Azul Ventures Inc.

May 22, 2012 16:30 ET

Azul Completes 4,088 Metre Drill Program Which Demonstrates Continuous Broad Dissemination of Copper and Massive Magnetite Mineralization at La Higuera

Highlights of drilling include:

24.0 m of 0.47% Cu and 36.26% Fe

9.0 m of 0.97% Cu and 12.07% Fe

4.1 m of 1.46% Cu and 13.86% Fe

TORONTO, ONTARIO--(Marketwire - May 22, 2012) - Azul Ventures Inc. ("Azul", or the "Company") (TSX VENTURE:AZL) is pleased to announce initial results of the first phase of drilling at its La Higuera copper-iron project (I.O.C.G. style) in central Chile. The drilling and channel sampling completed to date supports management's belief that the main zone of disseminated and stockwork copper (Chalcopyrite) mineralization associated with massive magnetite is continuous over a length in excess of one kilometre ("km") and down to depths of several hundred metres ("m"). A total of 2,006 m of diamond drilling in five holes and 2,082 m of reverse circulation ("RC") drilling in nine holes was completed. Analytical results are available for the first four RC holes and the first two diamond drill holes as well as partial results for a third diamond drill hole.

David O'Connor, President and CEO, said, "We are very encouraged by our first phase drill results. Several holes terminated in underground workings, showing that high-grade mineralization was mined to greater depths than we anticipated while those holes that managed to penetrate the mineralized system, such as hole LHDD-13 (24 m of 0.47% Cu and 36.26% Fe), intersected broad disseminated and stockwork chalcopyrite, with massive magnetite mineralization. These results advance the conclusions of the geophysical surveys that the central core of the anomaly (the San Antonio Zone), which extends over a length of about 1.5 km and to depths of several hundred metres, likely contains a significant volume of magnetite mineralization and that the coincident chargeability anomalies indicate that sulphide mineralization is present together with the magnetite. Planned drilling is expected to firm up the nature and extent of mineralization in this zone and to expand it."

The next phase of drilling will be targeted to intersect the projection of the high-grade copper zone at regular intervals (100 m) beneath the underground workings in the San Antonio Zone and along strike from them. Also, in order to more efficiently drill the deeper zones, a program of underground drilling is planned, which will require the construction of drill bays within the Juan Muñoz Tunnel.

Drill hole positions from the first phase drill program are shown in Figure 1 and drill cross- sections on are shown in Figures 2-4 at the end of this press release.

Highlights include:

LHDD-10 Intersected 14.0 m at 0.46% Cu at shallow depth associated with a strong chargeability anomaly located to the north of the principal San Antonio mineralized zone.
LHDD-11 Intersected 4.1 m at 1.46% Cu and 13.86% Fe, along the western extension of the San Antonio Zone.
LHDD-13 Intersected 24.0 m at 0.47% Cu and 36.26% Fe, including 14.0 m at 0.70% Cu beneath the main San Antonio Zone.
LHRC-03 Intersected several zones of copper and iron mineralization before hole obtained 2 m at 2.38% Cu and stopped in workings at 169 m.
LHRC-04 Intersected 9.0 m of 0.97% Cu and 12.07% Fe, including 7.0 m of 1.21% Cu, along the main San Antonio Zone.

Photographs of drill core from LHDD-13 are shown in Figures 5A-5D at the end of this press release.

Channel sampling in the open pits obtained the following results:

- 8 m at 0.95% Cu and 34.38% Fe;
- 20 m at 0.27% Cu and 8.65% Fe;
- 15 m at 0.53% Cu and 29.36% Fe;
- 17 m at 1.69% Cu and 11.54% Fe;
- 6 m at 1.54% Cu and 21.85% Fe;
- 20 m at 0.76% Cu and 16.10% Fe; and,
- 10 m at 0.40% Cu and 12.68% Fe.

Many of the holes drilled beneath the open pits failed to penetrate the main mineralized zone due to encountering underground workings which extend deeper than anticipated. An exception was LHDD-013 which did not hit workings and which intersected 24 m of 0.47% Cu and 36.26% Fe beneath the San Antonio workings. Also, hole LHDD-014, which tested the San Antonio Zone along strike from the main workings area, obtained substantial intercepts of magnetite and analytical results are awaited. Whereas hitting workings caused drilling problems, higher grade copper mineralization was encountered immediately adjacent to the workings in some holes (e.g. LHRC-03 - 164-166 m; 2 m at 2.38% Cu), showing that the workings extend deeper than anticipated and the high-grade copper zone also extends to a considerable depth, as indicated by the magnetic anomaly.

