Azure hits massive sulphide motherlode at Andover, shares soar
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Special Report: The new ‘VC7’ nickel-copper discovery is 1km-long, ~ 200m thick and strongly mineralised. “There is excellent potential here for a major new nickel-copper deposit,” Azure Minerals (ASX:AZS) says.
Azure’s Andover Ni-Cu discovery – which has sparked multiple re-rates of the stock since October – continues to deliver outstanding results.
The latest drillhole has intersected a 38m-wide zone containing significant intervals of nickel-copper sulphides.
Importantly, the likely source of this high-grade nickel-copper is a large, newly defined, and previously untested electromagnetic (EM) conductor.
Some sulphide minerals are good electrical conductors. Explorers can pick up these ‘anomalies’ during early stage EM surveys.
This hole was designed to test a very strong, 1km-long conductor called ‘VC7’ identified by a recent surface fixed loop electromagnetic (FLTEM) survey.
VC7 is near, but separate to, the sulphide mineralisation recently drilled by Azure which returned several significant nickel-copper intersections.
Massive nickel-copper sulphides were intersected in VC7 at the expected depth, confirming that the source of the electrical signature was this new sulphide body.
(The hole, which was predicted to intersect the plate between 350m-375m downhole, entered the sulphide zone at 336m and exited at 374m downhole. So, pretty accurate.)
Visually, the quantity of sulphide mineralisation is estimated to be significantly greater than was observed in Azure’s first three drill holes.
This includes about 4m of sought-after ‘massive’ sulphides (almost all sulphides), which contains higher metal grades than ‘semi-massive’, ‘matrix’, ‘blebby’, or ‘disseminated’ types.
“A strongly mineralised intersection leads us to believe that if the one kilometre-long conductor plate is similarly mineralised throughout, there is excellent potential here for a major new nickel-copper deposit,” Azure managing director Tony Rovira says.
“The key point to take away from our drilling successes to date, is that wherever we have targeted an EM conductor at Andover, we have intersected nickel-copper sulphide mineralisation.”
Azure has completed FLTEM surveying of 12 separate geophysical anomalies located throughout the Andover project area. The upside is huge.
VC7 is now a key target, with drilling targeting the ‘up-dip’ and ‘down-dip’ areas, followed by ‘step-out’ drilling to the west-northwest to test the strike extent of VC7.
Downhole EM (DHTEM) surveying is being undertaken in each of the drillholes as they are completed, which will provide greater definition on the vertical / down-dip extent of the VC7 conductor plate.
Drilling to test other high-priority conductors is being planned and, subject to drill rig availability, will likely kick off in the first quarter of 2021.
This article was developed in collaboration with Azure Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.