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Azco Mining Updates Shareholders on Gold Mining and Other Activities

Posted on: Tuesday, 14 March 2006, 12:00 CST

GLENDALE, Ariz., March 14 /PRNewswire-FirstCall/ -- Azco Mining Inc. (OTC Pink Sheets: AZMN), a U.S.-based mining and exploration enterprise focused on gold, silver, copper and industrial minerals, today provided the following update to shareholders and investors:

To Our Shareholders and Investors,

This is to provide you with an update on the substantial progress we are making in transforming Azco into a viable operating company and on our efforts to begin monetizing the estimated $2.7 billion of in-ground assets under our control.

Ortiz Gold Project, New Mexico

The acquisition of the Ortiz gold project represented the successful first step of our new strategic agenda and focus on precious metals.

At Ortiz, we hold mineral rights to a huge area covering 90 square miles. Previous exploration has identified numerous exploration prospects. Drilling samples indicated approximately 2 million ounces of gold in several deposits, including 1 million ounces in the Carache and Lucas conceptual open pits. The geology offers superb potential for discovery of additional major gold deposits as well as significant copper deposits. Azco is continuing to analyze its large database of available geological, geochemical and geophysical information, focusing on the potential for new gold and copper discoveries.

A recent scoping study assessing the technical and economic aspects of open-pit mining of approximately 1 million ounces of gold from the Carache and Lucas deposits yielded encouraging results. Minerals Advisory Group (MAG), an independent geological engineering firm, conducted the study. MAG concluded, "The financial conclusions drawn from this study indicate a very favorable project employing high-pressure grinding rolls with gravity recovery and contract mining."

MAG's financial model showed production of 925,036 ounces of gold over 10 years at an average estimated operating cost of $230 per ounce of gold recovered. The capital cost was estimated at $38.2 million. At a gold price of $500 per ounce, net operating pre-tax cash flow (after deductions for refining charges, royalty payments and depreciation) would total $180.9 million. The report also stated that considerable upside exists in estimations of both contained ounces of gold and grade.

On the basis of these promising results, we are proceeding with additional studies aimed at further optimizing the project's economics. MAG and Independent Mining Consultants, Inc. (IMC), a mine engineering firm that specializes in ore body resource modeling and open pit design, are undertaking the additional work. IMC will redesign the conceptual open pits employing higher (current) gold prices and also will determine the effect of using a higher cut-off grade in the mine plan. We believe these studies are likely to result in a number of improvements in the project, including an increase in the total number of ounces contained in the new conceptual pits, an increase in the average grade processed and a decrease in the operating cost per ounce of gold produced. Results of these studies could further enhance the project's already attractive economics and are expected to be available in May 2006.

In addition to technical and economic aspects of the Carache and Lucas deposits, we intend to assess all factors important for successful mine development, environmental and permitting issues. After completion of technical studies and assessment of major risks, Azco expects to be in a sound position to formulate a plan for advancing the Carache and Lucas deposits toward production. With respect to financing new mine development, we are encouraged by the highly positive current climate for financing new gold mines. Given a favorable outcome of current studies, we believe financing could be arranged under favorable terms.

Black Canyon Mica Project, Arizona

This new mine development is already permitted and largely completed. The mine is planned to produce mica for the growing cosmetic, plastics and pigment industries. The by-product of feldspathic sand has a natural market in the rapidly expanding Phoenix construction market.

Since 1999, the company has spent more than $15 million on resource assessment and construction of production facilities. In 2002 the mine operated for several months on a limited basis and was successful in demonstrating it could produce high-quality products. However, additional capital is needed to upgrade the production facilities so that sustained throughput and profitable operations can be achieved. At full production, the project's economics are anticipated to be attractive and should be sufficient to support full-scale mining for many years.

The Black Canyon mica project has a substantial underlying asset value. A number of options are currently under consideration to translate this value into near-term benefit for Azco's shareholders. These options range from Azco retaining the project and eventually financing and operating it, to formation of a joint venture, to sale of the property while retaining a production royalty.

New Planet Micaceous Iron Oxide (MIO) Project, Arizona

The New Planet property contains a world-class resource of micaceous iron oxide, an industrial mineral valued around the world as an important coating pigment used in corrosion-control systems for structural steelwork. The New Planet property is an exceptional ore deposit characterized by high-grade, favorable metallurgy and a drilled resource sufficient to sustain an open pit mining operation for over 30 years. Quality deposits of MIO are a geologic rarity, with only a handful of primary suppliers worldwide, and none in North America. At today's MIO prices of around $0.50 per pound, the in-ground value of recoverable MIO in just that portion of the deposit that has been drilled is substantial. When developed, we expect this operation to produce MIO pigment for sale to paint manufacturers domestically and internationally.

Financial Audit

As many of you know, we have been working to place the company on an improved financial footing so it will be possible to arrange additional funding needed to advance our projects. It has been a top priority to bring our financial reports current. We filed our 2004 audited annual financial report in December 2005, and the 2005 annual financial report is close to completion. Filing of the required quarterly reports will follow. We expect to have everything current around the end of April. Once our filings are up to date, we will apply for trading of Azco's stock on the Over-the-Counter Bulletin Board.

Precious Metals Acquisitions

We continue to look for ways to accelerate our progress. We have identified a number of promising precious metal mining sites containing drilled resources. Two of these, on which we are making significant progress in negotiations, demonstrate excellent potential for early production. We hope to provide more detailed information within the next 30 days.

I believe the next several months will be an exciting time in the precious metals sector, and an exciting time for Azco as it builds its precious metals asset base and heads toward a production profile. We thank you for your patience and trust and reiterate our intention to monetize each of our projects in due time.

Pierce Carson Chief Executive Officer About Azco Mining Inc.

Azco Mining is a U.S.-based mining and exploration company focused on acquiring and developing gold, copper and industrial mineral properties. The company owns mineral lease rights to the Ortiz gold property in New Mexico, believed to contain 2 million ounces of gold; a high-quality mica mine and processing facility near Phoenix; and a world-class resource of micaceous iron oxide (MIO) in La Paz County, Ariz. Azco intends to build a portfolio of high- quality, diversified mineral assets with an emphasis on precious metals. To learn more about Azco Mining Inc., visit http://www.azco.com/ .

An investment profile about Azco Mining may be found at http://www.hawkassociates.com/azco/profile.htm .

For investor relations information regarding Azco Mining, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com . An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com/ and http://www.americanmicrocaps.com/ .

The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein.

Azco Mining Inc.

CONTACT: Frank N. Hawkins, Jr. or Julie Marshall, both of HawkAssociates, +1-305-451-1888, or info@hawkassociates.com, for Azco Mining

Web site: http://www.azco.com/http://www.hawkassociates.com/http://www.americanmicrocaps.com/http://www.hawkassociates.com/azco/profile.htm

Source: PRNewswire-FirstCall

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