Has a large landholding in a very prospective channel in Mexico, where several huge mines are positioned. As well as some good iron ore prospects in WA.
Capital Structure
Shares 112,350,004
Unlisted Options 14,100,000
Market Cap $25,290,000
Reasons To Buy Into AZS
-Exposure to commodities with best outlook Lead,Zinc,Molybdenum, Iron Ore
-Large landholdings in well defined resource channels in Mexico
-Well funded with recent placement by Patersons Securities
-Constant stream of drilling/sampling results over the medium term
-Extremely high grades already uncovered
-Well funded joint venture partners Rio Tinto, Geoinformatics (TSX)
-Plenty of upside compared to its peers in Mexico
– Bolnisi Gold USD$740 million
– Alames Gold $925 million
– Minefinders $520 million
– Frontera Copper $240 million
-Drilling from La Bufa molybdenum project due anytime now (according to company announcement on 30/5/07)
A closer look into some of its many projects
Potreritos Project
Potreritos is located 115 kilometres northeast of Hermosillo, the capital of Sonora, less than 10 kilometres from the Hermosillo-Arizona (USA) highway. The property covers the southern extension of the Cumobabi molybdenum-copper field, Mexico’s highest grade and largest molybdenum mine (see Figure 1).
Azure’s 2006 reconnaissance exploration program on the Potreritos Project comprised geological mapping, geochemical sampling, an Induced Polarisation (“IP”) survey, and a 3-hole Reverse Circulation (“RC”) drilling program. This work identified wide, near-surface zones of high grade copper mineralisation, with:
several significant old mine workings;
chalcopyrite (copper-sulphide) and copper-oxide mineralisation in outcropping breccia zones up to 50 metres wide;
copper values ranging up to 1.66% Cu in rock-chip samples;
a 700 metre long copper-in-soil anomaly which is open along strike;
several strong IP chargeability anomalies indicative of accumulations of disseminated sulphide mineralisation; and
high-grade copper and silver mineralisation in the RC drilling (eg: 4.6m @ 4.92% Cu & 38g/t Ag from 21.3 metres).
Jagüey Project, Mexico
Jagüey is located in the western foothills of the Sierra Madre Occidental mountain range, about 190 kilometres east of Hermosillo. The property contains volcanic and intrusive rocks prospective for porphyry copper and associated styles of mineralisation.
Azure’s 2006 work program comprised several phases of exploration, including geological mapping, soil and rock chip sampling, Induced Polarisation (IP) surveying, and diamond core drilling. This work identified:
a large (4km x 2km) area of intense alteration and strong geochemical anomalism;
several groups of old mine workings;
two very strong IP anomalies indicative of significant accumulations of disseminated sulphides; and
near surface, high grade, silver-lead-zinc mineralisation hosted in massive sulphide veins.
Azure completed a program of diamond drilling (5 holes for 1,450 metres) which returned several high grade intercepts of silver-lead-zinc mineralisation in massive sulphide veins. Better intercepts included:
3,180g/t silver & 19% lead+zinc over 0.7 metres from a depth of 19.2 metres;
526g/t silver & 4.3% lead+zinc over 0.5 metres from 37.4 metres;
242g/t silver & 9.9% lead+zinc over 0.6 metres from 95.9 metres; and
122g/t silver & 13.8% lead+zinc over 1.1 metres from 116.8 metres.
Azure plans to carry out further diamond drilling at Jagüey to follow-up these very promising initial results.
San Nicolas Project, Mexico
The project straddles the Hermosillo-Chihuahua highway, 185 kilometres southeast of Hermosillo. San Nicolas is located 140 kilometres northwest of the Palmarejo Gold and Silver Mine (Bolnisi Gold NL).
The property is located in a well-mineralised district containing numerous mines and deposits, including:
Los Verdes molybdenum-copper deposit (approx 32Mlbs Mo and 110Mlbs Cu), currently undergoing a feasibility study, located 2km east of San Nicolas; and
Dios Padre silver mine (approx 100Moz silver), located 15km east of San Nicolas.
Reconnaissance exploration confirmed the potential of the property, with rock chip sampling returning high grades up to 6.2% copper, 795g/t silver, and 7.1% zinc. Furthermore, historical mine workings discovered on a breccia ridge contain visible molybdenite (a molybdenum sulphide ore mineral), and samples collected from the outcrop returned high molybdenum grades, peaking at 5,340ppm Mo (0.534% Mo).
