Azul Ventures Inc.

June 14, 2012 10:10 ET

Azul Receives Additional Drilling and Underground Channel Sampling Results, Giving Extra Support to the Presence of Continuous Broad Dissemination of Copper and Massive Magnetite Mineralization

Highlights include:

54 m of 0.35% Cu and 16.0% Fe in hole LHRC-07

11 m of 2.08% Cu and 14.9% Fe in hole LHRC-06

6 m of 1.00% Cu and 25.4% Fe in hole LHDD-12

8 m of 1.10% Cu and 32.0% Fe in hole LHDD-14

23 m of 0.68% Cu and 35.9% Fe in channel sampling

TORONTO, ONTARIO--(Marketwire - June 14, 2012) - Azul Ventures Inc. ("Azul", or the "Company") (TSX VENTURE:AZL) is pleased to announce additional results from the first phase of drilling at its La Higuera copper-iron project (I.O.C.G. style) in central Chile, as well as results from the first phase of underground channel sampling. 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 eight RC holes and the first three diamond drill holes as well as partial results for the other two diamond drill holes. In addition, analytical results are available for 222 channel samples collected from the old stoped areas that drilling failed to penetrate.

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.

David O'Connor, President and CEO, said, "We are particularly encouraged by our first channel sample results. Whereas several drill holes terminated in underground workings and failed to test the higher grade parts of the system (LHRC-1,-2,-8 and LHDD-12), our subsequent underground channel sampling has shown the thickness of these richer, undrilled areas, which add considerably to the overall grade of the system. It is very encouraging that we have channel samples up to 23 m of 1.20% Cu and 32.7% Fe in an old mined area where higher grade copper has already been mined. The holes away from the old stopes 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, showing the thickness of the system where tested. The core of the magnetic anomaly (the San Antonio Zone), extends over a length of about 1.5 km and to depths of several hundred metres. Results show that it contains a significant volume of magnetite mineralization, together with substantial copper sulphide mineralization. Planned drilling is expected to firm up the nature and extent of higher grade mineralization in this zone and to expand it."

The first phase of underground channel sampling has been completed at La Higuera in the stockwork and veinlet hosted chalcopyrite mineralization within the magnetite zones, (see plan and photo below - Figures 1 and 2 at the end of this press release). The old stoped area was accessed via the rehabilitated Juan Muñoz Tunnel which extends horizontally for approximately 1.5 km and connects the historical underground workings. The workings, where the samples were collected, are between 100-150 m below the surface. As the overall dip of the mineralized system is approximately 60 degrees, the channel samples were taken horizontally and are mainly one metre lengths.

Analytical results of underground channel samples are presented on the following table.

Channel From To Width Copper Iron
ID Metres Metres Metres % %
0 16 16 0.28 37.0
JMS-01 16 39 23 1.20 32.7
includes 11 1.54 31.3
JMS-02 0 6 6 0.71 35.8
0 11 11 0.53 35.1
JMS-03 includes 7 0.65 40.1
0 8 8 0.93 33.1
JMS-04 includes 5 1.24 29.2
0 14 14 0.57 33.2
JMS-05 includes 6 0.73 29.2
0 10 10 0.30 35.8
JMS-06 includes 2 0.81 28.9
0 8 8 0.58 32.4
JMS-07 includes 5 0.73 31.8
JMS-08 2 4 2 0.68 35.1
JMS-09 1 4 3 0.44 29.7
0 23 23 0.68 35.9
JMS-11 includes 9 0.84 35.6
and 7 0.91 35.8
0 8 8 0.58 25.7
JMS-12 includes 3 0.88 34.0
and 2 0.78 22.3
JMS-13 1 9 8 0.94 26.7
JMS-14 0 10 10 1.13 34.7
0 7 7 0.80 20.4
JMS-17 includes 4 1.18 20.2

Earlier channel sampling in the open pits obtained the following results:

Channel From To Width Copper
ID Metres Metres Metres %
332 0 6 6 1.01
334 0 9 9 1.26
337 0 12 12 0.94
341 0 6 6 0.90
343 0 21 21 0.42
355 0 18 18 0.64
361 0 12 12 0.54
365 0 32 32 0.77
373 0 16 16 0.76
H024 0 20 20 0.76
H035 0 8 8 1.31
H098 0 6 6 0.80
H132 0 5 5 1.02
H217 4 15 11 0.65
H223 0 8 8 0.95
H281 0 17 17 1.48
(Iron content not available as assaying included only partial digestion)

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. 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). Channel sampling has tested a part of the system where drilling from surface failed to penetrate and has augmented the drill results, showing that the high-grade copper zone extends to a considerable depth, as indicated by a magnetic anomaly.

Holes which did not hit workings show the thickness of the mineralized system. These include LHDD-13, LHDD-14 and LHRC-07. These have the following intercepts:

LHRC-07: 54 m of 0.35% Cu and 15.95% Fe
LHDD-13: 24 m of 0.47% Cu and 36.26% Fe
LHDD-14: 10 m of 0.89% Cu and 31.40% Fe (partial results)

As intersected in drilling, the channel sampling demonstrates that copper sulphide mineralization at La Higuera is not restricted to the historically mined high-grade structures, but is developed extending beyond these zones. Mapping and sampling of these mineralized areas underground is providing valuable geological information regarding the controls of mineralization and will assist in planning future drill campaigns.

Drill hole positions from the first phase drill program are shown on Figure 3 and drill cross-sections on are shown in Figures 4-7.

Drill Hole From To Width Copper Iron
ID Metres Metres Metres % %
63.0 66.0 3.0 0.01 26.73
84.0 89.0 5.0 0.02 22.41
103.0 109.0 6.0 1.00 25.37
LHDD-12 includes 4.0 1.45 16.23
107.0 125.0 18.0 0.05 24.45
191.0 197.1 6.1 0.73 16.89
288.0 298.0 10.0 0.89 31.40
LHDD-14 includes 8.0 1.10 31.97
Partial includes 4.0 1.76 32.30
Drill Hole From To Width Copper Iron
ID Metres Metres Metres % %
86.0 90.0 4.0 0.82 9.00
LHRC-06 118.0 131.0 13.0 1.78 13.60
includes 11.0 2.08 14.90
62.0 84.0 22.0 0.33 26.86
LHRC-07 68.0 122.0 54.0 0.35 15.95
includes 22.0 0.42 20.14
165.0 167.0 no recovery
167.0 169.0 2.0 1.09 14.80
LHRC-08 169.0 170.0 no recovery
170.0 174.0* 4.0 0.61 24.86
* 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 30 g aliquots with an AAS finish. Copper and iron are determined by four acid digestion followed by ICP-ES or ICP-AES analysis. Channel samples were analyzed by Acme Analytical Laboratories in Santiago, Chile, using the same analytical procedures. 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%.

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 FIGURES 1 to 7, please visit the following link:

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