Covering 201 hectares, the San Agustin claim is located in the heart of the Mexican Silver Belt. This district hosts many major operating silver and gold mines (see Figure 1), with some also producing significant quantities of by-product minerals, including zinc, lead and copper.
Importantly, the area immediately around Azure’s San Agustin property is an emerging gold-silver district, with one operating gold mine and a second gold-silver deposit being considered for near-term development.
Canadian company Argonaut Gold1 is operating the El Castillo open pit, heap leach gold mine, located 16km northeast of Azure’s property, which produced 80,000oz in 2015 at a mined head grade of 0.3g/t Au. Argonaut also owns a gold-silver project of the same name as Azure’s project (San Agustin) located 3km northeast of Azure’s San Agustin. Argonaut’s project hosts resources of 840,000 ounces of gold (resource grade of 0.3g/t Au) and 28 million ounces of silver (resource grade of 11g/t Ag). Argonaut will make a production decision on an open pit, heap leach operation on their San Agustin in the second half of 2016.
Both of Argonaut’s deposits are predominantly gold-rich and are described as intermediate sulphidation systems hosted by calcareous clastic rocks. Similar rocks have been described on Azure’s San Agustin property.
San Agustin is located 80km north of the city of Durango (population >600,000) in the state of Durango. The property is served by highways and roads (located 7km from Federal Highway #45) with nearby infrastructure that includes the state power grid, local labour and logistical support.
No prior exploration has been undertaken on this project. Azure will commence reconnaissance exploration later in 2016.
All references to Argonaut Gold and information in respect of that company’s Mexican assets are sourced from the Argonaut Gold website.