Azure Minerals: Promontorio resource estimate completed
azureminerals.com.au
First JORC resource for Azure, as the company progresses towards becoming an independent minerals producer in Mexico
• Initial JORC compliant resource estimate of 502,000 tonnes @ 4.7% Copper, 2.1 g/t Gold and 99 g/t Silver at a 1% copper cut off, containing approximately:
o 23,400 tonnes of Copper,
o 34,000 ounces of Gold, and
o 1.6 million ounces of Silver.
• Significant potential for further resources upgrades, with the deposit remaining open along strike (in both directions) and only drilled to 150m depth.
• Drilling 120m and 340m further along strike to the north of the deposit identifies good mineralisation.
• Reconnaissance exploration in Azure's new large mineral concession application surrounding the Promontorio deposit has identified more occurrences of copper mineralisation.
• Metallurgical test work continuing with first results expected during 1st Quarter 2009.
Azure Minerals Limited (ASX: AZS) ("Azure") is pleased to announce the initial JORC compliant resource estimate for the Promontorio copper – gold – silver deposit in Chihuahua, Mexico is now complete. Azure holds the option to acquire 100% of the Promontorio project, unencumbered by any future royalties.
The resource estimate is:
502,000 tonnes @ 4.7% Copper, 2.1 g/t Gold and 99 g/t Silver at a 1% copper cut off, containing a total of 23,400 tonnes of Copper, 34,000 ounces of Gold and 1.6 million ounces Silver. Full details of the resources classification and estimation methodologies are detailed in Appendix 1.
Azure's Executive Chairman, Mr Tony Rovira, said that the publication of the initial JORC resource at Promontorio was a pivotal moment for Azure.
"Azure has worked hard towards its vision of becoming an independent minerals producer in Mexico, through exploration success and identification of project opportunities," said Mr Rovira.
"We have now taken a significant step towards the fulfilment of our vision, with the publication of Azure's first JORC compliant resource. The initial resource is very pleasing, showing high copper grades, along with substantial gold and silver credits.
"This is just the beginning for Promontorio, with substantial further potential both near the currently defined deposit, as well as in the wider Promontorio concession."
"I am looking forward to the value we can create for Azure at Promontorio. Market conditions will make 2009 a challenging year for the resources sector, but it is shaping up as an excellent year for Azure. We are carefully managing our financial resources, as well as bringing in new partners, such as Japan's JOGMEC, to assist in funding exploration on other projects within our portfolio."
"Further work at Promontorio should place us in good stead, as we seek to position ourselves to capitalise on future upturns in the commodity cycle with an advanced stage project ready to go," said Mr Rovira.
Resource Geology
The Mineral Resource Statement, as presented in Appendix 1, was prepared by international mining consultancy Coffey Mining Pty Ltd (Coffey) of Perth, Western Australia.
The mineralised zone was diamond drilled over a strike length of 200 metres (9980mN – 10180mN) and to depths of about 150 metres below surface. Mineralisation remains open along strike to the north and south, and also at depth.
This resource represents only a small portion of the overall mineralised vein system. Two later holes drilled further to the north intersected good mineralisation in that direction (see Figure 1).
APR-DD-041 (located 120 metres north of the current resource) intersected 1.10m @ 3.8% copper, 22.1g/t gold & 168g/t silver. A second wildcat hole (APR-DD-042), drilled 340 metres north of the resource, encountered mineralisation up to 0.23% molybdenum, 3.5g/t gold, 0.4% copper and 29g/t silver. Geological mapping and surface sampling has also identified copper sulphide mineralisation in outcrop and on old mine dumps approximately 600 metres north of the resource.
Elevated levels of chalcopyrite (CuFeS2), bornite (Cu5FeS4) and molybdenite mineralisation, together with high temperature minerals such as tourmaline and sericite, in the northern drill holes suggest a vector towards more copper-rich mineralisation and the source porphyryintrusion at depth. This is potentially significant as high sulphidation epithermal veins, such as those identified at Promontorio, are often genetically related to copper-gold-molybdenum porphyry systems.
Future Developments
Azure is currently conducting a metallurgical test work program at the laboratories of AMDEL Ltd in Perth under the supervision of Coffey. First results should be available during the 1st Quarter 2009. This will provide a key indicator of the likely processing route for any future project at Promontorio. Coffey will also provide Azure with recommendations on the optimum process route, further downstream processing options, and comparisons of likely capital and operating costs.
Azure is planning the additional drilling to extend the resource along strike and at depth, and further drilling will also follow-up the mineralisation identified to the north.
A brief reconnaissance of Azure's new large mineral concession application (120km2) around the Promontorio deposit has identified other occurrences of copper mineralisation. This new property is considered prospective for further Promontorio-style deposits and the source mineralised porphyry system. |
