Promontorio (AZS 100%)
Promontorio is located in the northern Mexican state of Chihuahua and comprises four adjoining mineral concessions totalling 10,520 hectares. All four of these concessions are 100%-owned by Azure.
The property is situated within a district containing numerous, multi-million-ounce gold-silver mines currently in operation, including the Ocampo, Pinos Altos, Coñcheno, Mulatos and Dolores mines, all located within 100km of the project.
Azure has been exploring Promontorio since 2008 with considerable success. Several different styles of precious and base metal mineralisation have been identified, including:
- high sulphidation epithermal (copper-gold-silver);
- hydrothermal breccia (gold-silver); and
- porphyry-hosted (copper-gold).
Potential deposit sizes for these mineralisation styles range from large, bulk-tonnage resources to more modest-sized, high grade bodies, which bodes well for large scale, long-life mining operations.
Azure’s exploration defined the Promontorio and discovered the Cascada deposits (see tables below and ASX announcements dated 10 May 2013 and 17 May 2015 respectively for full details of JORC Mineral Resources).
Hosted within high-sulphidation epithermal and hydrothermal breccia systems, these mineralised bodies are sourced from an underlying copper-mineralised porphyry. The wider Promontorio project area is recognised as having excellent potential for hosting more precious and base metal deposits.
During 2015 and 2016, Promontorio was explored by Kennecott Exploration, a subsidiary of the Rio Tinto Group, under an Earn-in and Joint Venture Agreement signed between Azure and Kennecott in 2014. Not only did this Agreement with Kennecott significantly accelerate exploration activities, it also brought the high level technical expertise and experience of the Rio Tinto Group to the project.
Drilling completed by Kennecott comprised nine diamond core holes (APR-DD-124 to 132) for 8,784m. Results demonstrated significant levels of copper, gold and silver mineralisation in a porphyry setting.
The holes tested for porphyry-hosted copper-gold mineralisation below the high sulphidation epithermal copper-gold-silver deposits of Promontorio and Cascada defined by Azure. Significant grades of copper, gold and silver mineralisation were intersected in all holes drilled.
The presence of a mineralised porphyry system was confirmed with intrusive rocks hosting well-developed quartz veining and fracture stockwork zones and prominent breccia phases (including hydrothermal +/- tourmaline). Copper sulphide minerals chalcopyrite and bornite are present in disseminated, vein and fracture filling forms. The distribution and zonation of alteration mineral assemblages confirm this has all the hallmarks of a classic mineralised porphyry system.
Having spent approximately US$4 million on exploration and identifying the presence of a copper porphyry system, Kennecott advised in January 2017 of their decision to discontinue their involvement in the project. Pursuant to the terms of the agreement, Azure resumed 100% ownership and control of the Promontorio Project and is currently seeking a new partner to explore this project.