Andover Mineral Resources

Mineral Resource Estimates (“MRE”) have been completed for the Andover Deposit and the Ridgeline Deposit. These two nickel-copper-cobalt sulphide deposits are only 200m apart (see Figure 1) and are located in the southwest corner of the Andover project area.

The Andover Deposit has an MRE (JORC 2012) of:

• 4.6Mt @ 1.11% Ni, 0.47% Cu and 0.05% Co (1.41% NiEq) for 51,700t of contained Nickel, 21,700t of contained Copper and 2,290t of contained Cobalt at a cut-off grade of 0.5% Ni (see Table 1 and refer ASX: 30 March 2022 for full details).

The Ridgeline Deposit has an MRE (JORC 2012) of:

• 1.3Mt @ 1.11% Ni, 0.46% Cu and 0.05% Co (1.47% NiEq) for 14,700t of contained Nickel, 6,100t of contained Copper and 640t of contained Cobalt at a cut-off grade of 0.5% Ni (see Table 2 and refer ASX: 8 February 2023 for full details).

From a nickel point of view, Azure is progressing a dual-pathway strategy, focused on expanding the mineral resource base through exploration and discovery while continuing to advance the Andover and Ridgeline Ni-Cu-Co deposits through feasibility studies towards a production decision. Successful delivery of this strategy will grow Andover into a major nickel-copper-cobalt sulphide mining and processing operation with multiple deposits feeding a central processing plant.

Figure 1: Ridgeline and Andover Ni-Cu-Co deposits

Andover Deposit – Mineral Resource Estimate

The MRE is current at 30 March 2022 and reported by classification in Table 1.

Table 1: Andover Deposit Mineral Resource Estimate by classification

(Reported above a 0.5% Ni cut-off)

Notes:

• Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee Code –JORC 2012 Edition).
• Data is reported to significant figures and differences may occur due to rounding.
• Mineral Resources have been reported above a cut-off grade of 0.5 % nickel.
• The NiEq calculation represents total metal value for each metal summed and expressed in equivalent nickel grade and tonnes. Commodity prices assumed in the calculation are US$: nickel $19,366.6/t; copper $9,089.8/t; cobalt $63,107.9/t. The following metallurgical recovery assumptions are based on metallurgical test work and Azure considers they have a reasonable prospect to be achieved: 79% nickel recovery; 70% copper recovery; 68% cobalt recovery.
• NiEq equation = Ni (%) + (Cu (%) x ((Cu $/t x Cu recovery x 0.01) / (Ni $/t x Ni recovery)) + (Co (%) x ((Co $/t x Co recovery x 0.01) / (Ni $/t x Ni recovery))

Ridgeline Deposit – Mineral Resource Estimate

The MRE is current at 23 January 2023 and reported by classification in Table 2. 

Table 2: Ridgeline Deposit Mineral Resource Estimate by classification

(Reported above a 0.5% Ni cut-off)

Notes:

• Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves (The Joint Ore Reserves Committee Code – JORC 2012 Edition).
• Data is reported to significant figures and differences may occur due to rounding.
• Mineral Resources have been reported above a cut-off grade of 0.5% Ni.
  The NiEq calculation represents total metal value for each metal summed and expressed in equivalent nickel grade and ounces. Commodity prices assumed in the calculation are US$: nickel $19,366.6/t; copper $9,089.8/t; cobalt $63,107.9/t.
• The following metallurgical recovery assumptions are based on metallurgical testwork, and Azure considers they have a reasonable potential to be recovered and sold: 80% nickel recovery; 77% copper recovery; 77% cobalt recovery.
• NiEq formula = Ni (%) + (Cu (%) x (Cu $/t x Curecovery x 0.01) / (Ni (%) x Nirecovery x 0.01)) + (Co (%) x ((Co $/t x Corecovery x 0.01) / (Ni $/t x Nirecovery x 0.01)).

