
  • Detailed soil sampling program in progress over IP survey area
  • Preparation for drilling at La Morita and San Simon is underway

Azure’s Managing Director, Tony Rovira, stated: “Our exploration activities at Alacrán continue to generate very positive results for both copper and gold/silver prospects. Some exciting, high quality targets have been identified and we are looking forward to commencing Alacrán’s maiden drilling program to test them in the near future.”

EXPLORATION ACTIVITIES

Detailed mapping and sampling from the La Morita and San Simon historical underground mine workings (see Figure 1) returned assays confirming extensive mineralised zones. La Morita contains copper-only mineralisation, while San Simon contains mostly gold and silver mineralisation, possibly indicating different stages of mineralisation by the porphyry system.

Initial reconnaissance was undertaken of the Santa Barbara prospect in the northern part of the property (see Figure 1). This revealed the presence of an old underground mine which is currently flooded with water. Local ranchers have reported it was a copper mine which operated on three levels, however this has yet to be confirmed. In the area around these workings and in the mine dumps, Azure’s geologists observed strong alteration and copper oxide mineralisation in gossans and vuggy silica. Samples have been collected and assays are awaited. Azure found no evidence of drilling or other modern exploration activities at Santa Barbara. 

La Morita

The La Morita adit is a 271m horizontal tunnel which enters from the side of a hill, and terminates at a depth of about 100m beneath the crest of the hill. Visible copper oxide mineralisation is present throughout most of the tunnel. Within the final 45m of the adit, moderate to abundant exotic copper mineralisation and mixed sulphide mineralisation is prevalent. Several cross-cutting tunnels branch off from the main tunnel in this area, providing exposures of the mineralised zone in several different directions.

Systematic sampling of the entire adit has been completed. Results have been received from about 75% of these samples, with assays confirming the presence of widespread and continuous copper mineralisation (see Figure 2). Sampling comprised continuous chip sampling on a marked line along one wall of the tunnel, with each sample being a three metre long channel.

The main tunnel returned a continuous mineralised length of 105m @ 0.30% Cu. This mineralised zone remains open, with assay results awaited from samples at either end.

The second zone, containing extensive exotic and sulphide copper mineralisation, returned a continuous length of higher grade mineralisation of 45m @ 0.79% Cu, with a highest value of 1.81% Cu. Assay results are still awaited from samples collected from several nearby crosscutting tunnels which contain strong visual copper mineralisation (see photo in Figure 3).

Geological controls and orientations of La Morita mineralisation are not confirmed at this time. However the presence of copper mineralisation in the adit and the cross-cutting tunnels indicate that it is extensive in at least two dimensions, with the third dimension down dip to be tested by drilling.

La Morita is a high priority target for Azure and will be drill tested as soon as practicable.

San Simon

Located 1.5km northeast of La Morita is the San Simon prospect, which comprises shallow vertical shafts and two horizontal adits, one about 20m long and the other 105m long. Previous reconnaissance sampling by Azure from in and around the old workings returned elevated gold and silver assays from strongly altered vuggy silica (refer ASX release dated 15/04/15).

Azure recently completed systematic channel sampling of the two adits. Assays for all samples have been received and confirm the presence of significant and continuous gold and silver mineralisation in both adits (see Figure 4). Sampling comprised continuous chip channel sampling on a marked line along one wall of each adit. 

The longer adit returned a continuous mineralised length of:

42.5m @ 1.07g/t AuEq (0.58g/t Au & 34.1g/t Ag)

The shorter adit returned a continuous mineralised length of:

18.85m @ 1.25g/t AuEq (0.47g/t Au & 54.8g/t Ag) 

The gold and silver mineralisation at San Simon is hosted in strongly iron-rich, vuggy silica (see photo in Figure 5). Similar material outcrops extensively around the San Simon workings and for over one kilometre further to the north. Previous surface sampling of the vuggy silica near to the workings returned strong mineralisation, including 1.97g/t Au & 100g/t Ag and 1.58g/t Au & 272g/t Ag.

Induced Polarisation Survey

The Induced Polarisation (IP) survey covering the northwestern part of the Alacrán property (see Figure 1), including the La Morita and San Simon prospects, is in progress. The objective is to identify geophysical anomalies indicative of buried sulphide mineralisation. The survey is being undertaken on 200m spaced lines for a total of 33 line kilometres, and Azure expects the survey to be completed within 3-4 weeks.

The IP survey covers a similar area to that which was surveyed with IP by the Mexican Geological Survey in 1981. Although rudimentary in comparison to modern IP technology, the earlier survey did identify strong and coherent chargeability and resistivity anomalies in the vicinity of the La Morita and San Simon mine workings (refer ASX release dated 03/03/15). Due to technical limitations of the equipment used in the historical survey, these anomalies are interpreted to be relatively shallow. Azure’s survey will test to depths of several hundred metres.

The presence of strong exotic copper and mixed sulphide mineralisation at La Morita indicates good potential for significant copper sulphide mineralisation at depth, which is likely to be detected by the IP survey as a chargeability anomaly. Similarly, the strong silica alteration hosting gold and silver mineralisation in and around the old mine workings at San Simon indicates the potential for epithermal precious metal mineralisation, which would present as resistivity anomalies.

Soil Sampling Survey

Azure has commenced a detailed soil sampling survey covering the same area as the IP survey. Soil samples are being collected at 50m intervals along the same 200m spaced lines being used by the geophysical survey crew. Analytical results from this program are awaited.

BACKGROUND

Alacrán is located in northern Mexico approximately 50km south of the USA border. The property covers 54km2 of highly prospective exploration ground in the middle of the Laramide Copper Province. This is one of North America’s most prolific copper-producing districts, extending from northern Mexico into the southern United States.

Alacrán lies in close proximity to several large copper mines, including being 15km from the world class, giant Cananea Copper Mine. Annual copper production capacity at Cananea is expected to reach 510,000 tonnes in 2015.

Azure has signed an Agreement with Minera Teck S.A. de C.V. (“Teck”), a Mexican subsidiary of Teck Resources Limited to acquire 100% of the property, subject to an underlying back-in right retained by Teck and a 2% NSR retained by Grupo Mexico S.A.B.de C.V.; (refer ASX release dated 07/01/15). Teck is Canada’s largest diversified resource company. Grupo Mexico is Mexico’s largest and one of the world’s largest copper producers.

-ENDS-

For further information, please contact:

Tony Rovira
Managing Director
Azure Minerals Limited
Ph: +61 8 9481 2555
Media & Investor Relations
Rupert Dearden
Citadel-MAGNUS
Ph:+61 8 6160 4903
Mob: +61 422 209 889

or visit www.azureminerals.com.au 

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 crossedreferenced 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: http://www.azureminerals.com.au/azs//assets/2015/05/Alacran-Delivers-Strong-Results-150513.pdf

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