Azure Minerals has recommenced diamond drilling at its wholly owned El Tecolote Project in Mexico with an increased exploration budget from its joint venture partner, Japanese Government organization Japan Oil, Gas and Metals National Corporation.

Following the evaluation of positive results received to date, JOGMEC has increased its 2011 to 1212 total budget to USD 2.27 million to include an additional 1,000 meters of diamond drilling within the current stage of the El Tecolote exploration program.

Situated between the company’s San Eduardo and La Tortuga Projects, El Tecolote covers 178 square kilometers of land containing abundant evidence of base metal mineralization with potential for both porphyry copper and skarn copper, zinc and silver deposits.

The El Tecolote Mine which previously produced 1.4 million tonnes at 1.9% copper, 7% zinc and 47 grams per tonne silver closed in 1984 due low commodity prices with unmined copper and zinc mineralization remaining around the old mine workings.

An intensive USD 1.5 million exploration program has identified several new targets including Reyna del Cobre, extensions of the El Tecolote Mine and several nearby porphyry copper prospects all of which will be tested by the increased 4,000 meter drilling program.

JOGMEC manages Japan's stockpiling of oil, liquefied petroleum gas and rare metals including the construction of national LPG stockpiling bases.

Under the terms of the joint venture, JOGMEC will spend USD 5 million on exploration over three years for a 51% interest in El Tecolote and can earn an additional 19% stake by spending a further USD 8 million during the following three years which would increase the interest to 70%.

Importantly, these funds not only ramp up exploration at the highly prospective El Tecolote Project but provide a huge vote of confidence for Azure.

(Sourced from www.proactiveinvestors.com.au)