Promontorio
Figure 1: Promontorio Project
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Figure 2: Deposit Geology
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Azure holds the rights to acquire 100% of the Promontorio project in Chihuahua, Mexico. Promontorio is an advanced stage project, hosting a deposit with a historical resource, and several nearby prospects. A substantial historical database (including 15,267m of drilling) has highlighted the exceptional prospectivity of the project.
The Promontorio project consists of three concessions – Hidalgo, Promontorio & Magistral, as shown on Figure 1.
Azure will pay US$2.5 million over four years to two Mexican syndicates to acquire the Hidalgo and Promontorio concessions, with an option to bring forward payment at any time. The surrounding Magistral concession will be acquired on similar terms, with payments totalling $US1.5 million over four years. No royalties are payable for either acquisition.
The acquisition of the Promontorio fulfils Azure’s strategic objective to secure a high quality, advanced stage project with early cash flow potential.
The project contains the high grade Promontorio copper-gold-silver deposit, the Cascada gold-silver prospect and several other metal occurrences indicating an extensive mineralisation system.
With the acquisition of the surrounding Magistral concession, the project now completely covers the mineralised alteration zone. Mineralisation potential at Magistral is also high with old mine workings, oxide and sulphide mineralisation within gossanous outcrops and gold, silver and copper anomalies in surface sampling present within the property.
The historical resource estimate for the Promontorio deposit is 1,023,000 tonnes @ 4.0% copper, 2.4g/t gold & 63g/t silver*.
Promontorio consists of multiple massive and semi-massive sulphide veins containing very high grades of copper, gold and silver. From west to east there are three main veins – Santiago, Mina Vieja and Veta Grande – interspersed with several other, un-named, mineralised veins. All veins strike approximately north-south, dip steeply to the west, and demonstrate good geological continuity (see Figure 2).
Azure has commenced an 8,000 metres diamond drilling program to enable the completion of a JORC compliant mineral resource, expand the resource along strike and at depth and test other known mineralisation within the project area. As at 8 August 2008, Azure had completed 24 drillholes for a total of 4,350 metres
Design of the drill program and calculation of the mineral resources are under the guidance of the respected international mining consultancy, Coffey Mining Pty Ltd.
Initial results from the drilling program are excellent, with massive, semi-massive or disseminated sulphide mineralisation intersected in all holes drilled to date, confirming excellent internal continuity within the mineralised system.
Drilling results received to date include:- 4.00m @ 9.7% copper, 6.6g/t gold & 134g/t silver from 52.00m
- 13.35m @ 5.7% copper, 2.2g/t gold & 108g/t silver from 94.65m
- 6.85m @ 8.1% copper, 2.7g/t gold & 98g/t silver from 51.85m
- 20.00m @ 2.3% copper, 0.7g/t gold & 45g/t silver from 42.00m.
Strong potential for a depth extension to the Promontorio resource (past the current depth of 150m) exists, highlighted by the drilling results of 3.5m @ 12.6% copper, 4.1g/t gold & 357g/t silver from 252.5m and 3m @ 7.5% copper, 6.82g/t gold & 88g/t silver from 247m.
Additionally, the northernmost (10140mN) and southernmost (10020mN) sections (see Figures 3 & 4), demonstrate that the mineralisation system not only has further depth potential but also remains open to the north and south, with opportunities for significant expansion along strike.
Also present at the project is the Cascada prospect which hosts a near surface zone of gold-silver mineralisation, with wide zones (>10m) of moderate grade gold (1-2g/t) indicating the potential for a bulk tonnage gold deposit. A best intercept of 7.6m @ 19.8g/t gold highlights the potential for bonanza-grade gold mineralisation.
Other major deposits in the district include the Ocampo Mine (reserves of 2.5Moz gold and 113Moz silver), the Pinos Altos Project (reserves of 2.5Moz gold and 73Moz silver), the Dolores Mine (reserves of 2.4Moz gold and 127Moz silver), and the Palmarejo Project (resources of 1.7Moz gold and 150Moz silver).
* ASX waiver granted for disclosure of non-JORC code compliant resource.
See Azure ASX announcement of 6 May 2008