Azarga Metals Announces Second Phase Work Program at Unkur Project
AZARGA METALS CORP.
UNIT 1 – 15782 MARINE DRIVE, WHITE ROCK, B.C. V4B 1E6, CANADA
www.azargametals.com
FOR IMMEDIATE RELEASE
June 5, 2017 TSX-V: AZR
AZARGA METALS ANNOUNCES SECOND PHASE WORK PROGRAM
AT UNKUR PROJECT
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 wi th
ground magnetics and IP. These proposed survey areas are shown in Figure 1.
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• 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
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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.
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The following Table shows the true width and composite grade of each mineralized
intersection used in the current Resource estimate. T hese 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) minerali zation begins at base of moraine, possibly intersection has been
truncated by glacial erosion – composite excludes barren zone from 104.5 to 114.5; (3) minerali zation
begins at base of moraine, possibly intersection has b een truncated by glacial erosion; and (4) composite
excludes barren zone from 335.5 to 343.5.
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Figure 3: Conceptual Cross Sections Showing Drilled Intersections and Targets
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