Azure's Spectacular Andover Project Could Deliver Big Returns

Tony Rivera, managing director of Azure Minerals, presented recently at a conference about the company's exciting lithium discovery at their Andover project in Western Australia. The project was acquired in 2020 and since then, two nickel sulfide deposits have been discovered. Recent drilling has returned some of the highest-grade lithium assays in Western Australia, demonstrating the project's potential to host substantial lithium resources.

The maiden exploration target or lithium mineralization is 100 to 240 million tonnes, at grades of 1-1.5% Li2O. This target size could potentially put Andover in the top 10 lithium projects globally, even in the top 5 at the upper end of the range. The lithium opportunity was recognized early by both Azure and SQM, the world’s 2nd largest lithium producer. SQM approached Azure and offered ~$20M for 20% of the project, a strong endorsement of Andover’s potential.

A large 100,000 metre drill program is underway in 2023 to support a maiden mineral resource estimate in Q1 2024. The project is ideally located in the Pilbara region of WA, near infrastructure like gas pipelines, water pipelines, and power lines. There is access to ports for export. The location provides a unique opportunity to develop a mining and processing operation.

Hundreds of lithium-bearing pegmatites

Rock chip sampling returned very high lithium grades at the surface. Since March 2022, Azure has been aggressively drilling with diamond and RC rigs focused on Target Area 1. Over 50 diamond and 100 RC holes have been completed so far, totalling ~35,000 metres. Drill spacing of 100m x 50m will support a mineral resource estimate.

The pegmatites are continuous for over 2km and stacked, with remarkably thick mineralized zones of over 100m true width. Some exceptional results were reported like 209m at 1.4% Li2O and 183m at 1.2% Li2O. These are some of the widest lithium intersections globally.

The lithium mineralization is visible spodumene, occurring as coarse white-grey crystals but also as fine-grained zones. The presence of visible spodumene allows confident targeting ahead of receiving final assay results. More stunning high-grade results over 100m widths are expected as drilling continues.

Drilling is nearing completion at Target Area 1. Two rigs have moved to Target Area 2, where high-grade surface samples and visible spodumene indicate strong potential. Target Area 3 will also be tested shortly. Six rigs are currently operating across two target areas and further results will be released as drilling progresses.

Scale and Grade

The large exploration target of 100-240Mt @ 1-1.5% Li2O demonstrates the scale potential at Andover but extensive further drilling is required to convert this to a mineral resource. 100,000 metres is budgeted for 2023 and drilling will likely continue through 2024. Metallurgical and scoping studies have commenced already. The scoping study aims for completion in 2024.

In summary, Andover is an exciting new lithium discovery in WA with the potential to be a top 5 global lithium project. Aggressive drilling and studies are underway to advance the project. The location is ideal for future development. Further assay results are pending and will expand on the remarkable widths and grades intersected so far. Azure Minerals is well-positioned to capitalize on the growing lithium market with this outstanding new project. Investors have recognized the potential, with Azure's share price increasing 10-fold over the past year. Exciting times lie ahead as the project progresses towards mineral resources, scoping studies and beyond.

Azure Minerals' Andover lithium project could potentially be a good investment opportunity

• Large exploration target of 100-240 million tonnes at grades of 1-1.5% Li2O indicates potential for Andover to become one of the top 5 global lithium projects if exploration continues to deliver.
• Ideal location with access to infrastructure provides a clear development path.
• Backing from major lithium producer SQM validates the project's prospects and provides technical expertise.
• Aggressive drilling campaign is delivering exceptional widths and grades, with more results pending. Rapid resource definition is underway.
• Early metallurgical and scoping studies will derisk the project and demonstrate economic potential.
• Massive 10x increase in Azure's share price over the past year shows market recognition of potential. Still early days.
• Strong lithium market fundamentals with surging demand from the EV industry and constrained supply.

Always consider the risks

• Andover is still an early-stage exploration project. Further drilling and studies are required to prove up resources and viability.
• Development risks around mining licences, cost overruns, lithium processing, etc.
• Market sentiment towards lithium explorers could change depending on lithium prices.

Overall, Andover presents an exciting speculative investment opportunity, with significant upside potential if exploration continues to deliver results. However, risks remain given the project's early stage. Investors should assess their own risk tolerance and investment time horizon when considering projects like Andover.

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