THE DRILL SERGEANT: Azure Minerals (ASX: AZS) has announced an updated Mineral Resource for the company’s Promontorio copper-gold-silver deposit in northern Mexico.
The total Mineral Resource now stands at 840,000 tonnes at 4.1 per cent copper equivalent (CuEq) (at 0.5 per cent CuEq grade cut-off).
Promontorio Mineral Resource estimate based upon a 0.5 per cent CuEq lower cut-off grade. Source: Company announcement
“We’re pleased to finalise and present the updated JORC Mineral Resource, as this is another important step towards production from Promontorio,” Azure Minerals managing director Tony Rovira said in the company’s announcement to the Australian Securities Exchange.
“With approximately 75 per cent of the Promontorio Resource upgraded to the Indicated Mineral Resource category, we can now move to the Feasibility Study stage, including completing a definitive underground mine design, production schedule and a JORC-compliant Probable Ore Reserve.
“Previously we were unable to produce an Ore Reserve as a significant component of the first resource was in the Inferred category.
“This is a significant step towards the fulfilment of our vision to become a copper miner in Mexico, and I look forward to the extra value we can create for Azure at Promontorio.
“This has already started with drilling about to commence at the newly discovered, high grade copper zone at Cascada.
“If we’re successful in defining a large mineralised zone here, there will be a major benefit to the overall Promontorio project.”
Azure said the Mineral Resource estimate will be used to form the basis of a full mining evaluation, which will be part of the Feasibility Study.
The mining study will include an estimate of Probable Ore Reserves and updated mine design, mining method, production schedule, and mine capital and operating costs.
The company expects to undertake the mining study in the second half of 2013.