Azure Minerals gets investor support for Alacran

THE INSIDES TORY: Mexico-focused Azure Minerals (ASX: AZS) is not only progressing two advanced-stage projects in one of the world’s foremost precious metal and base metal mining provinces, it is doing so in partnership with two of the world’s major mining companies.

The first is the Alacrán silver-gold-copper project, which Azure has an option to purchase 100 per cent from Canadian major, Teck Resources.

Azure’s second major project is the Promontorio copper project over which, in 2014, the company signed an Earn-In and Joint Venture Agreement with Kennecott Exploration Company, part of the Rio Tinto Group.

Kennecott has to spend US$45 million to earn an 80 per cent interest in the project, after which Azure is free carried for the next US$200 million of JV expenditure. A major exploration program including deep diamond drilling targeting a large porphyry copper deposit is currently in progress.

Of late, much of the company’s focus has been dedicated to the Alacrán project since it confirmed discovery of the Mesa de Plata silver deposit and the Loma Bonita gold deposit.

It has since established a JORC Code-compliant Mineral Resource – 100 per cent Indicated – for the deposit, estimated to contain 25.9 million ounces of silver, with 15.3 million ounces hosted within a near-surface High-Grade Zone (HGZ).

Azure is currently undertaking studies into the development of a mining and processing operation, particularly focusing on the extracting the HGZ.

Adding further interest to the Alacrán project is the Loma Bonita gold prospect, which is located just 200 metres to the east of the Mesa de Plata silver deposit.

Recent drilling at Loma Bonita successfully extended the footprint of the deposit to over 450m in a north-south direction and up to 150m east-west, with some drill intercept of gold mineralisation in excess of 100m.

The mineralised zone remains open in all directions and drilling is continuing.

Best intercepts from recent Loma Bonita drilling include:

MDPC-089
49.5m at 1.59 grams per tonne gold and 29g/t silver from 54m, including 34.5m at 2.03g/t gold and 34g/t silver from 54m;

MDPC-090
111m at 0.81g/t gold and 18g/t silver from surface, including 30m at 1.56g/t gold and 15g/t silver from 34.5m; and

MDPD-020
14m at 1.59g/t gold and 36g/t silver from surface, including 8.1m at 2.45g/t gold and 39g/t silver from 4m.

“These results are very encouraging and support our belief Loma Bonita could become a substantial gold deposit, particularly as the grades and thicknesses of the gold zone appear to increase significantly to the south,” Azure Minerals managing director Tony Rovira told The Resources Roadhouse.

“Loma Bonita is now a high priority for Azure, as are the ongoing development studies we have underway at Mesa de Plata where drilling to upgrade the Mineral Resource to Measured status continues.

“Meanwhile, we have a grass roots exploration program continuing with diamond drilling proceeding further to the south of Loma Bonita at Cerro San Simon and Cerro Enmedio testing substantial geochemical and geophysical anomalies.”