Oposura Project (AZS 100%)
Azure acquired immediate 100% ownership of the Oposura Project in August 2017 for a purchase price of US$1,500,000. The previous owner retains a 2.5% NSR royalty.
Oposura is located 150km by road northeast from Hermosillo, the capital city of Sonora where Azure has its Mexican-based exploration and administration office, and 30km by road to the southwest of the town of Moctezuma which has a population of about 5,000.
Oposura hosts multiple zones of massive and banded sulphides (predominantly sphalerite and galena with minor chalcopyrite) containing high grade zinc, lead and silver mineralisation in an interbedded sequence of limestones and volcanic tuffs. The mineralised zone forms a laterally extensive, relatively flat-lying horizon that extends east-west for approximately 1,400m and north-south for 400m. The overall mineralised zone is up to nine metres thick, averages about three metres in true width, and demonstrates good continuity of width and grade.
Azure’s sampling within the underground mine workings confirmed very high grades of zinc, lead and silver, typically being greater than 10% Zn, 10% Pb and 40g/t Ag, with maximum values of 49.6% Zn, 34.1% Pb and 448g/t Ag. Furthermore, many samples from the massive sulphide zones returned copper grades in the range of 0.5% to 1.0% Cu, up to a maximum of 2.6% Cu. (Refer ASX announcement dated 15 August 2017).
Prior to the acquisition of Oposura, the previous owner completed a 16 hole, 994m diamond drilling program. As part of Azure’s due diligence and to ensure that results conform to JORC 2012 guidelines, the Company’s technical team assumed responsibility for sampling and assaying of these drill holes. Significant mineralisation was intersected in most of these drill holes (refer ASX announcement dated 4 September 2017), including the following intercepts:
 High Grade Zones use a 20% Zn+Pb lower grade cut-off and no top cut
 Overall Mineralised Zones use a 10% Zn+Pb lower grade cut-off and no top cut
Azure’s first drilling program at Oposura is designed to enable the Company to complete a Mineral Resource estimate in the first quarter of 2018. The drilling will cover an area of 1,400m x 400m to confirm the extent of the mineralised zone, as defined by historical exploration.
Based upon historical exploration reports, the Company has announced an Exploration Target of:
2.5 – 3.0 million tonnes grading 10.0% – 12.0% Zn+Pb*
*This Exploration Target (refer ASX announcement dated 18 September 2017) is conceptual in nature, but is based on reasonable grounds and assumptions. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
Azure has constrained this Exploration Target to the eastern half of the project area where zones of massive sulphide mineralisation outcrop extensively over an east-west strike length of approximately 1,400m and where historical drilling (approximately 100 diamond core holes) and exploratory underground mine development has demonstrated the presence and continuity of the mineralised zone over 400m in a north-south direction.
Additionally, the project demonstrates good upside potential, including:
- extensions of the Oposura mineralised zones further to the north;
- repetitions of mineralisation in the faulted down-thrown block to the west;
- shear zones containing silver-rich quartz veining in the east of the property;
- precious and base metal mineralisation associated with old mine workings in the west of the property.
Azure is looking forward to completing the resource drill out program, metallurgical test work and various mine development studies during the 2017-18 financial year.