VANCOUVER, British Columbia, April 01, 2020 (GLOBE NEWSWIRE) -- Azucar Minerals Ltd. ("Azucar" or the "Company") (TSX-V: AMZ; OTCQX: AXDDF) announces that the Mexican federal government has mandated that all non-essential businesses, including mining and exploration, temporarily suspend operations until April 30 due to the COVID-19 virus.
Azucar has been working to raise awareness of COVID-19 amongst its workforce for several weeks now. In mid-March the Company arranged for a briefing by a medical professional for all employees, and the Company provided written material and products to all employees to help them limit the spread of the virus. Operations since early 2020 have been limited to one drill rig, and last week Azucar terminated its field activities and asked all remaining employees to take paid leave at home until April 15th. Given this government decree, Azucar will now ask employees to remain at home until April 30, pending further information from Mexican government health authorities.
In terms of the technical program at El Cobre, the Company has now completed its current drill program, and is compiling or awaiting assay results from the final three holes drilled as part of the program. As noted in the Company’s March 4, 2020, press release, the Company had an external consultancy with expertise in porphyry systems on site in March to provide a third-party review of the drill data, alteration and structural information collected to date to complement the company’s internal geologic efforts to define and refine the exploration program. Assay results from the last three holes in the current program will be released once they are all received and compiled.
J. Duane Poliquin, Chairman of Azucar stated: “We have been working with a skeleton staff at El Cobre for some time now, and with this decree are ceasing all activities except those essential to business continuity. We urge all of our stakeholders to take the necessary steps against the spread of this virus. Regarding El Cobre, desktop review of the technical data will continue as we seek to refine targeting at this large hydrothermal system where drilling has confirmed porphyry mineralization across a 5 km strike”.
Azucar is an exploration company with a mandate to thoroughly explore the El Cobre project in Veracruz, Mexico, which covers multiple gold-rich porphyry targets, as demonstrated by recent drilling. Azucar is permitted and funded for an active drill campaign in 2020. Azucar holds a 100% interest in the El Cobre project, subject to net smelter returns (“NSR”) royalty interests, assuming production from the property exceeds 10,001 tonnes per day of ore, totaling 2.25% which can be reduced to 2.0% though the payment of US$3.0 million.
On behalf of the Board of Directors,
Morgan J. Poliquin, Ph.D., P.Eng.
President, CEO and Director
Azucar Minerals Ltd.
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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. 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 and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements, other than as required pursuant to applicable securities laws.