Trenching exposed molybdenum-rich pegmatite veins. Channel samples returned best intervals of 30m @ 800ppm Mo, including 6m @ 1,100ppm Mo and 8m @ 1,200ppm Mo, 32m @ 560ppm Mo and 8m @ 1,100ppm Mo.
The company considers that the San Nicolas project has excellent potential for hosting significant copper, molybdenum and silver mineralisation. Further exploration, including drilling, will be undertaken during the first half of 2007
Cardeleña Project, Mexico
The Cardeleña project is located 130 kilometres southeast of Hermosillo, close to established infrastructure including sealed roads, water, power and labour. The local area is well endowed with mineralisation, including porphyry and breccia-style copper systems and epithermal and structural gold-silver deposits. The project area is underlain by a highly prospective mix of intrusive and volcanic rocks and intrusive breccias.
Historical drilling by Kennecott Exploration at Cardeleña targeted porphyry copper mineralisation in the vicinity of the old Cardeleña Copper Mine. Anomalous drill intercepts, including 36m @ 0.3% copper and 10g/t silver, were returned from near-surface oxide mineralisation. Kennecott deemed the target did not meet their corporate size criteria and transferred control and ownership of the project to Geoinformatics and thence into the Azure joint venture.
Azure’s exploration has identified a zone of outcropping mineralised breccia containing anomalous copper and silver. Work has included geological mapping, and soil and rock chip sampling. This work identified:
an intrusive-style breccia body containing anomalous geochemistry in soil sampling and rock chips;
a +5g/t silver soil anomaly with dimensions of 600m x 200m, with individual values ranging up to 22.3g/t Ag; and
copper, lead, zinc and molybdenum soil anomalies coincident with the silver anomaly.
The Cardeleña breccia hosts soil anomalies with significantly higher geochemical values than the Potreritos breccia (which returned a drill intercept of 4.6m @ 4.92% Cu).
Arroyo Amarillo Project, Mexico
During 2006, Azure exercised its right to assign a new project to the joint venture portfolio, when it was offered the Arroyo Amarillo project by Geoinformatics. Arroyo Amarillo lies adjacent to the Hermosillo-Chihuahua highway about 190 kilometres southeast of Hermosillo and 10 kilometres north of San Nicolas. It is located about 140 kilometres northwest of the Palmarejo Gold and Silver Mine (Bolnisi Gold NL).
The project area covers 962 hectares overlying volcanic and intrusive rocks. Local geology demonstrates strong alteration and stockwork vein development, with several groups of old mine workings present. Rock chip sampling returned high grade mineralisation, including 1,395g/t silver, 2.7g/t gold, 1.2% copper, 16.2% lead and 2.4% zinc.
The alteration and mineralisation are indicative of a high sulphidation epithermal system and the property is considered to be highly prospective for silver and gold-rich, polymetallic sulphide vein mineralisation. Further exploration, including drilling, will be undertaken during the first half of 2007.
Splinter Project, Australia
Iron Ore, Copper & Gold
Azure Minerals 100%
Splinter comprises four granted Exploration Licences covering 840km 2, and is located 120 kilometres northeast of the port of Esperance. The project has been a focus of the company since listing in 2003 due to its prospectivity for iron ore (magnetite-style) deposits and iron oxide copper-gold deposits.
Recent drilling by Azure has identified a large Banded Iron Formation (BIF) containing multiple iron-rich magnetite zones. Highlights include:
Wide zones of high grade magnetite mineralisation;
Potential 16 kilometre strike length;
Better intercepts include 24m @ 30.8% iron and 50m @ 22.8% iron;
High grades start at only 5 metres below surface;
Davis Tube Recovery metallurgical testwork returned:
recoverable magnetite of 39.5%;
magnetite concentrate grade of 66.5% iron;
very low levels of impurities; and
Splinter compares favourably with other Western Australian magnetite deposits.
The Splinter BIF forms an eight kilometre long antiform, with magnetite-rich units occurring on both limbs of the fold, indicating potential for a magnetite deposit of substantial size.
Further exploration has also identified another, much larger magnetic formation within the eastern part of the project area. This Eastern Banded Iron Formation has a magnetic signature that has up to twice the magnetic intensity as the Splinter BIF, indicating a higher magnetite content.
Very few juniors have exposure to such a wide range of commodities, with many prospects sited right in the heart of Mexico’s elephant country.
With funding now taken care of AZS can get down to the business of churning out results, with so many extremely high grade hits/samples already the future certainly looks positive.
Be the first to comment