Diamond Drilling
Drill Hole From To Width Copper Iron
ID Metres Metres Metres % %
LHDD-10 62.0 70.0 8.0 0.03 21.59
112.0 115.0 3.0 0.66 15.71
142.0 156.0 14.0 0.46 6.39
includes 8.0 0.65 6.41
LHDD-11 159.9 164.0 4.1 1.46 13.86
179.0 182.0 3.0 0.64 8.30
206.0 218.0 12.0 0.41 15.08
includes 2.0 0.87 14.10
224.0 259.0 35.0 0.06 27.31
269.0 277.0 8.0 0.46 13.82
includes 3.0 1.05 17.82
LHDD-13 Partial 258.0 282.0 24.0 0.47 36.26
includes 14.0 0.70 28.82
281.0 290.0 9.0 0.07 30.29
Reverse Circulation
Drill Hole From To Width Copper Iron
ID Metres Metres Metres % %
LHRC-01 78.0 88.0 10.0 0.04 23.96
138.0 144.0 6.0 0.68 13.60
includes 3.0 1.03 13.67
149.0 159.0 10.0 0.29 22.46
170.0 175.0 5.0 0.56 9.86
210.0 212.0 2.0 0.82 16.85
LHRC-02 1.0 5.0 4.0 0.58 10.97
86.0 114.0 28.0 0.02 22.76
136.0 144.0 8.0 0.03 32.76
180.0 182.0 2.0 0.78 10.88
LHRC-03 38.0 46.0 8.0 0.05 24.98
92.0 108.0 16.0 0.01 20.36
137.0 141.0 4.0 0.46 21.88
149.0 152.0 3.0 0.50 11.46
163.0 167.0 * 4.0 1.28 12.40
LHRC-04 30.0 40.0 10.0 0.01 32.77
117.0 126.0 9.0 0.97 12.07
includes 7.0 1.21 12.48
* last recovered sample before drillhole was lost in mine workings

All drill hole samples consist of split HQ and NQ diamond drill core. Core samples were split at the ALS Chemex core cutting facility in Coquimbo, Chile. Sample preparation and analysis was conducted by ALS Chemex lab in Coquimbo, Chile and at Acme Analytical Laboratories in Santiago, Chile. Gold is determined using fire assay using 30g aliquots with an AAS finish. Copper and iron are determined by four acid digestion followed by ICP-ES or ICP-AES analysis. All samples are subject to a chain of custody and are submitted with standards and blanks to check the assay results. The laboratories also use internal standards and repeat analysis.

Since the mineralization is controlled by a complicated set of intersecting structures it is difficult to comment on true width at this stage, but the angle of hole LHDD-13 in relation to the overall mineralized system may have exaggerated the width by approximately 30%.

Geological mapping and geochemical sampling is underway at La Higuera via the rehabilitated Juan Muñoz Tunnel which extends horizontally for approximately 1.5 km and connects the historical underground workings. Initial reconnaissance along the tunnel revealed stockwork and veinlet hosted chalcopyrite mineralization within massive magnetite zones, (see photos below - Figure 6; Figure 7). As intersected in drilling, this demonstrates that copper sulphide mineralization at La Higuera is not restricted to the historically mined high-grade structures, but is developed extending beyond these high-grade structures. Mapping and sampling of these mineralized zones underground is providing valuable geological information regarding the controls of mineralization and will assist in planning future drill campaigns.

Michael Easdon, M.Sc., CPG, an independent consultant to the Company, is a "qualified person" as defined by National Instrument 43-101, and has reviewed and approved the technical information and data included in this press release.

About Azul Ventures Inc.

Azul Ventures Inc. is a mineral exploration company with the rights, through its wholly owned subsidiary Minera Azul Ventures Limitada, to acquire a 100% interest in a prospective copper- iron property in La Higuera, Chile (the "La Higuera Property"). The La Higuera Property, which is located approximately 600 km north of Santiago, was assembled as a result of the first-time consolidation of mining rights in a historical I.O.G.C. mining center and is located in a prolific I.O.C.G. belt surrounded by excellent infrastructure in a mining friendly jurisdiction.

The La Higuera Property covers a historic copper mining district with mining activity dating back to at least the late 18th century; however, there has been no known modern exploration conducted on the property. Since the consolidation of the mining rights in June of 2011, Azul has initiated a rock sampling program, completed geophysical work which has generated intense magnetic and chargeability anomalies coincident with existing copper workings, finalized a 4,088 m drill program, and commenced an underground mapping and sampling program.

Azul also hold the rights to acquire a 100% interest in the Caballo Blanco Property, a prospective copper-iron property located approximately 6 km southwest of the La Higuera Property.

Cautionary Statements

Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; market conditions; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified in the "Risk Factors" section of the Company's Filing Statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Azul undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.

To view FIGURE 1, please visit the following link:

To view FIGURE 2, please visit the following link:

To view FIGURE 3, please visit the following link:

To view FIGURE 4, please visit the following link:

To view FIGURE 5A, 5B, 5C & 5D, please visit the following link:

To view FIGURE 6 & 7, please visit the following link:

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