Azucar Announces the Option of Three Projects in Nevada, USA from Almadex Minerals
NEWS RELEASE
May 1, 2025
Trading Symbols:
TSX-V: AMZ; OTCQB: AXDDF
www.azucarminerals.com
Azucar Announces the Option of Three Projects in Nevada, USA from Almadex Minerals
VANCOUVER, B.C. Azucar Minerals Ltd. ("Azucar" or the "Company") (TSX-V: AMZ; OTCQB: AXDDF) announces
that it has signed an Option-Joint venture exploration agreement (the “Option”) with Almadex Minerals Ltd. (“Almadex”)
whereby Azucar has the option to acquire a 60% interest in three of Almadex’s wholly owned blocks of claims in Nevada,
the Pilot, Confusion Hills and Red Ring prospects more fully described below (the “Projects”). The Pilot project also
includes recently optioned claims internal to the Almadex claim block.
The terms of the Option require Azucar to meet the following cash payment and work commitment schedule:
Cash Payments:
Making the following cash payments to Almadex:
(i) $100,000 USD, upon acceptance by the TSX Venture Exchange and minority shareholder approval by Azucar;
and
(ii) $300,000 USD for each Project which Azucar wishes to exercise the Option, after the completion of the
Exploration Requirements (defined below) but no later than the exercise of the Option.
Work Commitments:
Completing the following exploration activities on the Projects:
(i) at least 2,000 metres of drilling in the aggregate on one or more of the Projects, within eighteen (18) months of
the Effective Date; and
(ii) at least 3,000 metres of drilling on the specific Project which Azucar wishes to exercise the Option, within five
(5) years of the Effective Date
(collectively, the “Exploration Requirements”).
In addition to the above, upon at least 15,000 metres of drilling being completed on a specific Project either during the
Option period or thereafter, Azucar shall make a cash payment of $750,000 USD to Almadex.
Pilot Mountain Porphyry Copper-Gold Prospect, Nevada
The Pilot project covers an area of hydrothermal alteration developed in folded sedimentary rocks that have been
intruded by tonalite porphyry bodies exposed in drainages. In 2024 Almadex conducted extensive alteration and
geologic mapping along with soil sampling, IP geophysics and a drone -based magnetics survey. The alteration is
dominated by pyrophyllite and whit e mica. This alteration pattern is considered to be proximal to porphyry
mineralisation. The mapping identified several outcrops with evidence of porphyry -style veining. This includes veining
interpreted to represent early magnetite, A-type, syntaxial B-veins and late stage D-type quartz-sericite-pyrite veining.
A soil sampling program defined a broad zone of anomalous copper -molybdenum and gold coincident with high
chargeability from an IP survey and a distinct magnetic high. . Recently Almadex finalised an option agreement for
claims internal to the claim block where mining for Turqouise has been carried out historically and is ongoing . A drill
permit for the Pilot project has been recently approved. Azucar will focus on collating and interpreting the data with the
intention of developing concrete first pass drill plans for 2025.
Confusion Hills Porphyry-Epithermal Gold-Copper Prospect, Nevada
The Confusion Hills high sulphidation prospect covers a large alteration zone developed in volcanic rocks. On April 15,
2025 Almadex announced that to date 107 grab rock samples had been taken from outcrop, subcrop and float (grab
samples are selected samples and may not represent true underlying mineralisation). These preliminary results were
very encouraging as 6 of these samples returned over 0.1 g/t gold with 3 returning more than 0.5 g/t gold (up to 7.1 g/t
gold in a grab sample of subcrop and averagin g 1.6 g/t gold for all 6). Mapping in 2024 and 2025 defined a high
sulphidation/porphyry lithocap over an area of 1.6 km x 0.5 km. The lithocap displays complex alteration with central
zones of vuggy quartz with alunite and massive pyrophyllite zones. Soil sampling was carried out in 2024 and returned
anomalous Au, Mo and Cu with an association of Au within the central zone of alteration and a Mo anomaly on one
edge. Recently, a two -line test IP geophysical survey was conducted which identified a high charg eability feature
(interpreted to represent sulphide development) directly beneath the area of quartz alunite alteration and high gold in
grab samples at surface. A drone -based mag survey was also conducted to aid with interpretation. A drill permit has
been approved for the Confusion Hills prospect. Azucar will commence work on the project immediately including
detailed rock sampling to follow up previous results and induced polarization (“IP”) geophysical surveying.