Ridgeline Deposit Mineral Resource Estimate

In January 2023, Azure announced an MRE for the Ridgeline Deposit of:

Image 1: High grade, massive Ni-Cu-Co sulphide mineralisation in Ridgeline drill hole ANDD0134

Competent Persons Statement

The information in this report that relates to Mineral Resources for the Andover Deposit was first released to the ASX on 30 March 2022 and is available to view on www.asx.com.au. 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, and that all material assumptions and technical parameters underpinning the estimates in the announcement continue to apply and have not materially changed.

The information in this report that relates to Mineral Resources for the Ridgeline Deposit was first released to the ASX on 8th February 2023 and is available to view on www.asx.com.au. 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, and that all material assumptions and technical parameters underpinning the estimates in the announcement continue to apply and have not materially changed.

Andover Development Studies

Mineral Resources

CSA Global completed the maiden Mineral Resource Estimate (MRE) for the Andover Ni-Cu-Co Deposit with results being released to the ASX on 30 March 2022 (see Table 1).

CSA Global completed the maiden Mineral Resource Estimate (MRE) for the Ridgeline Ni-Cu-Co Deposit with results being released to the ASX on 8 February 2023 (see Table 1).

Geotechnical

The geotechnical assessment at the Andover Deposit has been completed to a Scoping Study level and has demonstrated that the deposit sits within a competent host rock.

Mining

Mine engineering for the Andover Deposit comprises the following work components:

• Review of potential surface infrastructure locations, portal locations and other support infrastructure.
• Preliminary underground infrastructure designs have been completed.
• Preliminary Mineable Stope Optimisation completed and will continue to be refined as final parameters are received for processing and off-take arrangements.

Processing

The processing component of the development studies includes:

• Metallurgical variability testwork program on the three ore types defined within the Andover Deposit completed.
• Process Design Criteria (including mass balance), Process Flow Diagrams, and Process Description progressing.

Environmental Monitoring and Assessment

Key environmental consultants are undertaking a broad evaluation of the Andover Project area to assist Azure with selection of disturbance areas for major infrastructure and provide a baseline for the design of the environmental monitoring program, which will be undertaken as part of the Environmental Assessment to support an application to mine. This currently includes the following monitoring programs:

• Terrestrial flora and vegetation;
• Vertebrate terrestrial fauna and habitat;
• Aquatic fauna and habitat;
• Invertebrate terrestrial fauna; and
• Subterranean fauna.

Andover Lithium Exploration

Overview

Azure’s flagship Andover Lithium Project is delivering company-making results, with a current Exploration Target which places Andover amongst the world’s top lithium exploration projects.

The Exploration Target for the Andover Lithium Project encompasses an estimated range of potential mineralisation of:

100 – 240 million tonnes grading at 1.0 – 1.5% Li2O* (see Table 1 for details)

*The potential quantity and grade of the Exploration Target is conceptual in nature. 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.

Exploration

Azure initially recognised the lithium potential on the Andover Project by observing outcropping pegmatites containing spodumene during regional nickel exploration. A lithium-focused exploration team (separate from the Andover nickel team) commenced work in early 2022, undertaking historical data research, aerial photo and airborne radiometric interpretation, reconnaissance geological mapping, and surface geochemical sampling.

The assessment commenced by investigating historical reports and Mines Department records that referenced pegmatites in the Andover district. According to these historical records, pegmatites within the Andover Complex were exploited by artisanal mining in the 1950s and 1960s, producing minor to moderate amounts of beryl (including emerald), tin (cassiterite) and tantalum (tantalite). The lithium-bearing minerals spodumene and lepidolite were also reported.

First-pass exploration program was highly successful, identifying widespread lithium-bearing pegmatites across the project area. Azure implemented a multi-pronged strategy to fast-track its lithium-focused exploration, including helicopter-supported and ground-based sampling of outcrop pegmatites and historical mine workings in preparation for lithium-focused drilling.

Several hundred outcropping pegmatites that form a large-scale swarm were identified within an area that extends over 9km (east-west) and up to 5km (north-south) (see Figure 1). The pegmatites typically trend in a southwest to northeast orientation with a moderate dip to the northwest. Surface exposures range in size up to 200 metres across and two kilometres in length.

