Canadian research firm Fundamental Research Corp believes there is room for further growth at Azure’s Andover project where a resource was recently defined at the Andover deposit.

The firm noted that 4.8Mt resource grading 1.11% nickel, 0.47% copper and 0.05% cobalt, which it considers to be a small tonnage/high-grade deposit, at Andover is just one of several prospects identified at the broader project.

This belief is likely to be validated soon given that Azure Minerals (ASX:AZS) expects to update its resources later this year after testing other targets.

Results to date have already been promising with drilling at the Ridgeline prospect returning results such as 6.3m at 3.59% nickel and 4.5m at 3.95% nickel.

Diamond drilling is continuing at Ridgeline to extend the high tenor nickel mineralised zones along strike to the east and west as well as updip closer to surface.

Plans are also afoot to drill the Seaview, Skyline, Atrium, and Woodbrook prospects this year, all of which Fundamental believes could add further resources.

Andover is 60% owned by Azure with the remaining 40% held by billionaire prospector Mark Creasy of Bronzewing and Nova fame.

More than just nickel

Fundamental added that the pending assay results from drilling of 21 reverse circulation holes at the company’s wholly-owned Barton gold project are a further value catalyst.

The drill campaign had targeted extensions of Genesis Minerals’ (ASX:GMD) Puzzle North discovery, which is part of the 1.6 Moz Ulysses gold project.

Highlighting Azure’s confidence in Barton, the company had in February stake two new licence applications to add to its existing applications for two licences to the south of the project – taking the total land package up to 88km strike over the main Kookynie geological trend.

Plans to divest Azure’s Mexican silver and base metal assets could also add further value given the continued supply chain disruptions.

“We believe the current environment (inflation, potential for additional supply chain disruptions amid rising tensions between the West and East, and high oil prices, partially offset by slower growth in China) will support metal prices,” Fundamental noted.

“AZS is one of the very few juniors that have exposure to all of the five mainstream metals (gold/silver/copper/nickel/zinc).”

It added that with its valuation of Azure’s Mexican assets at 24c per share, a merger or acquisition could potentially unlock the value of the company’s portfolio.




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.