| | Published : April 23rd, 2015 | Exploration Update for Alacran |
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ASX: AZS 23 APRIL 2015
ALACRÁN EXPLORATION UPDATE
Azure Minerals Limited (ASX: AZS) ("Azure" or "the Company") is pleased to provide an update on recent exploration activities from the Alacrán Copper Project, located in the northern Mexican state of Sonora.
Key Points:
Strong progress identifies targets at La Morita and San Simon for a Diamond drill program scheduled for mid-2015
LiDAR airborne survey for aerial photographs and digital terrain model completed
Aeromagnetic survey data acquired and reprocessed
Induced Polarisation survey covering La Morita and San Simon prospects commenced
Mapping and sampling in and around old mine workings continues
Diamond drilling scheduled for mid-year following evaluation of results from current exploration activities
Azure's Managing Director, Tony Rovira, stated: "We are very pleased with current progress at Alacrán. Through our on-ground exploration activities and the ongoing historical research and data recovery programs, we're building a comprehensive picture of the potential of this project - and it's looking good.
"I've previously described Alacrán as the best under-explored copper project in Mexico, and so far we've not been disappointed. Recent exploration results and the programs currently underway are expected to deliver us high quality targets which we will test with Diamond drilling as soon as possible."
EXPLORATION ACTIVITIES
LiDAR Survey
An airborne survey using the LiDAR system to produce a Digital Terrain Model (DTM) and aerial photographs covering the Alacrán project area has been successfully completed, and high definition images and the DTM are expected to be delivered shortly.
LiDAR, which stands for Light Detection and Ranging, is a remote sensing method that uses light in the form of a pulsed laser to measure distances to the surface of the Earth from an airborne source. These light pulses - combined with other data recorded by the airborne system - have generated high definition, three-dimensional data about the surface characteristics of the Alacrán property.
Aeromagnetic Survey
A helicopter-borne aeromagnetic survey was undertaken over the Alacrán project area in 2001 by a major international mining company. Azure recently acquired the digital survey data and all background technical specifications of the survey, at no cost to the Company. The data was forwarded to Perth-based geophysical consultancy Southern Geoscience Consultants for reprocessing and image production. An example image of the survey is shown in Figure 1.
A large body of copper oxide and chalcocite mineralisation was identified in drilling undertaken by Grupo Mexico in the 1990's at Cerro Alacrán (refer ASX release dated 07/01/15). This mineralised body is coincident with a spot magnetic high, as can be seen in Figure 1. The mineralisation is not constrained along strike and remains open at depth.
Several similar magnetic highs occur elsewhere within the Alacrán project area, some spacially associated with historical workings that exploited near-surface copper oxide mineralization, for example the Santa Barbara prospect in the northern part of the property. No drilling or other modern exploration techniques have tested these magnetic anomalies.
Following the successful sampling of the old mine workings at La Morita and San Simon, Azure's
geologists have now shifted their focus to the Santa Barbara and nearby El Caiman prospects.
Figure 1: Aeromagnetic image with locations of prospects, old mines and drill holes
Induced Polarisation Survey
Azure's sampling program returned numerous samples containing moderate to high grades of oxide and sulphide copper mineralisation in and around the old mine workings at La Morita and San Simon (refer ASX release dated 15/04/15). To follow up these results, Azure has commenced an Induced Polarisation (IP) survey to identify geophysical anomalies indicative of buried sulphide mineralisation. The survey will cover the western part of the Alacrán project area on 200m spaced lines for a total of
33 line kilometres (see Figure 2). The survey is expected to be completed during May.
Azure's IP survey covers a similar area to that which was surveyed with IP by the Mexican Geological Survey in 1981. Although rudimentary in comparison to modern IP technology, the earlier survey did identify strong and coherent chargeability and resistivity anomalies in the vicinity of the La Morita and San Simon mine workings (see ASX release dated 03/03/15). Due to the technical limitations of the equipment used in the historical survey, these anomalies are interpreted to be relatively shallow. Azure's survey will test to depths of several hundred metres.
The presence of copper mineralisation associated with sulphides and strong silica alteration in the old mine workings, together with the historical IP anomalies, indicate there is good potential for significant copper sulphide and epithermal gold-silver mineralisation in the deeper sulphide zone.
Figure 2: Location of IP lines covering the La Morita and San Simon prospects
FOLLOW UP WORK
The recent mapping and sampling programs identified significant zones of copper, gold and silver mineralisation at La Morita and San Simon. Based upon these results, together with possible chargeability and resistivity anomalies from the new IP survey, the Company expects to identify several targets for Diamond drill testing, which is scheduled to be carried out mid-year 2015.
Azure will release exploration results to the market as they become available.
BACKGROUND
Alacrán is located in northern Mexico approximately 50km south of the USA border. The property covers 54km2 of highly prospective exploration ground in the middle of the Laramide Copper Province. This is one of North America's most prolific copper-producing districts, extending from northern Mexico into the southern United States.
Alacrán lies in close proximity to several large copper mines, including being 15km from the world class, giant Cananea Copper Mine. Annual copper production capacity at Cananea is expected to reach 510,000 tonnes in 2015.
