Azure to fly solo on Mexican project
THE BOURSE WHISPERER: ASX-listed powerhouse OZ Minerals has walked away from the San Eduardo Joint Venture with Mexican-focused Azure Minerals.
Exploration to date has focused on the southern part of Azure’s 100% owned San Eduardo project area including geological mapping, surface geochemical sampling, and geophysical surveying.
This activity identified a porphyry copper target, which was subsequently tested by the drilling of one 600 metre deep diamond drill hole.
According to Azure this drill hole intersected wide zones of strongly altered and quartz veined porphyry containing substantial quantities of pyrite, with minor amounts of copper oxide and copper sulphide mineralisation.
The company said OZ Minerals considered that the geophysical and geochemical anomalism which identified the target is explained by the presence of the pyrite and copper mineralisation observed in the drill core, and has advised Azure of its intention to withdraw from the San Eduardo Joint Venture as of the 30th June 2011.
Under the terms of the Joint Venture agreement, OZ Minerals could withdraw at any time following it spending at least US$300,000. This milestone has been met and upon withdrawal, OZ Minerals retains no interest in the project.
Azure Minerals executive chairman Tony Rovira said in the company’s ASX announcement that although the fact Oz Minerals has opted to walk form the JV, there remains a positive side.
That is that Azure retains 100% project equity in San Eduardo following the substantial amount of work completed by the Joint Venture and expenditure in excess of US$660,000.
“The large amount of technical data collected through the participation and funding of OZ Minerals has highlighted the extensive prospectivity of this property,” Rovira said in the announcement.
“This work identified numerous porphyry-copper and skarn copper-zinc targets in addition to the single one OZ Minerals focused on.
“These targets are untested to date and we remain very enthusiastic about continuing our drilling in these areas.
“Azure Minerals thanks OZ Minerals for the opportunity to work together on the San Eduardo project.”
Azure remains confident in the exploration potential of San Eduardo, particularly, as it considers the encouraging results being received from the adjoining El Tecolote property, where a JV between Azure and the Japanese Government corporation JOGMEC is undertaking intensive exploration.
Azure is currently reviewing all San Eduardo data with the view to deciding whether to undertake further exploration in its own right or to pursue discussions with several companies who have previously expressed interest in the property.