Figure 1: Mapping of a large-scale pegmatite swarm located within the Andover Project

The orientation of the pegmatites is generally parallel with Azure’s richly endowed Nickel-Copper-Cobalt (Ni-Cu-Co) Southern Mineralised Corridor, with most pegmatites lying within or adjacent to this mineralised horizon. It is interpreted that at the time of their emplacement, the pegmatites were likely utilising pre-existing structures that also controlled the earlier mineralising event responsible for the formation of the Andover Ni-Cu-Co sulphide deposits.

Assays from the reconnaissance pegmatite outcrop sampling program delivered numerous highly encouraging results, with multiple samples of spodumene-rich pegmatites returning lithium grades in the range of 2% Li2O up to 5% Li2O (ASX: 19 October 2022, 14 November 2022, 20 January 2023 & 21 March 2023) (see Figure 2).

The highly anomalous surface sampling results were further validated through the intersection of a pegmatite containing lithium mineralisation in diamond drill hole ANDD019 (ASX: 13 February 2023). The hole returned a strong lithium-rich intersection of 1.51% Li2O over 7.2m, including an internal high-grade zone of 1.87% Li2O over 3.1m.

This provided the Company with confirmation that spodumene-rich pegmatites observed at surface had the potential to host significant lithium mineralisation at depth and provided the impetus for Azure to accelerate its lithium-focused exploration efforts by implementing a maiden drill campaign.

Figure 2: Spodumene-rich pegmatite

Lithium-focused exploration drilling utilising diamond core and RC drill rigs commenced in March 2023 focused in Target Area 1 (see Figure 1). By the end of August 2023, the Company had completed 69 diamond holes for 24,827m and 86 RC holes for 17,238m at this prospect.

Drilling has confirmed that pegmatites in Target Area 1 contain very broad zones of impressively high-grade lithium mineralisation (see Figure 3), many in excess of 100m width, with excellent continuity of mineralisation laterally along strike and up- and down-dip. These mineralised zones extend for more than 2,000m along strike and down-dip from surface to vertical depths in excess of 400m.

Figure 3: High-grade lithium samples from hole ANDD0208 within 22.8m @ 3.57% Li2O

See following table for some of the better mineralised drill intersections.

On the basis of these drill results, Azure released a maiden Exploration Target for the Andover Lithium Project (ASX: 7 August 2023) with an estimated range of potential of:

100 – 240 million tonnes grading at 1.0 – 1.5% Li2O*

*The potential quantity and grade of the Exploration Target is conceptual in nature. 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.

Broadest mineralised drill intersections include ^123456:

