Alacrán Project (AZS 100%): Silver-Gold-Copper
In December 2014, Azure entered into an agreement whereby Azure could acquire 100% ownership of the Alacrán Project from Minera Teck S.A. de C.V. (Teck), a 100%-owned subsidiary of Canada’s largest diversified resource company, Teck Resources Limited. Teck would retain a back-in right which could be exercised within two months of Azure reaching the earn-in milestone.
Alacrán is ideally located within the Laramide Copper Province, North America’s most prolific copper-producing district, and is close to several large operating copper mines, including only 12km from the world class, giant Cananea Copper Mine. Alacrán offers significant potential for hosting large porphyry copper deposits (Teck’s principal focus) and high-grade precious metal deposits.
Within two years of entering the agreement, Azure had met the expenditure requirements and thereby earned 100% ownership of the Alacrán Project. During this period, Azure discovered two outstanding epithermal silver and gold deposits – Mesa de Plata and Loma Bonita – which together host resources of 32Moz silver and 150,000oz gold.
In December 2016, Teck exercised its back-in right and for the following 2½ years carried out exploration for porphyry copper mineralisation, particularly at the Cerro Alacrán prospect. In May 2019, Teck withdrew from Alacrán and full 100% ownership and control reverted back to Azure.
Azure believes that, in addition to Mesa de Plata and Loma Bonita, Alacrán has the potential to host more high-grade precious and base metal deposits. Now that Azure has regained 100% ownership and full control of the project, further exploration specifically targeting these commodities will be a high priority.
Mesa de Plata
Silver mineralisation at Mesa de Plata is hosted in flat-lying, silicified volcanic rocks and residual quartz (vuggy silica) which form a prominent ridge. Mineralisation starts at surface with true thicknesses of up to 60 metres and extends throughout the deposit with excellent internal continuity.
The JORC Mineral Resource, 100% of which is in the Measured and Indicated categories, comprises 27.4 million ounces of silver, with the near-surface High Grade Zone containing 15.5 million ounces of silver at a grade of 275g/t.
Table 1: Mesa de Plata Mineral Resource (ASX: 1 December 2016)
The Loma Bonita silver-gold deposit is located 200 to 500 metres east of the Mesa de Plata silver deposit. Significant widths of silver and gold mineralisation are hosted in silicified volcanics and vuggy silica, commencing at or near to surface. The JORC Mineral Resource comprises approximately 5Moz of silver and 150,000oz of gold and mineralisation remains open in all directions.
Table 2: Loma Bonita Mineral Resource (ASX: 21 December 2016)
At Cerro Alacrán historical and recent drilling, has intersected significant widths of supergene and primary copper mineralisation, demonstrating that potential exists for the delineation of a large, porphyry-associated copper deposit.
To date, drilling (33 historical and 16 recent diamond core holes) has tested an area of approximately 1,500m x 1,000m, with most holes intersecting supergene copper mineralisation and some deeper holes entering into the primary mineralisation zone. Supergene mineralisation consists of copper oxides and chalcocite and the underlying primary sulphide mineralisation is predominantly chalcopyrite.
The overall size and grade and the areal and depth extents of the Cerro Alacrán supergene and primary copper mineralisation are yet to be defined, remaining open and untested in all directions and at depth, and further drilling is required.
The confirmation of significant widths of copper mineralisation at Cerro Alacrán in a district which hosts many large copper mines and deposits, supports Azure’s belief that this prospect is significantly underexplored and that further exploration, including geophysics and additional drilling, will identify more mineralisation.