Red Ring Porphyry-Epithermal Gold-Copper Prospect, Nevada
The Red Ring prospect covers an area of hydrothermal alteration developed in volcanic rocks adjacent to carbonate
rocks. Alteration mapping in 2024 identified a large alteration zone interpreted to be a porphyry lithocap extending 2.8
km NW-SE and by at least 1 km NE-SW. Mapping also defined a very strong surface pyrophyllite footprint of 1 km (NW-
SE) by 0.5 km (NE -SW). Preliminary rock sampling returned high values of pathfinder trace elements typically
associated with the lithocap alteration identified. Soil sampling conducted in 2024 also highlighted areas of anomalous
trace elements indicative of a high sulphidation environment above or near a porphyry system. Azucar plans further
sampling for 2025 along with some test geophysical studies in order to define areas for potential drilling.
J. Duane Poliquin, Chairman of Azucar commented, “We are very pleased that Azucar will now refocus its exploration
efforts on three exciting exploration targets in the Western USA and notably in the excellent jurisdiction for mineral
exploration and mining, Nevada. This begins a new chapter for Azucar and we look forward to commencing exploration
immediately.”
Azucar shares management and Board members with Almadex and the independent Directors of both companies
unanimously approved the Option, with the non-independent Board members declaring their interest and abstaining.
Almadex also holds a 19% interest in Azucar (see Almadex news release of November 7, 2024). Accordingly, Almadex
is a “related party” of Azucar and the option agreement will constitute a “related party transaction” (as each term is
defined in Multilateral Instrument 61 -101 – Protection of Minority Security Holders in Special Transactions (“MI 61-
101”)). The Company intends to rely on the specified markets exemption from the formal valuation requirement set
forth in subsection 5.5(b) of MI 61 -101. Shareholder approval of the Option by Azucar’s disinterested shareholders is
required under MI 61-101. The Company expects to seek such disinterested shareholder approval at its Annual General
and Special meeting of shareholders on June 26, 2025.
The Option is also subject to acceptance by the TSX Venture Exchange.
A material change report in connection with the Option will be filed within 10 days of the date hereof, which is less than
21 days before the parties entered into the Option. The Company believes this shorter period is reasonable and
necessary in the circumstances as the parties wished to enter into the Option as soon as practicable for sound business
reasons and the conditions of TSX Venture Exchange acceptance and disinterested shareholder approval by Azucar
are likely to take more than 21 days following filing of the material change report.
Qualified Persons
Morgan J. Poliquin, PhD, PEng, the President and CEO of Azucar and a Qualified Person as defined by National
Instrument 43-101 ("NI 43-101"), has reviewed and approved the scientific and technical contents of this news release.
The analyses reported were carried out at ALS Chemex Laboratories of Reno, Nevada using industry standard
analytical techniques. For gold, samples are first analysed by fire assay and atomic absorption spectroscopy (“AAS”).
Samples that return values greater than 10 g/t gold using this technique are then re analysed by fire assay but with a
gravimetric finish. Silver is first analysed by Inductively Coupled Plasma - Atomic Emission Spectroscopy (“ICP-AES”).
Samples that return values greater than 100 g/t silver by ICP-AES are then re analysed by HF-HNO3-HCLO4 digestion
with HCL leach and ICP-AES finish. Of these samples those that return silver values greater than 1,500 g/t are further
analysed by fire assay with a gravimetric finish.
About Azucar
Azucar is focussed on exploration of porphyry copper and gold targets in Nevada, USA. The Company also holds a
100% interest in the El Cobre copper-gold porphyry project (subject to net smelter return royalty interests) in Mexico.
On behalf of the Board of Directors,
“J. Duane Poliquin”
J. Duane Poliquin, P.Eng.
Chairman, Azucar Minerals Ltd.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within it, other than
statements of historical fact, are to be considered forward looking. Forward-looking statements in this news release include, among
other things: whether the Option will be accepted by the TSX Venture Exchange or whether Azucar minority shareholder approval will
be obtained; whether Azucar will make all or any cash payments under the Option; whether Azucar will complete all or any Exploration
Requirements; whether Azucar will exercise the Option in respect of any of the Projects; whether rock chip sampling or IP surveys at
Confusion Hills will be conducted; whether concrete drill plans at Pilot will be developed or effected; and whether further sampling or
test geophysical studies at Red Ring will be conducted. Although the Company believes the expectations expressed in such forward-
looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual
results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to
differ materially from those in forward -looking statements include market prices, exploitation a nd exploration successes, continued
availability of capital and financing, and general economic, market or business conditions. There can be no assurances that s uch
statements will prove accurate and, therefore, readers are advised to rely on their own eva luation of such uncertainties. We do not
assume any obligation to update any forward-looking statements, other than as required pursuant to applicable securities laws.
Contact Information:
Azucar Minerals Ltd.
Tel. 604.689.7644
Email: [email protected]
http://www.azucarminerals.com/