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Azarga Metals Announces Second Phase Work Program At Unkur Project

June 5, 2017 Download PDF

Azarga Metals Corp. (“Azarga Metals” or the “Company”) announces its proposed work program for the second phase of physical exploration at its Unkur Copper-Silver Project in the Zabaikalsky administrative region of eastern Russia.

The second phase of exploration at Unkur will be carried out during the 2017-2018 field season and will focus on the potential for the discovery of additional copper and silver mineralization from three target concepts: (i) drilling along strike or down dip from currently defined mineralization; (ii) drilling to confirm the presence of at least one additional mineralized zone postulated to occur stratigraphically below the currently defined Zone 1 and Zone 2; and (iii) drilling new targets expected to be generated by planned geophysical surveys.

Dorian L. (Dusty) Nicol, the Company’s president and CEO said “Our objective this year will be to at least double the size of the current Resource while increasing the overall copper and silver grades. Some of this increase is expected to come from step out drilling near the current Resource footprint. The remainder of the anticipated new Resource is expected to come from drilling of new targets from geophysics. Several such new targets have already been identified and drilling will focus on near-surface, high-grade targets as they are identified.”

The approved exploration plan comprises:

  • Geophysical exploration: continuation of ground magnetics and initiation of electrical prospecting (induced polarization or IP and electrical tomography) to the north and northeast of the currently defined resource.On a lower priority basis, the area to the south of the current resource will also be covered with ground magnetics and IP. These proposed survey areas are shown in Figure 1.
  • Near-resource drilling: eight diamond drill holes totaling 2,370 meters, as shown on the attached plan (Figure 2) and cross-sections (Figure 3). These drill holes are planned to confirm Zone 1 mineralization as estimated in the current resource model, extend Zone 2 mineralization along strike, and in some cases test for a postulated Zone 3 of mineralization, stratigraphically below Zone 2, as suggested by geologic mapping and historic trenching.

Figure 1: Plan view of survey areas


Figure 2: Plan view of Geological Mapping and Historical Trenching


  • New target drilling: approximately 1,500 meters of additional diamond drilling is earmarked to test new targets expected to be identified by the planned geophysical surveys.
  • Metallurgical characterization: mineralized samples from the Company’s prior drilling campaign, as well as sample composites from new mineralization expected to be drilled, will be characterized for sulphide / oxide content and identification of copper minerals to guide future metallurgical testing that will develop a suitable process flowsheet for Unkur mineralization.

The following Table shows the true width and composite grade of each mineralized intersection used in the current Resource estimate.These are shown as drilled in the accompanying plans and cross sections.

Table 1: Intersections used for estimation(1)

Hole or
trench ID
From
(m)
To
(m)
Length
(m)
Copper
grade
(%)
Silver
grade
(%)
Copper
equivalent
grade
(%)
True
thickness
(m)
Zone 1






AM-020 227.0 241.0 14 0.51 28.44 0.79 10.6
AM-001(2) 82.5 125.5 33 0.83 79.81 1.61 20.1
AM-002 432.5 472.5 40 0.31 12.77 0.44 33.8
AM-003(3) 40.5 77.5 37 0.43 39.63 0.82 26.9
AM-004(4) 319.5 358.5 31 0.44 27.23 0.70 23.7
AM-006 440.5 456.5 16 0.34 11.02 0.45 14.4
AM-007 47.0 60.0 13 0.25 17.12 0.41 10.9
AM-008 352.3 364.3 12 0.24 6.02 0.30 9.9
AM-011 145.5 153.9 8.4 0.92 61.73 1.52 7.3
AM-013 70.0 78.0 8 0.53 22.62 0.75 6.8
AM-015 135.0 145.0 10 0.29 4.55 0.34 8.7
AM-017 189.5 202.5 13 1.28 103.91 2.29 9.8
AM-019 39.0 49.0 10 0.48 12.39 0.60 8.6
TR K615 8.0 17.0 9 0.30 14.03 0.44 6.9
TR K616 18.0 29.0 11 0.41 6.32 0.47 8.1








Zone 2 (N)






AM-001 311.5 346.5 35 0.47 43.49 0.89
AM-019 106.0 119.0 13 0.17 4.99 0.22








Zone 2 (S)






TR K601 0.0 10.0 10 0.73 2.07 0.75

Notes:
(1) copper and silver equivalent grades were estimated using US$3.00/lb copper price, US$20.00/oz silver price and 100% recovery using the formulae Cu eq = Cu + (0.009722 x Ag) and Ag eq = Ag + (102.86 x Cu);
(2) mineralization begins at base of moraine, possibly intersection has been truncated by glacial erosion – composite excludes barren zone from 104.5 to 114.5;
(3) mineralization begins at base of moraine, possibly intersection has been truncated by glacial erosion; and
(4) composite excludes barren zone from 335.5 to 343.5.

Figure 3: Conceptual Cross Sections Showing Drilled Intersections and Targets





Qualified Person

The Company’s President and Chief Executive Officer, Dorian L. (Dusty) Nicol, B.Sc. Geo, MA Geo, a Qualified Person as defined by NI 43-101, has reviewed and approved the exploration information disclosures contained in this Press Release.

About Azarga Metals Corp.

Azarga Metals is a mineral exploration and development company that owns 60% of the Unkur Copper-Silver Project in the Zabaikalsky province in eastern Russia.

AZARGA METALS CORP.

"Dusty Nicol"
Dorian L. (Dusty) Nicol, President and CEO

For further information please contact: Doris Meyer, at +1 604 536-2711 ext 6, or visit www.azargametals.com.

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.

Cautionary Statement:

This news release contains forward-looking statements that are based on the Corporation's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current planned exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Corporation disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.