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Gold/Silver Investor Hub: Given the ownership changes at Azure’s Promontorio and Alacrán projects, what are the company’s key objectives for the coming year?
Tony Rovira: Azure is in a very comfortable position right now, with over A$11 million in the bank and no significant overhead costs to cater for. Teck will be very busy exploring on the Alacrán project and we’re looking forward to some excellent results from the highly prospective copper targets. Additionally, it seems that notwithstanding Kennecott’s withdrawal from the Promontorio JV, other copper majors retain a strong level of interest in the project, so we’ll see where that takes us in 2017. Meanwhile, the company is very busy seeking a new flagship project that will become our focus in the months and years ahead.
Gold/Silver Investor Hub: Is there a silver lining to Kennecott Exploration Mexico, part of the Rio Tinto Group, recently opting to bow out of Azure’s Promontorio project?
Tony Rovira: Within a few days of announcing that Kennecott had withdrawn from the JV, we were approached by several major mining companies expressing interest in reviewing the data and possibly joining with Azure on the project. Due diligence activities have commenced, hopefully to be followed with the companies undertaking site visits. As I mentioned above, we’ll see how this progresses, but I’m optimistic that the prospectivity of the Promontorio Project will attract another partner.
Gold/Silver Investor Hub: What are Azure’s plans now for the 100%-owned Promontorio project, which contains two high-grade deposits with total resources of 40,000 tonnes of copper, 151,000 ounces of gold and 3.3 million ounces of silver?
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Tony Rovira (pictured, left): Given that the project already hosts two near-surface, high grade copper, gold and silver deposits, and that the recent exploration undertaken by Kennecott confirmed the presence of a strongly developed, copper-mineralised porphyry, the company is confident that further exploration will continue to discover addition precious and base metal deposits.
Gold/Silver Investor Hub: Teck Resources recently decided to exercise its right to earn back in to the Alacrán silver project. This decision comes just months after Azure had earnt full ownership of Alacrán. What does Teck’s decision, and the accompanying sole funding of US$10 million over four years for Teck’s subsidiary to re-acquire 51%, mean for Azure and the project’s development?
Tony Rovira: While Teck exercising their back-in right means the silver and gold deposits won’t be developed (by Azure) in the near-term, it’s very promising that Teck think so highly of the copper potential that they have elected to spend an initial US$10 million exploring the property. We are very excited that Teck, one of the world’s major mining companies, will be undertaking an aggressive and highly technical exploration program at no cost to Azure, and we keenly anticipate the results.
Gold/Silver Investor Hub: Alacrán already has an established 32.3Moz silver and 150,000oz gold resource, and recent drilling has also intersected significant copper mineralisation. Is the copper potential likely to be investigated further?
Tony Rovira: First and foremost, Alacrán has always been considered a copper project with outstanding potential to host major copper deposits. After all, it is situated in the middle of the major copper-producing district of North America and lies immediately adjacent to the world-class, giant Cananea Copper Mine (pictured, right, in the distance, beyond Azure geologists overlooking Mesa de Plata). Having explored the property for the past two years, and successfully discovered two silver-gold deposits, Azure’s geologists also rate the copper prospectivity very highly.
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Gold/Silver Investor Hub: Azure is on the hunt for a “new flagship project” and more high quality projects in Mexico – what criteria have you set for the search?
Tony Rovira: The company is in a strong position, with significant cash in the bank, low overheads, and a very strong technical team eager to continue with their exploration successes. Our goal is to acquire an advanced project that has mineralised drill intercepts and possible also mineral resources. We are proactively pursuing several precious and/or base metal projects that we’ve previously identified as having excellent potential. In addition, word has spread of our search, and numerous projects are being offered to us. Now it’s a matter of sorting the wheat from the chaff and our geologists are busy undertaking field visits to review the projects. It’s not a matter of grabbing the first or second project that comes along, it’s important that we use this opportunity to get the “right” project and set the company up for a long and prosperous future.
Gold/Silver Investor Hub: Azure has about A$11 (US$9) million in cash, how do you anticipate these funds will be used?
Tony Rovira: We don’t want to spend all our funds on a single purchase. One of Azure’s great strengths is the strong technical ability of our exploration team, which in the past has resulted in several precious and base metal discoveries. So a mixture of acquisition and an earn-in by spending money in the ground seems to be an appropriate mix.
Gold/Silver Investor Hub: Can you elaborate on Azure seeking a TSX listing this year and how these plans are progressing?
Tony Rovira: Azure is still considering a TSX listing, because with our focus on Mexico, it is a natural fit for North American investors. However, with Teck exercising their back-in right on our flagship Alacrán Project, the immediate imperative has lessened until we have acquired the next major project. Hopefully that will be soon!
