Azul Ventures Generates High Grade Magnetite Concentrate from its Caballo Blanco Project - Seite 2

Sample No.	Iron	Manganese	Phosphorus	Sulphur	Silicon Dioxide	Titanium Dioxide	Vanadium
4723	45.78%	0.044%	0.219%	0.008%	26.6%	0.96%	0.259%
4724	46.32%	0.036%	0.466%	0.006%	27.2%	1.11%	0.272%
4725	44.68%	0.065%	0.099%	0.008%	29.3%	1.22%	0.283%

BULK SAMPLING

A 100 tonne bulk sample was randomly collected from two different mine dumps, which was considered approximately representative of the overall material. A loader deposited the material into trucks which transported the material to a crusher/magnetic separator plant at La Higuera, a distance of nine kilometres away, where it was treated. The sample was not collected as a basis for the calculation of tonnage and grade of a resource, but to determine the practicality of loading, transporting and treating the dump material. Analytical results received are much better than anticipated, suggesting a considerable saving on transport and treatment costs than originally assumed, which has the potential to make the project economic.

A high grade magnetic concentrate was produced from the high grade dump material. Results are as follows:

HEAD GRADE

Total iron - 58.76% Fe
Magnetic iron - 43.10% Fe

CONCENTRATE GRADE

Total iron - 66.97% Fe
Magnetic iron - 63.70% Fe

The samples were analysed at Cesmec laboratory in Santiago, Chile, which is the laboratory used by the owner of the treatment plant for commercialization of the magnetite concentrate. Azul has signed a profit sharing agreement with the owner of the plant, based on revenue received from sale of the concentrate.