La Higuera Copper-Iron Property
The La Higuera Copper-Iron Property is the result of the first-time consolidation of mining rights in a historical copper-gold mining center where high grade copper sulphide mining supported 11 small smelters and which is located in a prolific I.O.C.G. belt surrounded by excellent infrastructure in a mining friendly jurisdiction. Mining activity on the La Higuera Property dates back to at least the late 18th century; however, there has been no known modern exploration conducted on the property.
The La Higuera Property is 600 km north of Santiago at an elevation of approximately 800 m and is located immediately adjacent to the mining town of La Higuera which is 60 km north of La Serena in Region IV, and 4 km east of the Pan American Highway. Access from the town of La Higuera is by variably maintained dirt/gravel roads.
The mining concessions, consolidated for the first time and totalling of 1,076 hectares, are held by four separate concession holders (down from 1,230 hectares held by six concession holders, as two option agreements were subsequently dropped). Housing is available at the town of La Higuera and it is expected that water supplies can be developed within the area. The main northern Chile power grid passes nearby the town of La Higuera. Supplies can be obtained from Santiago and La Serena. La Serena, Copiapo and other nearby towns, including La Higuera have well trained and experienced miners.
Since the consolidation of the mining rights, Azul has completed a surface rock sampling program, completed geophysical work and a 4,088 metre drill program. An underground sampling and analyses program is underway.
The results of the drilling program 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 economic magnetite mineralization and that the coincident chargeability anomalies indicate that sulphide mineralization is present together with the magnetite.
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 (this intercept is immediately adjacent to the core ground retained by Azul).
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.
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.