Azucar Minerals Ltd. announced that it has commenced drilling a second hole into the large lithocap target discussed. As previously announced on May 27, 2022, the first hole passed through typical clay dominant lithocap alteration into phyllic alteration which transitioned to propylitic and at depth intense biotitic potassic alteration and is interpreted to have intersected a peripheral part of a porphyry system beneath the lithocap. The second hole is directed at a shallow angle to the north and has been designed to intersect the high chargeability anomaly at depth, as well as a zone of circular concentric fracturing interpreted to represent an intrusive centre, all within the lithocap alteration footprint.

The target area is defined by several overlapping target methodologies, including geophysics, mineralogy, geochemistry and past drilling campaigns at the property which have returned significant high grade porphyry copper and gold assays from multiple zones which appear to mantle and surround this area in a roughly arcuate shape of high magnetic response. This area has been targeted for drilling on the basis of the following data set: 2021 mineral vectoring study (“MVS”) completed at the CODES Analytical Laboratory of the University of Tasmania utilizing chlorite and epidote samples collected from the El Cobre project in 2021; Mineral vectoring has been established as an effective tool for exploration targeting at porphyry projects around the world through published studies at systems such as the El Teniente, Resolution, Arizona and Batu Hijau, porphyry systems; The MVS indicates that the El Cobre district likely contains a fertile medium to large sized porphyry system; The most prospective area in the MVS is located in the centre of the project (approximately 1 km southeast of the established resource at the Norte target) where there has been little previous exploration drilling; This area coincides with a deep IP geophysical anomaly which does not crop out, within an area of moderate magnetic response. The deep IP anomaly is the deep core to the broad near surface anomaly which encompasses all the currently known areas of porphyry mineralisation on the project; Prior to this program, the closest hole to this deep core IP anomaly, which did not test the anomaly, intersected intense quartz pyrite sericite (QSP) phyllic alteration which provides further support to this new target representing a possible porphyry centre; The MVS target also overlaps with a large area of mapped pyrophyllite (approximately 700 metre (E-W) x 550 metre (N-S)), an alteration mineral often observed overlying porphyry copper-gold mineralisation; Recent spectral mineral mapping and sampling in this area has further defined a strong alteration signature with clear zoning including a central diaspore-pyrophyllite-shallow alunite/dickite and concentric halos of paragonitic and muscovitic white mica and inner propylitic epidote halo; Observed illite crystallinity shows consistent high crystallinity over the entire target.

Iron oxide rockchip mapping shows a hematite core zone and a goethite halo as well.