Mr. Duane Poliquin reports
AZUCAR HITS 118.0 M OF 0.70 G/T AU AND 0.23% CU AT NORTE ZONE, PROVIDES DRILLING UPDATE FOR EL COBRE PROJECT, MEXICO
Azucar Minerals Ltd. has released results from its continuing drilling program at the El Cobre porphyry copper-gold project in Veracruz state, Mexico. Drilling is currently under way at the Norte zone and at the very north end of the Villa Rica target, which is located south of the Norte zone. Results received to date from the continuing drilling program include the following highlights.
Hole EC-18-049,Norte zone:
From 243.50 metres to 593 metres -- 349.50 metres of 0.22 gram per tonne gold and 0.15 per cent copper; Including 315.50 metres to 359.50 metres -- 44 metres of 0.47 gram per tonne gold and 0.32 per cent copper; And 317.50 metres to 327.50 metres -- 10 metres of 0.88 gram per tonne gold and 0.47 per cent copper; And 341.50 metres to 351.50 metres -- 10 metres of 0.52 gram per tonne gold and 0.39 per cent copper.
Hole EC-18-051,Norte zone:
From 314 metres to 541 metres -- 227 metres of 0.37 gram per tonne gold and 0.14 per cent copper; Including 332 metres to 344 metres -- 12 metres of 0.80 gram per tonne gold and 0.32 per cent copper; And 387.50 metres to 463 metres -- 75.50 metres of 0.61 gram per tonne gold and 0.19 per cent copper; And 396 metres to 408.50 -- 12.50 metres of 1.17 grams per tonne gold and 0.33 per cent copper;From 603 metres to 721 metres -- 118 metres of 0.70 gram per tonne gold and 0.23 per cent copper; Including 643 metres to 663 metres -- 20 metres of 0.96 gram per tonne gold and 0.31 per cent copper; And 703 metres to 709 metres -- six metres of 1.09 grams per tonne gold and 0.34 per cent copper.
An extensive geologic review of drill and exploration data has resulted in several key interpretations, including the following:
The porphyry systems identified to date at the El Cobre project are all shallowly eroded, with the depth potential intact. At the Porvenir and Norte zones, erosion is deepest and has exposed the very top of the mineralized part of these systems, including, at Norte, the tops of high-grade zones open to depth. The Villa Rica system is less eroded, and only the top of the mineralized system and intrusive complex has been cut in drilling to date.At the Norte zone, statistical analysis of the metal distribution shows that the mineralization is trending northeast-southwest, a different orientation to that thought and planned for with previous drilling.The enriched chalcocite zone intercepted in previous Villa Rica drilling (hole EC-17-041, 94 metres of 1.36 per cent copper and 0.07 gram per tonne gold) does not appear to relate to hypogene mineralization intersected to date at Villa Rica and most likely has been transported from an unidentified hypogene source.
Stepout and infill drilling at Norte has been modified based on these observations. At Norte, several potential high-grade zones have been mapped in past drilling and current drilling is now under way to intersect these zones at depth, with holes also planned to define the limits of mineralization along the new trend identified. The company anticipates drilling to be under way with one or more rigs throughout the course of 2018 to test all targets currently defined.
Duane Poliquin, chairman of Azucar Minerals, commented: "We are very excited to commence what we anticipate being a comprehensive two-year intensive drill program at the El Cobre project. The results over the past two years have shown the potential for multiple porphyry centres over a five-kilometre strike. We look forward to reporting drill results as we move forward."
About the El Cobre project
The El Cobre project has a total area of approximately 7,000 hectares and is located adjacent to the Gulf of Mexico, about 75 kilometres northwest of the major port city of Veracruz, Mexico, in an area of excellent infrastructure. The project is situated 200 metres above sea level, with extensive road access. El Cobre is located less than 10 kilometres from a power plant, highway, gas line and other major infrastructure. Major power lines cross the property area.
The four copper-gold porphyry targets currently known within the El Cobre project, Encinal, El Porvenir, Norte and Villa Rica, are defined by distinct copper-gold soil anomalies, discrete and positive magnetic features, and a large induced polarization chargeability anomaly. The largest target area is the Villa Rica zone and, apart from preliminary work in 2017, the zone has never been drill tested in past programs. The results of the targets to date are summarized herein.
El Porvenir zone -- drilling has demonstrated that the system persists to at least 400 metres of depth. Significant copper and gold grades were intersected, such as 0.16 per cent Cu and 0.39 gram per tonne Au over 290 metres in hole DDH04CB1. In addition, hole EC-13-004 intersected 0.23 per cent Cu and 0.36 gram per tonne Au over 106 metres to a depth of 504 metres, again indicating potentially significant mineralization at depth. Results from minimal drilling in 2017 include hole EC-17-040, which intersected 108 metres grading 0.88 gram per tonne Au and 0.29 per cent Cu, and hole EC-17-044, which intersected 40.25 metres grading 0.5 gram per tonne Au and 0.25 per cent Cu.
