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Azure Minerals Ltd.

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Summary

Project:

Oposura

Deposit:Oposura
Location:Mexico
Commodities:Zinc-Lead-Silver
Date:10/15/2018
Report Code:JORC
Report Type:Scoping Study
Project Stage:Pursuing Resource Increase/Upgrade
Report details:15-10-2018: Azure Minerals Ltd. announces a Scoping Study report for its Oposura deposit at the Oposura project. Scoping Study results incl. pre-tax NPV of A $112 (8%), IRR of 76%, 5.3yr LOM at the project. Azure Minerals Limited (ASX: AZS) (“Azure” or “t
Resources:(Resource, I+I): 2.9Mt @ 5.0% Zn, 2.8% Pb, 17.0g/t Ag
CP/QP:[Resources]: Matthew Cobb (CSA Global Pty Ltd.)
ABSTRACT:Azure Minerals Limited (ASX: AZS) (“Azure” or “the Company”) is pleased to announce positive outcomes from the Scoping Study (“Study”) completed on its 100%-owned Oposura zinc-lead-silver project (“Oposura” or “the Project”), located in Sonora, Mexico. The Study delivers a Life of Mine (LOM) EBITDA of A$237 million, NPV8 (pre-tax) of A$112 million and an IRR (pre-tax) of 76%, confirming Oposura as an economically and technically robust, high-margin project. Low operating and capital costs, high-value concentrate, strong operating cashflows, a payback period of about 16 months and, most importantly, a C1 cash cost (per pound of payable zinc production) in the lowest quartile of world zinc producers, all support the positive project economics. Commenting on the Scoping Study, Azure’s Managing Director, Mr Tony Rovira said: ““The completion of this Study with its very positive project economics represents a key milestone for the Company. We’re immediately progressing into the Feasibility Study stage with the intention of developing Oposura into the Company’s first operating mine as swiftly as possible to take advantage of the strong zinc thematic. “The style of the deposit will deliver exceptionally low estimated operating costs, driven by the near-surface, high-grade mineralisation and efficient open pit and underground mining methods which will see Oposura’s costs in the lowest quartile of zinc producers globally. Furthermore, there is excellent potential that additional exploration, which is currently underway, will significantly expand the Project’s resources and further improve the project economics and increase the mine life. “We see this project as technically and financially robust and eminently financeable, and the Company has received strong expressions of interest from debt providers, concentrate offtakers and strategic parties interested at the asset level. We look forward to advancing this project expeditiously towards production that will see Azure transition from an exploration company to a producer. ”

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