Azure has signed an Agreement with Minera Teck S.A. de C.V. ("Teck"), a Mexican subsidiary of Teck Resources Limited to acquire 100% of the property, subject to an underlying back-in right retained by Teck and a 2% NSR retained by Grupo Mexico S.A.B.de C.V.; (see ASX release dated 07/01/15). Teck is Canada's largest diversified resource company and Grupo Mexico is Mexico's largest and
one for the world's largest copper producers.
Tony Rovira Managing Director Azure Minerals Limited Ph: +61 8 9481 2555
-ENDS-
For further information, please contact:
Media & Investor Relations
Rupert Dearden
MAGNUS Investor Relations
Ph:+61 8 6160 4903
Mob: +61 422 209 889
or visit www.azureminerals.com.au
Information in this report that relates to Exploration Results is based on information compiled by Mr Tony Rovira, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Rovira is a full-time employee and Managing Director of Azure Minerals Limited. Mr Rovira has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Rovira consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Information in this report that relates to previously reported Exploration Results has been crossed-referenced in this report to the date that it was reported to ASX. Azure Minerals Limited confirms that it is not aware of any new information or data that materially affects information included in the relevant market announcement.
JORC Code, 2012 Edition - Table 1
Section 1: Sampling Techniques and Data
Criteria
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JORC Code explanation
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Commentary
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Sampling
techniques
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Nature and quality of sampling (eg cut channels, random
chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30
g charge for fire assay'). In other cases more explanation
may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
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The airborne magnetic survey was carried out over
295 km² and consisted of approximately 1085 line km of varying lengths flown north-south at a spacing of
300m and in part 150m. East-West tie lines were flown every 3km.
The magnetic survey equipment was fully calibrated and daily tests were carried out to ensure data quality.
This release has no reference to drilling, sampling, assays or mineralisation.
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Drilling
techniques
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Drill type (eg core, reverse circulation, open-hole hammer,
rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of Diamond tails, face-sampling bit or other type, whether core is
oriented and if so, by what method, etc).
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This release has no reference to drilling, sampling,
assays or mineralisation.
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Drill sample
recovery
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Method of recording and assessing core and chip sample
recoveries and results assessed.
Measures taken to maximise sample recovery and ensure representative nature of the samples.
Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
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This release has no reference to drilling, sampling,
assays or mineralisation.
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Logging
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Whether core and chip samples have been geologically and
geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
The total length and percentage of the relevant intersections logged.
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This release has no reference to drilling, sampling,
assays or mineralisation.
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Sub-sampling
techniques and sample preparation
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If core, whether cut or sawn and whether quarter, half or
all core taken.
If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the sample preparation technique.
Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain size of the material being sampled.
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This release has no reference to drilling, sampling,
assays or mineralisation.
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Quality of assay
data and laboratory tests
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The nature, quality and appropriateness of the assaying
and laboratory procedures used and whether the technique is considered partial or total.
For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
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This release has no reference to drilling, sampling,
assays or mineralisation.
Roving Magnetometer: Model: Scintrex CS-2
Sensitivity: Less than 0.01 nT Sample Interval: 0.1 seconds Measurement Range: 100-1,000,000 nT
Mount: (towed bird 30m below helicopter)
Mean Terrain Clearance: Aircraft (helicopter at 60m) Sensors: Magnetometer (30m above terrain or obstacles)
Aircraft Type/Manufacturer: Bell/Textron 206B Type of Fuel: Jet-B
Survey Speed: (nominally 110 km/hr)
Approximate Data Sample Spacing: Magnetic Field
5m or less
The base station setup was as follows: Model: Scintrex SM2
Sensitivity: Less than 0.1 nT Sample Interval: 5 seconds or less
Recording: Digital
Synchronization: Correlation with airborne magnetometer. Time stamped with time accurate to within 0.005 seconds.
The survey was done from May 1 2001 to May 5 2001
The magnetic survey equipment was fully calibrated and daily tests were carried out to ensure data quality.
GPS: Ashtech Z-Surveyor differential GPS base station and rover with post processing.
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Verification of
sampling and assaying
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The verification of significant intersections by either
independent or alternative company personnel. The use of twinned holes.
Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
Discuss any adjustment to assay data.
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This release has no reference to drilling, sampling,
assays or mineralisation.
All primary data was recorded digitally and sent in electronic format to the geophysical supervisor.
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Location of data
points
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Accuracy and quality of surveys used to locate drill holes
(collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.
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This release has no reference to drilling, sampling,
assays or mineralisation.
The grid system used is NAD27 CONUS UTM Zone
12 for easting, northing and RL.
Topographic data was obtained during the magnetic survey using the GPS.
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Data spacing and
distribution
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Data spacing for reporting of Exploration Results.
Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
Whether sample compositing has been applied.
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Line spacing was 300m and reading spacing was 5m
or less. Infill spacing of 150m was done in the south central part of the survey area
This release has no reference to drilling, sampling, assays or mineralisation.
