PERTH (miningweekly.com) – ASX-listed Azure Minerals has entered into a joint venture (JV) with copper/gold-miner Oz Minerals to accelerate exploration at its San Eduardo copper project in Mexico.

Oz Minerals would spend $13-million to earn a 70% stake in the project, Azure reported on Tuesday.

Over the next three years, Oz Minerals would need to spend $3-million to earn an initial 51% participating interest in San Eduardo. The company could then boost its stake to 70% by spending a further $10-million.

“To secure the involvement of Oz Minerals in this exploration project is a strong vote of confidence in Azure’s ongoing programme of regional exploration, target identification and project staking, confirming the effectiveness of our exploration team in Mexico,” said Azure executive chairperson Tony Rovira.

He added that the JV would enable Azure to accelerate its exploration programmes and develop its projects. Azure would initially manage the San Eduardo JV.

The San Eduardo property is a granted mineral concession covering 201 km2, and adjoins Azure’s 100%-owned El Tecolote project.

San Eduardo is prospective for porphyry copper deposits with associated high-grade breccia and skarn copper, lead and zinc mineralisation.

The planning of the San Eduardo work programme is at an advanced stage and field work would start shortly.

Oz Minerals would spend $300 000 on the first phase, which would comprise geological mapping and surface sampling, an airborne magnetic and radiometric survey, induced polarisation surveying and drilling. This phase would be completed by the end of 2010.

Meanwhile, Azure would also start exploration on the El Tecolote property. Production ceased in the early 1980s owing to low metals prices at the time, and Azure noted that there was excellent brownfield potential for substantial unmined copper/zinc mineralisation surrounding the mine.

Oz Minerals owns and operates the Prominent Hill copper/gold mine in South Australia. Last year, it sold its other mines to China’s Minmetals.