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Azarga Metals Samples 21 Meters Of 39.6G/T Silver and 0.81% Copper to Further Expand Mineralization at Unkur

February 16, 2017 Download PDF

AZARGA METALS CORP. ("Azarga Metals" or the “Company”) (TSX-V:AZR) announces assay results from surface channel samples of outcropping mineralization and diamond core drill-holes from its Unkur Copper-Silver Project in the Zabaikalsky administrative region of eastern Russia.

Azarga Metals’ President and CEO Dorian (Dusty) Nicol said, “The outcrop and drill hole samples announced today extend both the strike length and width of identified copper-silver mineralization at Unkur and adds to our confidence that with continued exploration, Unkur will continue to expand in size and grade.”

The Company has now completed field activities for its first phase exploration program. In addition to the assays covered in this press release, additional data is still pending for the trenching program. Azarga Metals has engaged SRK Consulting (Russia) Ltd. to prepare a maiden NI 43-101 Resource estimate at Unkur, which is expected to be completed late in Q1 or early in Q2 of 2017.

CHANNEL SAMPLES OF OUTCROPPING MINERALIZATION

Channel samples from each of two surface outcrops located about 800 meters apart from each other assayed 21 meters at 39.6g/t silver and 0.81% copper (ie, 126.2g/t silver equivalent or 1.18% copper equivalent) and four meters at 5.2g/t silver and 0.41% copper (ie, 49.0g/t silver equivalent or 0.46% copper equivalent), respectively. These outcrops add approximately 200 meters of potential up-dip extension to silver-copper mineralization delineated by drilling.

ASSAYS FROM FINAL HOLES OF FIRST PHASE EXPLORATION

Azarga Metals has received assay results from the remainder of its first phase drilling program. Significant results include:

  • Drill-hole AM-020: 10 meters at 37.6g/t silver and 0.67% copper (ie, 109.2g/t silver equivalent or 1.02% copper equivalent) from 229.0 meters to 239.0 meters, including four meters at 81.9g/t silver and 1.50% copper (ie, 242.3g/t silver equivalent or 2.27% copper equivalent) from 235.0 meters to 239.0 meters.
  • Drill-hole AM-002: 38 meters at 13.1g/t silver and 0.32% copper (ie, 47.3g/t silver equivalent or 0.44% copper equivalent) from 434.5 meters to 472.5 meters.
  • Drill-hole AM-019: 10 meters at 12.4g/t silver and 0.48% copper (ie, 63.6g/t silver equivalent or 0.60% copper equivalent) from 39.0 meters to 49.0 meters.
  • Drill-hole AM-006: 13 meters at 13.1g/t silver and 0.40% copper (ie, 55.9g/t silver equivalent or 0.52% copper equivalent) from 443.5 to 456.5 meters.
  • Drill-hole AM-008: 11 meters at 6.4g/t silver and 0.25% copper (ie, 33.1g/t silver equivalent or 0.31% copper equivalent) from 352.3 meters to 363.3 meters.

Note: copper and silver equivalencies have been calculated using US$17.89/oz silver price and US$2.79/lb copper price and assuming 100% recoveries.

Note: drill intercepts are reported as drilled and may not be representative of true widths. Drill holes have been sited to attempt to intersect mineralization as close to perpendicular as possible, but there is not sufficient information about geometry of the mineralization at this time to estimate true widths. A Quality Assurance / Quality Control program is part of the sampling program on the Unkur prospect. This program includes chain of custody protocols as well as systematic submittals of standards, duplicates and blank samples into the flow of samples produced by the sampling including check assays of approximately 10% of the samples by another certified laboratory. Samples were analyzed at SGS Vostok Limited in Chita, Russia. Check assays will be analyzed at ALS Geochemistry in Chita, Russia.

DRILLING UPDATE

Azarga Metals has drilled approximately 4,600 meters at its Unkur Copper-Silver Project as per the table below. The table does not include abandoned holes.

