Pozo de Nacho (Molybdenum - Copper)

Azure's 100%-owned Pozo de Nacho project is ideally located 5 kilometres south of the Hermosillo-Chihuahua highway, approximately 95 kilometres southeast of Hermosillo. Situated on the western edge of the strongly mineralised Sierra Madre Occidental region, the district contains several large molybdenum deposits, including the Cumobabi mine (46.5Mt @ 0.15% Mo and the El Creston deposit (177Mt @ 0.1% Mo).

A total of 7 diamond core holes and 17 RC holes totaling 3,374m have been drilled at Pozo de Nacho by Azure Minerals in 2006-2007 and by Canadian company Cominco (a predecessor of Teck Cominco) in 1977. This work identified a substantial body of molybdenum mineralisation hosted within an intrusive porphyry system and the surrounding sedimentary sequence. Mineralisation was intersected over an area of 600 x 250 metres, and from surface to depths in excess of 300m, and the mineralised zone remains open to the east, west and north.

Wide zones of molybdenum mineralisation were intersected in most drill holes, with better drill intercepts are presented in Table 1 (below). A large number of assays exceed 0.1% Mo, indicating potential for delineating higher grade zones of mineralisation with future drilling.

Mineralisation is present as veins and coarse to fine disseminations of molybdenite (molybdenum sulphide: MoS₂) hosted within strongly altered quartz porphyry and surrounding sediments (sandstones and siltstones). Chalcopyrite (copper sulphide) mineralisation is present in the drill core, producing moderate copper grades. Low grade silver mineralisation is also present throughout the system.

Azure believes that Pozo de Nacho has a potential target size of 75M - 150M tonnes of mineralisation at an estimated grade of 0.04% - 0.1% Mo. Further drilling is required to define the extent and fully delineate the potentially economic molybdenum mineralisation. In addition, deeper drilling is needed to investigate the porphyry copper potential at depth beneath the molybdenum-rich zone.

Molybdenum Sources View 39Kb PDF enlargement

Molybdenum Uses View 42Kb PDF enlargement

Table 1: Significant Drill Intercepts - Pozo de Nacho Project

Hole No	From (m)	To (m)	Interval (m)	Molybdenum Mo (ppm)	Molybdenum MoS2 (%)	Copper  (%)	Silver (ppm)	Comment
PDN-DD-01	254.0	356.8	102.8	294	0.05	0.03	0.9	Hole ended in mineralisation
including	280.0	285.0	5.0	1,382	0.23	0.02	0.8
PDN-DD-03	8.8	133.0	124.2	304	0.05	0.08	3.8
including	119.0	133.0	14.0	859	0.14	0.11	7.3
PDN-DD-04	68.0	251.7	183.7	303	0.05	0.06	1.6	Hole ended in mineralisation
PDN-DD-06	12.0	150.9	138.9	439	0.07	0.06	2.3	Hole ended in mineralisation
PDN-RC-02A	1.5	199.6	198.1	438	0.07	0.04	1.5	Hole ended in mineralisation
including	41.1	61.0	19.9	736	0.12	0.03	1.1