Encinal zone -- hole CB5 intersected a highly altered breccia pipe containing fragments of stockwork veining and porphyry mineralization, across which 18.28 metres returned 1.42 grams per tonne Au and 0.10 per cent Cu. The breccia pipe occurs in a large alteration zone, induced polarization chargeability high and magnetics low, which has not been tested to depth. On June 19, 2017, Azucar Minerals confirmed that a new area of exposed stockwork quartz veining and gold mineralization had been identified in the Encinal zone. On June 29, 2017, Azucar Minerals released the results of initial drilling on this exposed stockwork (hole EC-17-025), which included results of 34.47 metres grading 0.73 gram per tonne Au and 0.20 per cent Cu. Azucar Minerals is currently following up these results with some additional drilling at Encinal.
Norte zone -- all five holes drilled in the Norte zone prior to 2016 intersected porphyry-style mineralization. Hole 08-CBCN-022, one of the deepest holes drilled at Norte in 2008, returned values of 0.14 per cent Cu and 0.19 gram per tonne Au over 259 metres, and hole 08-CBCN-19 intersected 41.15 metres averaging 0.42 gram per tonne gold and 0.27 per cent copper to the end of the hole at 187.45 metres. Drilling at the Norte zone in 2016 and 2017 has resulted in the highest-grade intersections to date at the El Cobre project, including 114.6 metres grading 1.33 grams per tonne Au and 0.48 per cent Cu (hole EC-17-018, please see press release dated April 5, 2017), 80.50 metres grading 1.34 grams per tonne Au and 0.46 per cent Cu (hole EC-16-012, please see press release dated Oct. 24, 2016), 70.45 metres grading 2.32 grams per tonne Au and 0.59 per cent Cu (hole EC-17-026, please see press release dated July 25, 2017), and 534.90 metres grading 0.9 gram per tonne Au and 0.30 per cent Cu (hole EC-17-029, please see press release dated Aug. 15, 2017). Since the Norte zone discovery, Azucar Minerals has been carrying out a systematic drill campaign to define this target. Future Norte drilling will focus on stepout and infill drilling, in addition to testing the system to depth.
Villa Rica zone-- the Villa Rica zone is a roughly 2.5-kilometre-by-one-kilometre area of hydrothermal alteration defined by a strong north-northwest-trending magnetic chargeability high and associated copper-gold soil geochemical anomalies. Past mapping and sampling defined several areas of exposed porphyry mineralization within the Villa Rica target area, including the Raya Tembrillo zone and the Naranjo zone, both at the north end of the Villa Rica zone. Initial drilling in 2017 on the Raya Tembrillo zone intersected two styles of mineralization: hypogene copper-gold porphyry mineralization (115 metres of 0.57 gram per tonne gold and 0.27 per cent copper, please see press release dated Nov. 28, 2017) and near-surface, exotic, enriched copper mineralization with an apparent tabular distribution (94 metres of 1.36 per cent copper, please see press release dated Dec. 13, 2017).
Larry Segerstrom, MSc (geology), PGeo, a director of the company, is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the contents of this news release. The porphyry mineralization reported in this news release is associated with broad areas of alteration and stockwork veining. True widths cannot be determined at this time. The analyses reported were carried out at ALS Chemex Laboratories of North Vancouver using industry standard analytical techniques. For gold, samples are first analyzed by fire assay and atomic absorption spectroscopy (AAS). Samples that return values greater than 10 grams per tonne gold using this technique are then reanalyzed by fire assay but with a gravimetric finish. For copper, samples are first analyzed by inductively coupled plasma-atomic emission spectroscopy (ICP-AES), with four-acid digestion. Samples that return values greater than 10,000 g/t copper using this technique are then reanalyzed by HF-HNO3-HCLO4 digestion with HCL leach and ICP-AES finish. Blanks, field duplicates and certified standards were inserted into the sample stream as part of Azucar's quality assurance and control program, which complies with National Instrument 43-101 requirements. An NI 43-101-compliant technical report on the El Cobre project entitled, "Technical Report on the El Cobre Property," was filed in May, 2015, and can be obtained from SEDAR.
About Azucar Minerals Ltd.
Azucar Minerals is an exploration company with a mandate to thoroughly explore the El Cobre project in Veracruz, Mexico, a 7,000-hectare property which covers multiple gold-rich porphyry targets, as demonstrated by recent drilling. Azucar Minerals is permitted and financed for active drill campaigns in 2018 and 2019. Azucar Minerals holds a 100-per-cent interest in the El Cobre project, subject to net smelter return (NSR) royalty interests, assuming production from the property exceeds 10,001 tonnes per day of ore, totalling 2.25 per cent, which can be reduced to 2 per cent though the payment of $3-million (U.S.).
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