Azul Ventures Inc.
TSX VENTURE : AZL

October 04, 2012 05:00 ET

Azul Ventures Receives High Grade Magnetite Concentrate Results from Drill Core Samples at Its La Higuera-Caballo Blanco Copper-Iron Projects in Chile

TORONTO, ONTARIO--(Marketwire - Oct. 4, 2012) - Azul Ventures Inc. ("Azul" or the "Company") (TSX VENTURE:AZL) is pleased to report results of magnetic separation testwork on magnetite-chalcopyrite mineralization from five drill core samples at its La Higuera-Caballo Blanco projects in Central Chile.

The testwork was a standard ALS laboratory procedure to determine the percentage of magnetically separable iron (magnetite) in the rock by fine grinding and separating magnetic particles using a Davis Tube and then analyzing a head sample and the concentrate. The work was completed to test the possibility of producing an iron ore co-product by magnetically separating magnetite from the copper sulphide flotation tailings resulting from processing copper-iron ore from La Higuera-Caballo Blanco. The Davis Tube separation resulted in high grade, clean magnetic iron concentrate, with low levels of potentially deleterious penalty elements. The test was done at a grind size of 45 microns and further detailed metallurgical testing must be completed to verify these preliminary results.

David O'Connor, President and CEO, said, "While these results are preliminary, we are very encouraged by them. The Davis Tube magnetic separation produced a high grade magnetite iron concentrate grading about 70% Fe and free of significant penalty elements. These results support the concept of producing an iron concentrate co-product as well as a copper sulphide concentrate from the La Higuera-Caballo Blanco projects mineralization. We envisage an initial flotation of a copper sulphide concentrate and subsequent magnetic separation of an iron concentrate. This is also planned at the Santa Domingo project, as announced by Capstone Mining Corp."

Five samples were selected to represent the type of magnetite-chalcopyrite mineralization in the system, with three samples from La Higuera and two from Caballo Blanco. The samples were composites of drill core from the following intervals:

La Higuera hole LHDD-13 - 292-295 m Caballo Blanco hole CB-01 - 168-172 m
La Higuera hole LHDD-12 - 107-110 m Caballo Blanco hole CB-01 - 340-344 m
La Higuera hole LHDD-11 - 240-243 m

The next step would be to carry out a thorough, representative metallurgical study.

The grade of drill core samples ranged from 26.59% to 45.60% Fe and from 0.033% to 0.896% Cu. The magnetic iron concentrate ranged from 68.89% to 70.67% Fe (average: 69.99% Fe), which is considered a high grade concentrate. The percentage recovery of total Fe ranged from 69-93.3%, with an average of 84.5%.

Grades of drill core and concentrate for selected elements are tabulated below:

ANALYSES OF CORE GRADE

ANALYSES OF CONCENTRATE
GRADE
Sample
ID
Fe
(%)
Cu
(%)
P
(%)
S
(%)
Al2O3
(%)

Fe
(%)
Cu
(%)
P
(%)
S
(%)
Al2O3
(%)
3791 28.93 0.033 0.227 0.398 1.78



69.89 0.001 0.002 0.035 0.45
3792 45.60 0.066 0.108 0.466 3.45 70.67 0.001 0.001 0.007 0.45
3793 38.86 0.192 0.136 0.581 5.08 70.15 0.001 0.001 0.012 0.39
3794 27.65 0.160 0.136 1.460 9.14 68.89 0.001 0.002 0.039 0.76
3795 26.59 0.896 0.509 4.830 5.85 70.37 0.001 0.006 0.045 0.35

COMMENTS ON POTENTIALLY DELETERIOUS ELEMENTS

The grade of phosphorus in the core ranged from 0.108% to 0.509% and was reduced to an average of 0.002% in the concentrate. The grade of sulphur in the core ranged from 0.398% to 4.830% and was reduced to an average of 0.028% in the concentrate. As the sulphides would be floated off during the copper concentration stage, the grade of sulphur in the magnetic concentrate would likely be further reduced.

GROUND MAGNETIC SURVEY AND DRILLING

The La Higuera camp has been mined for copper sulphides for about 200 years and despite the presence of high magnetite grades associated with copper mineralization, the magnetite has not been mined. A ground magnetic survey completed in late 2011 outlined the central magnetic anomaly, which measures approximately 1,600 x 200 m. The pole reduced magnetic amplitudes reach 33,000 nT and exceed 28,000 nT over a strike length of nearly 1,000 m. The consultant geophysicist, Joe Jordan, stated that, "These amplitudes are very high for this area of Chile and are consistent with amplitudes observed over nearby economic magnetite deposits. Based on the amplitudes of the magnetic anomaly, the central zone at La Higuera is expected to host magnetite grades that approach or reach economic levels."

Subsequent to the ground magnetic survey, a reverse circulation and diamond drilling campaign was completed at La Higuera earlier this year, which confirmed high grade iron (magnetite) mineralization associated with chalcopyrite. The following are selected drill intercepts with significant iron content:


HOLE NO.
INTERCEPT
(m)
Cu
(%)
Fe
(%)
LHRC-01 16 0.28 19.1
LHRC-02 28 0.02 22.8
with 8 0.03 32.8
LHRC-06 11 2.08 14.9
LHRC-07 54 0.35 16.0
with 14 0.47 23.3
LHRC-09 22 0.01 34.4
with 10 - 37.5
with 16 0.03 38.4
LHDD-11 35 0.05 27.3
LHDD-12 18 0.05 24.4
with 6 0.73 16.9
LHDD-13 24 0.47 36.2
with 14 0.70 28.8
LHDD-14 8 1.11 32.0

The drill results were released previously in the Company's May 22, 2012 and June 14, 2012 press releases.

Previous drilling at the adjacent Caballo Blanco project obtained the following significant copper-iron intercepts:

HOLE NO.
INTERCEPT
(m)
Cu
(%)
Fe
(%)
CAB-006 82 0.35 19.24
CB-01 40 0.40 18.50
and 38 0.22 19.72

The Company has not independently verified the historical drilling results on Caballo Blanco, and thus the drilling results should not be relied upon by shareholders, potential investors or any other individual or company. The Company is only using this historical information to assist with the planning and prioritization of exploration targets.

All La Higuera 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 two prospective copper-iron properties in La Higuera, Chile: the La Higuera Property and the Caballo Blanco Property. The properties are located approximately 600 km north of Santiago in a prolific I.O.C.G. belt surrounded by excellent infrastructure in a mining friendly jurisdiction.

The La Higuera Property was assembled as a result of the first-time consolidation of mining rights and 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.

The Caballo Blanco Property, which is begins approximately 1 km southwest of the La Higuera Property, has historical copper workings and a total of 15 broad spaced reconnaissance holes were completed at Caballo Blanco by previous option holders. The Company has received and logged the core from these historical drill holes.

Cautionary Statements

The Company has not independently verified the historical drilling results on Caballo Blanco, and thus the drilling results should not be relied upon by shareholders, potential investors or any other individual or company. The Company is only using this historical information to assist with the planning and prioritization of exploration targets.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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