La Tortuga-Los Nidos (copper-molybdenum)
Azure 100%; JOGMEC earning 51%

Azure holds 100% ownership of the La Tortuga – Los Nidos properties which together consist of five mining concessions covering 258 square kilometres. In late 2008, the Japanese Oil, Gas and Metals National Corporation ("JOGMEC") recognised significant potential for large copper deposits on La Tortuga and the adjoining Los Nidos properties and approached Azure with a farm-in offer. A Joint Exploration Agreement was entered into and exploration commenced in December 2008. Under the terms of the agreement JOGMEC will earn a 51% interest in the project by sole funding the first US$3 million of exploration expenditure within three years.

JOGMEC is a 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.

La Tortuga is located 90 kilometres northwest of Hermosillo, the capital of Sonora State, where Azure has its exploration and administration base. The joint venture is operated and staffed by Azure with management and technical assistance from JOGMEC.

Azure and JOGMEC believe that La Tortuga is prospective for large porphyry copper and skarn copper-zinc deposits, and consequently the joint venture implemented an intensive exploration program, including:

• geological mapping and surface geochemical sampling;
• an airborne magnetic and radiometric survey;
• Induced Polarisation (IP) and resistivity surveys; and
• drilling one 502m deep diamond core hole.

Exploration results have been very positive with ten priority targets being identified. Five of these are in areas of outcrop where encouraging indications of mineralised porphyry and skarn systems were recognised by the mapping and sampling. In addition, a further five targets were identified by the geophysical surveys in areas covered by alluvium.

Target A is a 2km x 1km area in eastern La Tortuga containing outcrops of strongly altered intrusive and sedimentary rocks which hosts visible copper and molybdenum mineralisation at surface. This area was tested by diamond drill hole TOR-DD-001 which encountered disseminated and veinlet sulphide mineralisation hosted in over 400m of strongly altered porphyry rocks. Highly anomalous metals values were returned, confirming the presence of a mineralised porphyry system in this area. Follow-up exploration will comprise 1,500m of diamond core drilling to further test this target.

Further to the north, Targets H and I were identified by the IP, resistivity and magnetic surveys as having geophysical signatures characteristic of sulphide-rich skarn and porphyry copper deposits. There are no outcropping rocks in the vicinity of these targets, with both covered by an unknown thickness of transported alluvial sands and gravels. However they have been recognised as high priority targets and will by drill tested during the forthcoming year.

All results received to date support the excellent potential of this project to host significant porphyry copper and skarn copper-zinc deposits, and the Azure-JOGMEC joint venture is continuing to undertake intensive exploration programs.

Figure 2. Aster Satellite Image View 159 Kb PDF enlargement

Figure 3. Aeromagnetics Image View 123 Kb PDF enlargement