The latest assays included 16.2m grading 2.1% nickel and 0.75% copper from 347m downhole, including higher grade narrower intervals such as 8.5m at 2.8% nickel and 1% copper.

The intersection was made almost precisely where modelled, giving the explorer optimism to believe the 1050m long and plus-200m deep conductive body "may represent a substantial nickel-copper deposit".

Drilling is continuing with assays from another two holes awaited.

Azure plans to undertake 30,000m of diamond drilling next year.

Late last month the company said it was raising A$37 million by issuing new shares priced at 74c each.

Shares in Azure were down 1% to 77c in early trade, capitalising the company at $125 million.