Barton Gold & Base Metals Project

(100% Azure)

The Barton Gold and Base Metals Project lies adjacent to the historical gold mining town of Kookynie, approximately 40km south of Leonora in the Eastern Goldfields region of Western Australia.

Azure holds a large and mostly contiguous, strategically situated portfolio of eight tenements covering 888km2 within the gold rich Kookynie district and southern extensions (see Figure 1). The landholding comprises:

• Four granted Exploration Licences (totalling 472km2); and
• Four Exploration Licence Applications (totalling 416km2) where Azure is the sole applicant, and the tenements are in the granting process.

This sizeable land package covers a contiguous 88km of strike length of the prime Kookynie greenstone sequence, which hosts numerous historical gold mines and current gold deposits. Azure’s landholding covers multiple, under-explored mineralised trends with greenstone belts, adjacent granite margins and favourable structural settings that are considered prospective for hosting significant gold and base metals mineralisation.

Gold

Since the 1890s, the Kookynie district has produced more than 1.1Moz of gold from open pit and underground mining and currently hosts additional resources of more than 4Moz of gold.

Several large and growing gold deposits and significant gold development projects are located in the Kookynie district close to Azure’s projects, including:

• Genesis Minerals Ltd (ASX: GMD): Ulysses Gold Project (2,017,000oz gold resource), including the Puzzle North gold deposit (232,000oz gold resource) which adjoins the southern boundary of Azure’s granted E40/393;
• Saturn Metals Ltd (ASX: STN): Apollo Hill Gold Project (1,469,000oz gold resource); and
• Recent high-grade gold discoveries by Metalicity Ltd (ASX:MCT) and other companies.

Historical exploration and mining in the Kookynie district mostly focused on areas of outcrop and the immediate surrounds. Due to extensive soil-covered terrain within the Barton project area, very little exploration has been carried out and most of the previously undertaken soil sampling and drilling was too shallow and ineffective in testing for bedrock-hosted gold mineralisation.

Azure is undertaking bedrock-focused drilling to test for gold mineralisation at Daisy Corner and other structural settings associated with cross-cutting shears and fault zones. The Company’s maiden drill program at Barton comprised 21 Reverse Circulation (RC) holes for 3,473m targeting northern mineralised extensions of Genesis Minerals’ Puzzle North gold discovery.

Azure’s drilling covered 800m of potential strike length of the contact between the greenstone sequence and granitic rocks to the northwest of the Azure-Genesis tenement boundary (see Figure 2) and numerous holes intersected anomalous gold mineralisation. Follow-up work is planned.

Base Metals

The southern part of the Barton tenement package (see Figure 1) is considered prospective for base and precious metals mineralisation of the Volcanogenic Massive Sulphide (VMS)-style (being copper, zinc, lead, gold and silver). Minor historical exploration has been undertaken over the past 40 years, including airborne geophysics, geological mapping, and two episodes of drilling (Western Mining Corporation in the 1980s and Rubianna Resources Ltd in 2013).

Azure personnel have inspected the areas of drilling and identified drill spoils (still in good condition) from the 2013 RC drilling program. Several holes were drilled beneath outcropping gossans and intersected massive and other forms of sulphide mineralisation. Drill spoil samples containing sulphide mineralisation were tested with a handheld portable XRF which confirmed the presence of anomalous base metal mineralisation.

This area has all the hallmarks of a highly prospective, yet under-explored project and Azure’s exploration team believes that there is potential to discover significant base metal and gold mineralisation by utilising modern geophysical techniques such as Electro-Magnetic and Induced Polarisation surveys, detailed surface mapping and sampling, followed by targeted drilling.