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Orientation of
data in relation to geological structure
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Whether the orientation of sampling achieves unbiased
sampling of possible structures and the extent to which this is known, considering the deposit type.
If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
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This release has no reference to drilling, sampling,
assays or mineralisation.
This release has no reference to drilling, sampling, assays or mineralisation.
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Sample security
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The measures taken to ensure sample security.
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This release has no reference to drilling, sampling,
assays or mineralisation.
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Audits or reviews
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The results of any audits or reviews of sampling techniques
and data.
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All digital data was quality assured by the geophysical
supervisor, Mr. John Currie.
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Section 2: Reporting of Exploration Results
Criteria
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JORC Code explanation
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Commentary
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Mineral tenement
and land tenure status
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Type, reference name/number, location and ownership
including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
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The Alacrán Project comprises 22 mineral concessions
100% owned by Minera Teck SA de CV, a subsidiary of Teck Resources Limited.
Azure Minerals has an Option to acquire 100% ownership of these concessions by spending US$5 million over four years, subject to Teck having a one- off right to buy back up to 65% ownership.
A 2% Net Smelter Royalty is held by Grupo Mexico. The tenements are secure and are in good standing.
There are no known impediments to obtaining a licence to operate in the area.
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Exploration done
by other parties
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Acknowledgment and appraisal of exploration by other
parties.
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The project area has a history of industrial-scale
commercial mining and small-scale artisanal mining dating back to the early 20th century, which ended shortly after the start of the Mexican Revolution in
1910. After the Revolution ended in the 1920's, the
property was explored intermittently.
The Anaconda Copper Mining Company is known to have done some exploration, including drilling, on the property prior to the late 1960's. Data relating to this work has been located but has yet to be reviewed.
Between 1969 and the early 1980's, the Consejo de Recursos Minerales (Mexican Geological Survey) carried out occasional exploration programs, including drilling 6 holes in 1970 and undertaking geophysical surveys over the Palo Seco and La Morita prospects in
1981.
Grupo Mexico acquired the project after the CRM completed their drilling. Grupo Mexico drilled an additional 26 holes on the project in two phases. The first phase was done in 1991 (24 holes) and the second phase was done in 1997 and 1998 (two holes).
Minera Teck S.A. de C.V., a Mexican subsidiary of Teck Resources Limited acquired the property in 2013 and undertook limited surface exploration.
Azure Minerals acquired the rights to the project in December 2014 through its fully owned Mexican subsidiary company Minera Piedra Azul SA de CV.
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Geology
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Deposit type, geological setting and style of mineralisation.
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Various styles of mineralisation occur on the property.
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Intermediate sulphidation epithermal veins and
stockworks host silver, lead, zinc, copper and gold in Cretaceous volcaniclastic rocks (the La Morita, Palo Seco and Alacrán mines).
Secondary copper oxide and chalcocite mineralisation occur in volcanic rocks.
Primary copper mineralization is hosted in porphyry rocks.
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Drill hole
information
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A summary of all information material to the
understanding of the exploration results including a tabulation of the following information for all Material drill holes:
easting and northing of the drill hole collar
elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar
dip and azimuth of the hole
down hole length and interception depth
hole length.
If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
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This release has no reference to drilling, sampling,
assays or mineralisation
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Data aggregation
methods
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In reporting Exploration Results, weighting averaging
techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values should be clearly stated.
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This release has no reference to drilling, sampling,
assays or mineralisation.
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Relationship
between mineralisation widths and intercept lengths
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These relationships are particularly important in the
reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only
the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').
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This release has no reference to drilling, sampling,
assays or mineralisation.
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Diagrams
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Appropriate maps and sections (with scales) and
tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
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This release has no reference to drilling, sampling,
assays or mineralisation.
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Balanced
reporting
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Where comprehensive reporting of all Exploration Results
is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
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This release has no reference to drilling, sampling,
assays or mineralisation.
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Other substantive
exploration data
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Other exploration data, if meaningful and material, should
be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
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This announcement makes no reference to previous
exploration results.
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Further work
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The nature and scale of planned further work (e.g. tests for
lateral extensions or depth extensions or large-scale step- out drilling).
Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive
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Further work will include LiDAR and orthophoto overflights, Induced Polarization/Resistivity geophysics, mapping, sampling and drilling.
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Azure Minerals Ltd
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EXPLORATION STAGE |
CODE : AZS.AX |
ISIN : AU000000AZS2 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Azure Min. is a copper and gold exploration company based in Australia. Its main exploration properties are SAN FRANCISCO JALISCO, SAN EDUARDO, LOS CHINOS, POZO DE NACHO, EL CUERVO, EL CARNERO, LA TORTUGA-LOS NIDOS, LOS VIBORAS and PROMONTORIO HIDALGO MAGISTRAL in Mexico. Azure Min. is listed in Australia. Its market capitalisation is AU$ 6.2 billions as of today (US$ 4.1 billions, € 3.8 billions). Its stock quote reached its lowest recent point on September 04, 2015 at AU$ 0.01, and its highest recent level on November 19, 2023 at AU$ 4.37. Azure Min. has 1 672 649 984 shares outstanding. |
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