• 54.4m @ 1.07% Li2O from 310.5m in ANDD0206 (~44.6m True Width); including:
  • 7.4m @ 1.93% Li2O from 357.5m (~6.1m True Width)
• 52.1m @ 0.91% Li2O from 22.3m in ANDD0208 (~46.0m True Width); including:
  • 14.4m @ 1.59% Li2O from 22.3m (~12.7m True Width); and
  • 8.6m @ 1.56% Li2O from 65.8m (~7.6m True Width)
• 105.0m @ 1.26% Li2O from 256.3m in ANDD0208 (~89.0m True Width); including:
  • 22.8m @ 3.57% Li2O (~19.3m True Width)
• 52.5m @ 1.36% Li2O from 14.1m in ANDD0210 (~49.9m True Width); including:
  • 28.3m @ 1.83% Li2O from 14.8m (~26.9m True Width)
• 63.7m @ 1.15% Li2O from 218.8m in ANDD0210 (~53.4m True Width); including:
  • 34.7m @ 1.59% Li2O from 220.2m (~29.1m True Width)
• 90.2m @ 1.23% Li2O from 172.1m in ANDD0214(~77.4m True Width); including:
  • 25.8m @ 1.53% Li2O from 210.4m (~22.1m True Width)
• 112.4m @ 1.05% Li2O from 263.3m in ANDD0215 (~110.7m True Width); including:
  • 13.5m @ 1.55% Li2O from 280.1m (~13.3m True Width); and
  • 59.0m @ 1.24% Li2O from 316.7m(~58.2m True Width)
• 32.7m @ 1.32% Li2O from 255.6m in ANDD0217 (~32.3m True Width) including:
  • 20.7m @ 1.67% Li2O from 256.0m (~20.5m True Width)
• 209.4m @ 1.42% Li2O from 219.0m in ANRD0017 (~134.6m True Width), including:
  • 126.2m @ 1.72% Li2O from 219.0m (~81.1m True Width) which includes:
    • 56.1m @ 2.00% Li2O from 257.0m (~36.1m True Width); and
  • 19.7m @ 1.54% Li2O from 401.6m (~12.7m True Width)
• 100.2m @ 1.24% Li2O from 101.5m in ANDD0221 (~92.0m True Width), including:
  • 28.0m @ 1.86% Li2O from 126.9m (~26.0m True Width), and
  • 31.7m @ 1.44% Li2O from 170.0m (~29.0m True Width)
• 101.3m @ 1.21% Li2O from 264.7m in ANDD0223 (~95.5m True Width), including:
  • 64.1m @ 1.63% Li2O from 284.8m (~60.4m True Width)
• 183.1m @ 1.25% Li2O from 170.5m in ANDD0228 (~123.3m True Width), including:
  • 58.9m @ 1.46% Li2O from 170.5m (~39.7m True Width); and
  • 30.0m @ 1.55% Li2O from 284.0m (~20.2m True Width); and
  • 11.2m @ 1.85% Li2O from 332.9m (~7.5m True Width)
• 167.7m @ 1.31% Li2O from 168.4m in ANDD0238 (~112.2m True Width), including:
  • 89.1m @ 1.55% Li2O from 168.4m (~59.6m True Width) which includes:
    • 30.5m @ 2.03% Li2O from 215.3m (~20.4m True Width)
  • 12.5m @ 1.57% Li2O from 274.5m (~8.3m True Width)
• 100m @ 1.52% Li2O* from 194m in ANRC0011 (~57.4m True Width), (* hole ended in mineralisation), including:
  • 21m @ 1.67% Li2O from 210m (~12.0m True Width), and:
  • 46m @ 1.77% Li2O from 248m (~26.4m True Width)

¹ See ASX announcement dated: 13 June 2023
² See ASX announcement dated: 20 June 2023
³ See ASX announcements dated: 30 June 2023
⁴ See ASX announcement dated: 14 July 2023
⁵ See ASX announcement dated: 4 August 2023
⁶ See ASX announcement dated: 21 August 2023

Andover Nickel Exploration

Exploration for nickel-copper-cobalt (Ni-Cu-Co) sulphide mineralisation at Andover utilises the following exploration methods:

• Surface geological mapping and sampling;
• Airborne magnetic, radiometric and electromagnetic (VTEM) surveys;
• Surface fixed-loop electromagnetic (FLEM) surveys;
• Diamond core drilling (200 holes for +80,000m to date); and
• Downhole electromagnetic (DHEM) surveying in the drill holes.

More than 60 VTEM electromagnetic conductors have been identified (see Figure 1). Follow-up FLEM surveying over 12 of the VTEM anomalies confirmed the presence of bedrock-hosted electromagnetic conductors.

Figure 1: VTEM (electromagnetic) image showing Ni-Cu-Co prospects on the Andover Project

Azure’s diamond drilling has targeted EM conductors in six locations and successfully intersected significant Ni-Cu-Co sulphide mineralisation at the Andover, Ridgeline, Skyline and Seaview prospects.

Mineralisation comprises massive, semi-massive, matrix, blebby and disseminated pentlandite (nickel sulphide), chalcopyrite (copper sulphide) and pyrrhotite (iron sulphide) hosted in a visually distinctive intrusive rock that crosscuts the older mafic and ultramafic rocks.

These mineralised occurrences are mostly contained within a southwest-northeast trending corridor that has been well-defined over four kilometres from the Ridgeline and Andover deposits in the west through to Skyline to Seaview in the east (see Figure 2).

The prospective horizon extends further to the northeast, for at least another six kilometres, with numerous additional anomalies (for example, VC-24, 31, 32 and 55) considered priority targets for drill testing.

Figure 2: Andover Project – schematic geology, deposits and prospects

Andover Gallery