Azure Minerals Limited (ASX: AZS) announced that it has entered into two Tenement Sale and Exploration Joint Venture Agreements with legendary prospector Mark Creasy to acquire Andover nickel-copper project, and the Turner River, Meentheena, and Coongan gold projects in the Pilbara region of Western Australia.
The company reported that it has inked an agreement to acquire a 60% interest in the Andover nickel-copper project and another to acquire 70% interests in the Turner River, Meentheena, and Coongan Gold Projects.
Azure reported that it has received binding commitments from institutional and sophisticated investors to raise $4.0M at $0.10 per Share via a share placement to support initial exploration activities on these new West Australian projects.
The Company said that its largest shareholder, Deutsche Balaton Aktiengesellschaft will participate in the Placement, subject to the receipt of shareholder approval.
Andover nickel-copper project
The Andover nickel-copper project hosts nickel-copper sulphide mineralisation discovered by Creasy Group in 2018. It is located 35km southeast of Karratha and immediately south of Roebourne.
Creasy Group had drilled seven RC holes (1,126m) in 2018 to test four targets characterised by coincident versatile time domain electromagnetic system (VTEM) and ground electromagnetic (EM) anomalies plus surface gossans containing anomalous nickel and copper.
Three holes testing two separate targets = intersected significant nickel and copper sulphide mineralisation at shallow depths, with the best being ADRC002: 7m @ 2.62% Ni & 0.65% Cu within 26m @ 1.03% Ni & 0.46% Cu from 43m; ADRC006: 2m @ 2.10% Ni & 0.44% Cu from 15m; and ADRC001: 4m @ 1.10% Ni & 0.80% Cu from 6m and 2m @ 1.77% Ni & 0.53% Cu from 62m.
Follow-up diamond drilling on these mineralised intersections was recommended at the time, however no further drilling has been carried out to date. Multiple other EM targets and surface gossans remain untested throughout the 70km2 property.
Azure plans diamond drilling to follow-up these two separate nickel-copper occurrences and to test additional geophysical and gossan targets.
Turner River gold project
The Turner River Gold Project comprises two unexplored Exploration Licence applications covering 450km2 located just south of Port Hedland and within 7 kilometres of De Grey Mining’s Mallina Gold Project at the closest point.
Turner River is an unexplored 450km2 project with the right geology and structural setting. The project hosts 12 kilometres of strike of the fertile Berghaus Shear Zone along trend from Hemi discovery. All these indicate significant potential for Turner River to host substantial gold mineralisation.
Azure said that it will undertake geophysical surveys and reconnaissance drilling within this unexplored project as soon as the tenements are granted.
Meentheena and Coongan projects
The Meentheena and Coongan gold exploration projects are located in the eastern Pilbara.
Meentheena is located approximately 80km east of Marble Bar with easy access via the sealed Marble Bar to Telfer Gold Mine road.
Meentheena covers 223km2 and the project area has been explored by the Creasy Group for more than 25 years. Meentheena was drilled for epithermal gold mineralisation with five RC holes totalling 2,204m and one 706m diamond core hole.
Azure announced that it plans to undertake further exploration, initially comprising surface studies followed by drilling.
Coongan is located 8km to the west of Nullagine and covers an area of 141km2. The project adjoins Novo Resources’ Beatons Creek conglomerate-alluvial gold project.
Azure said that next stage exploration programs are being planned and will be executed in the coming tenement year.
Terms of tenement sale and exploration JV agreements
The company announced the key terms of the Andover Tenement Sale and Exploration Joint Venture Agreement, as well as the Turner River, Meentheena, and Coongan Tenement Sale and Exploration Joint Venture Agreement.
Azure said that the consideration for these acquisitions totals 40,000,000 Azure fully paid ordinary shares with the issue of these Shares subject to shareholder approval.
