Project Overview
Project Location Map
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Azure's objective is to become an independent minerals producer through successful exploration and development of advanced stage projects in Mexico
Regional exploration, target identification and project acquisition in the world-renowned Sierra Madre Occidental Mineral Province of northern Mexico, has allowed Azure Minerals to acquire 10 wholly-owned projects covering 1,258km2. These projects are highly prospective for the discovery and development of precious and base metal and bulk commodity deposits.
Azure is committed to becoming a minerals producer by advancing its flagship Promontorio Copper-Gold-Silver Project, towards production. Promontorio is undergoing development studies and further exploration is continuing. The Company is also continuing exploration on three other key projects in Joint Venture (JV) with the Japanese Government organisation JOGMEC.
JOGMEC is a wholly-owned Japanese Government corporation established to assist in the stable supply of oil, gas and mineral resources to the Japanese economy. JOGMEC seeks to gain entry into high-potential mineral exploration projects through providing funding and technical assistance, with a view to the later introduction of commercial Japanese interests.
Promontorio
The Promontorio Project contains a high grade copper-gold-silver deposit hosted in veins of massive and semi-massive sulphides. Significant exploration potential exists to expand the resource along strike to the north and south, as well as at depth through further drilling.
The JORC Mineral Resources (Indicated and Inferred) for the Promontorio Project1 is demonstrated in the table below:
CATEGORY |
TONNES |
GRADE |
GRADE |
GRADE |
CONTAINED |
CONTAINED |
CONTAINED |
|---|---|---|---|---|---|---|---|
Indicated |
290,000 |
4.2 |
2.1 |
94 |
12,100 |
20,000 |
873,000 |
Inferred |
212,000 |
5.3 |
2.1 |
106 |
11,300 |
14,000 |
724,000 |
TOTAL |
502,000 |
4.7 |
2.1 |
99 |
23,400 |
34,000 |
1,598,000 |
Metallurgical testwork has returned highly encouraging results indicating that a low risk processing route utilising conventional crushing, grinding and flotation technologies, will produce a high grade copper concentrate (40% Cu) with strong gold (10g/t Au) and silver (770g/t Ag) credits.
Economic evaluation indicates that Promontorio can be developed and operated at a significant profit and as such is a key priority for Azure as the Company moves towards becoming a minerals producer. The high grade of the mineralisation provides a large positive margin over operating costs, especially at today's metal prices and it is anticipated that the capital cost of development will be relatively low.
Regional exploration around Promontorio has also identified several occurrences of epithermal quartz veining containing economically viable gold and silver grades. These vein systems warrant further exploration, including a drilling program. Initial exploration focused on the Cascada Prospect where detailed mapping and surface sampling has outlined a large system of gold-silver mineralisation extending over a strike length in excess of 700 metres and a width of up to 40 metres at surface. Azure has tested Cascada with just one diamond drill hole which intersected a wide zone of quartz veined, altered and silicified volcanic rocks returning 137m @ 0.42g/t Au and 6g/t Ag. The drill hole finished in mineralisation with the last sample returning 0.6m @ 0.58g/t Au & 7g/t Ag. The Company believes that Cascada is a bulk tonnage target that has potential to contain significant gold and silver mineralisation. This is a high priority target for Azure.
El Tecolote District
Azure has 100% ownership of a 626km2 strategic tenement holding which comprises four adjoining properties (El Tecolote, San Eduardo, La Tortuga and Los Nidos) prospective for large porphyry-hosted copper and skarn copper-zinc deposits. The Company has established two JVs covering three of the properties (the El Tecolote JV and the LA Tortuga-Los Nidos JV) with JOGMEC. Both JV's are managed and staffed by Azure, with funding and technical assistance provided by JOGMEC.
El Tecolote JV
Situated between Azure's San Eduardo and La Tortuga-Los Nidos project areas, El Tecolote is a 178km2 property containing abundant evidence of base metal mineralisation with potential for both porphyry copper and skarn copper-zinc deposits. This is demonstrated by the presence of the now-closed El Tecolote Mine, a skarn-hosted copper-zinc-silver mining and processing venture operated by Grupo Mexico, Mexico's largest mining company, in the period 1978-1984. Historical production is recorded as 1.4Mt @ 1.9% copper, 7.0% zinc & 47g/t silver. Production ceased in 1984 due to low commodity prices, leaving unmined copper and zinc mineralisation surrounding the old mine workings. Additional potential exists along strike and at depth however no modern exploration has occurred in the district to date.
The intensive 2011 work program, utilising a $US1.5 million budget, is nearing completion. This program has included:
- Geological mapping and surface sampling
- Ground magnetic, aeromagnetic and airborne electromagnetic surveys
- Induced Polarisation and resistivity surveys
- Diamond core drilling.
Under the terms of the JV agreement, JOGMEC can earn an initial 51% interest in El Tecolote by spending US$5 million over the first three years, and can earn an additional 19% stake by spending a further US$8 million during the following three years, thus taking its potential total project equity to 70% for US$13 million of exploration expenditure.
La Tortuga-Los Nidos Joint Venture
The La Tortuga Project, consisting of Azure's 100% owned La Tortuga and Los Nidos properties, covers 213km2. In 2008, Azure entered into a JV whereby JOGMEC could earn a 51% interest in the project by spending US$3 million. At last update, JOGMEC has funded approximately US$2 million of expenditure with the remainder of funding to be spent by March 2013.
The JV has allowed Azure to progress and complete an airborne magnetic and radiometric survey, IP surveys and diamond drilling (13 holes for a total of 4,560m). Drilling has intersected porphyry and skarn style mineralisation hosting disseminated and veinlet sulphides containing anomalous grades of copper, molybdenum, zinc & silver.
Merging of the aeromagnetic data from La Tortuga with the recently completed El Tecolote survey has identified several new targets near the common boundary of the two project areas, providing further indications suggestion that La Tortuga is highly prospective for porphyry copper deposits. Further work, involving a deep seeking 3-D IP survey and follow-up diamond drilling is planned for 2012.
Other Projects
Azure holds several other 100%-owned properties and is seeking farm out / sale opportunities for these non-core properties.