Table 1: Location details for Unkur phase one drilling program completed holes

Hole ID East
(UTM)
North
(UTM)
RL Dip Azimuth
(magnetic)
Hole type EOH Recovery
AM-001 56.84 118.57 929m 70° 253° DD 401m 95%
AM-002 56.84 118.57 923m 70° 253° DD 520m 95%
AM-003 56.84 118.57 931m 70° 254° DD 96m 95%
AM-004 56.84 118.57 931m 70° 244° DD 383m 95%
AM-005 56.84 118.57 930m 70° 242° DD 160m 95%
AM-006 56.83 118.58 955m 70° 242° DD 575m 95%
AM-007 56.83 118.58 928m 70° 239° DD 80m 95%
AM-008 56.83 118.58 1,013m 70° 239° DD 601m 95%
AM-009 56.82 118.58 976m 70° 236° DD 225m 95%
AM-011 56.82 118.59 960m 70° 234° DD 179m 95%
AM-012 56.84 118.57 923m 70° 261° DD 520m 95%
AM-013 56.82 118.59 1,000m 70° 231° DD 100m 95%
AM-015 56.82 118.60 1,044m 70° 230° DD 196m 95%
AM-017 56.83 118.78 913m 70° 242° DD 278m 95%
AM-019 56.83 118.58 934m 70° 236° DD 236m 95%
AM-020 56.84 118.58 902m 70° 261° DD 285m 95%

Table 2: Unkur phase one drilling program assays reported to date (incl. this report)

Hole ID Intersection From To Silver grade Copper grade
AM-001 (IS 1) 40m 82.5m 122.5m 65.9g/t 0.74%
- AM-001 sub-section 22m 82.5m 103.5m 111.9g/t 1.13%
- AM-001 sub-section 7m 85.5m 92.5m 244.1g/t 1.95%
AM-001 (IS 2) 18m 314.5m 322.5m 70.0g/t 0.81%
- AM-001 sub-section 7m 320.5m 327.5m 137.7g/t 1.51%
AM-001 (IS 3) 5m 339.5m 344.5m 49.2g/t 0.32%
AM-002 38m 434.5m 472.5m 13.1g/t 0.32%
AM-003 16m 56.5m 72.5m 84.0g/t 0.79%
- AM-003 sub-section 5m 59.5m 64.5m 200.4g/t 1.39%
AM-004 11m 323.5m 334.5m 58.0g/t 0.87%
AM-006 13m 443.5m 456.5m 13.1g/t 0.32%
AM-007 10m 49.0m 59.0m 20.2g/t 0.29%
AM-008 11m 352.3m 363.3m 6.4g/t 0.25%
AM-011 14m 140.2m 153.9m 38.7g/t 0.59%
- AM-011 sub-section 6m 148.0m 153.9m 86.4g/t 1.25%
AM-013 6m 71.0m 77.0m 27.7g/t 0.66%
AM-015 10m 135.0m 145.0m 4.6g/t 0.29%
AM-017 10m 192.5m 202.5m 134.2g/t 1.63%
- AM-017 sub-section 6m 192.5m 198.5m 194.5g/t 2.42%
AM-019 10m 39.0m 49.0m 12.4g/t 0.48%
AM-020 10m 229.0m 239.0m 37.6g/t 0.67%
- AM-020 sub-section 4m 235.0m 239.0m 81.9g/t 1.50%

Notes: = full reported intersection and = sub-section of the relevant full reported intersection.

Drill-holes AM-005 and AM-009 did not intersect mineralization of significance. Hole AM-010 was not drilled.


UNKUR COPPER-SILVER PROJECT

Azarga Metals owns 60% of the Unkur Copper-Silver Project along with the right to acquire the remaining 40% in the future.

Sediment-hosted copper and silver mineralization has been identified across the 5,390 hectare project license area, in outcrops, trenches and by historical diamond drilling. The prior exploration outlined a large area of high-grade shallow stratiform sediment hosted copper-silver 20 to 50 meters thick over an area four to six kilometers long.

Further details concerning Unkur Copper-Silver Project are contained in a technical report filed by the Company as per its news release of 5 April 2016.

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.