Post the placement, the Creasy Group will emerge as Azure’s largest shareholder with a 19.1% interest, which includes the Creasy Group’s participation in the Placement by subscribing for 1.2 million shares.
Andover Tenement Sale and Exploration Joint Venture Agreement
Azure announced that it would acquire a 60% interest in the tenement EL 47/2481 & Exploration Licence Application 47/4314 from Croydon Gold Pty Ltd, a private subsidiary of the Creasy Group. The company said that Creasy Group would retain 40%.
The company reported that the consideration is 24,000,000 Shares to be issued to Yandal.
Turner River, Meentheena and Coongan Tenement Sale and Exploration Joint Venture Agreement
Azure announced a 70:30 JV with Creasy Group for the Turner River, Meentheena, and Coongan projects in WA. Croydon Gold Pty Ltd, Youanmi Metals Pty Ltd, and Vaalbara Resources Pty Ltd form part of the Creasy Group which retains a 30% interest.
AZS announced that it would acquire 70% interest in Exploration Licence Application 45/2573 & Exploration Licence Application 45/2574 in the Turner River project from Croydon Gold Pty Ltd. The company said that the consideration is 1,600,000 Shares.
AZS said that it would acquire a 70% interest in Exploration Licence Application EL 45/5036 in Meentheena from Youanmi Metals Pty Ltd for a consideration of 8,800,000 Shares.
Azure reported that it has acquired a 70% stake in Exploration Licence Application EL 46/1156 within Coongan from Vaalbara Resources Pty Ltd for a consideration of 5,600,000 Shares.
The Company announced that it has received binding commitments from professional and sophisticated investors to raise gross proceeds of A$4 million by way of a share placement. Canaccord Genuity (Australia) Limited acted as Sole Lead Manager to the Placement.
AZS said that the proceeds of the Placement will be used to fund initial exploration at these new gold and nickel projects, fund ongoing exploration at the Alacrán silver, gold and copper project in Mexico, for working capital, and to pay costs of the capital raising.
Under the Placement, the company said that a total of 40.0 million shares will be issued at a price of $0.10 per share.
AZS said that Deutsche Balaton Aktiengesellschaft will participate in the Placement subject to the receipt of shareholder approval pursuant to LR 10.11 by subscribing for 17,000,000 Shares, thereby increasing its shareholding interest to 18.0%.
Azure’s Managing Director Tony Rovira said: “Due to the severity of the COVID-19 pandemic in Mexico and the uncertainty of future field operations, Azure sought gold and nickel projects in Western Australia to enable the Company to continue exploration activities.
We’re delighted to have acquired these four exciting projects which have strong potential due to historical exploration results, underlying geology and project locations. This acquisition enables the Company to reduce risk by diversifying across commodities and jurisdictions, giving shareholders exposure to both the hottest gold exploration district in Western Australia and an advanced nickel-copper project.
Andover is a highly prospective and very exciting base metal project with a nickel-copper discovery drilled by the Creasy Group demonstrating potentially economic grades and widths. The mineralisation is hosted in the Andover Complex, a layered mafic-ultramafic intrusive complex similar to the Gonneville Intrusive Complex which hosts the new Julimar nickel-copper-PGE discovery of Chalice Gold Mines.
The Turner River Gold Project is located in the Mallina region which is rapidly emerging as a major gold province with the potential to be of world-class scale. The property is adjacent to De Grey’s project which contains the Hemi gold discovery plus gold resources of 2.2Moz in multiple shear-hosted deposits. Turner River hosts similar geology to De Grey’s ground, including 12km of the fertile Berghaus Shear and parallel structures associated with the Hemi deposit.
Creasy Group have been Azure shareholders since 2003 and we are excited to take our relationship to the next level with this acquisition and to partner with him to explore and develop these exciting projects.
It’s important for our shareholders to understand that our projects in Mexico remain an important core business for the Company, however, these new projects are an exceptional opportunity to explore quality ground in partnership with a proven world-class mine-finder.”