Azumah Files NI 43-101 Technical Report on the Wa Gold Project

ASX / TSX & Media Release
ASX Code - AZM 
TSX Code - AZR

www.azumahresources.com.au

Investment Highlights:

  • Wa Gold Project, NW Ghana

  • 430,000oz Proved and Probable Mineral Reserve

  • Feasibility Study completed for a 1.0Mtpa gravity/CIL gold plant

  • NI 43-101 and JORC Code reportable 1.02Moz  Measured & Indicated and 0.66Moz Inferred Mineral Resource 

  • 100% of 3,100km2 licences hosting over 150km of prospective Birimian greenstone belt.  Less than 10% effectively explored

  • 17% strategic investment in neighbour, Castle Minerals Limited

  • Board and management team of successful explorers, mining and corporate professionals
Issued Capital:
 
333.7M ordinary shares  
  
9.5M unlisted options   
 
3.5M performance rights
   
Directors & Management:
 
Chairman:
  Michael Atkins
 
Managing Director:
  Stephen Stone
 
Non-Executive Directors:
  Geoff M Jones
  Bill LeClair
 
Company Secretary:
  Dennis Wilkins

TORONTO, Oct. 11, 2012 /CNW/ - Azumah Resources Limited (ASX: AZM) (TSX: AZR) ("Azumah" or "the Company") announces that it has filed on SEDAR a technical report pursuant to National Instrument 43 -101 - Standards of Disclosure for Mineral Projects ("NI 43-101") on the Wa Gold Project summarising the Mineral Resource and Mineral Reserve estimates and the results of the Wa Gold Project Feasibility Study.  This report relates to Azumah's announcement of 27th August 2012.

The Feasibility Study demonstrates that the project is commercially viable, has no fatal technical or developmental flaws, and subject to a final investment decision and funding, could be commissioned in late 2014/early 2015.

Key features are:

  • 430,000oz "Stage One" Mineral Reserve - to be updated in early 2013;

  • 6 year initial mine life - to be extended through further exploration;

  • 92,000oz gold production in Year 1;

  • $144M Capital Cost (including all infrastructure and pre-production costs);

  • $802/oz life-of-mine cash operating costs (pre royalty) - $624 Year 1;

  • ~$40M per annum of free, post-tax cash flow;

  • 2.9 year capital payback period;

  • 2.0g/t Au life-of-mine feed grade (2.3g/t for first 3 years);

  • High metallurgical recovery (92.4%);

  • Excellent infrastructure and access to power and water; and

  • No community relocations required.

The Wa Gold Project Feasibility Study is based on Mineral Resource estimates for the Kunche, Bepkong, Julie and Collette deposits announced in March 2012 (Measured and Indicated 1.02Moz Au from 19.74Mt at 1.60g/t Au (consisting of Measured 315,000 oz Au from 5.19Mt at 1.89g/t Au and Indicated 701,000 oz Au from 14.54Mt at 1.50g/t Au) and Inferred 0.66Moz Au from 14.76Mt at 1.39g/t Au).

The declared Mineral Resources incorporated all drilling up to late 2011 but, due to assay delays at that time, did not include some excellent infill and extensional drilling results.

The Mineral Reserve excludes some 36,000oz Au currently classified as Inferred falling within the existing pit designs and similarly Inferred mineralisation at Collette - 79,000oz Au.

The Company will re-estimate its Mineral Resources in December 2012. This will include: the additional infill and extensional drilling; the results of Azumah's 2012 exploration programme which has extended mineralisation at each of the flagship Kunche, Bepkong and Julie deposits; and, mineralisation at the newly identified Aduane prospect between Kunche and Bepkong.

An updated Mineral Reserve estimate is scheduled for early 2013 to coincide with the anticipated receipt of key mining and environment permits.

For further information on the Wa Gold Project or Azumah in general please refer to the Company's website at www.azumahresources.com.au and www.sedar.com.

Competent Person's Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Nick Franey, who a full-time employee (General Manager Geology) of Azumah Resources Ltd.  Mr Franey is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and to qualify as a "Qualified Person" as defined in National Instrument 43 -101 - Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators.  Mr Franey is the Qualified Person overseeing Azumah's exploration projects and has reviewed and approved the disclosure of all scientific or technical information contained in this announcement.

For further information, including a description of Azumah's standard data verification processes, quality assurance and quality control measures, and details of the key assumptions, parameters and methods used to estimate the Mineral Resources set out in this report and the extent to which the estimate of previously declared Mineral Resources set out herein may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or relevant issues, readers are directed to the technical report entitled Azumah Resources Limited Wa Gold Project, Ghana 43-101 Technical Report", effective as of 27 August, 2012, available on www.sedar.com.

The reported Mineral Reserves have been compiled by Mr Harry Warries.  Mr Warries is a Fellow of the Australasian Institute of Mining and Metallurgy and an employee of Coffey Mining Pty Ltd.  He has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Qualified Person as defined in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards of November 2010, as well as a Competent Person as defined in the 'Australasian Code for Reporting of Mineral Resources and Ore Reserves' of December 2004 ("JORC Code") as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia. Mr Warries gives Azumah Resources Limited consent to use this reserve estimate in reports

Forward-Looking Statement

This release contains forward-looking information. Such forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend", and statements that an event or result "may", "will", "should", "could", or "might" occur or be achieved, and other similar expressions. In providing the forward-looking information in this news release, the Company has made numerous assumptions regarding: (i) the accuracy of exploration results received to date; (ii) anticipated costs and expenses; (iii) that the results of the feasibility study continue to be positive; and (iv) that future exploration results are as anticipated.

Management believes that these assumptions are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking information. Some of these risks, uncertainties and other factors are described under the heading "Risks Factors" in the Company's annual information form available on www.sedar.com.  Forward-looking information is based on estimates and opinions of management at the date the statements are made.  Except as required by law, Azumah does not undertake any obligation to update forward-looking information even if circumstances or management's estimates or opinions should change. Readers should not place reliance on forward-looking information and readers are advised to consider such forward-looking statements in light of the risks set forth in the Company's continuous disclosure filings as found at the (Canadian) SEDAR website.

SOURCE: Azumah Resources Inc

For further information:

Stephen Stone 
Managing Director 
Tel: +61 (0)418 804 564
stone@azumahresources.com.au 

Nathan Ryan - Australia
NWR Communications
+61 (0) 420 582 887
nathan.ryan@nwrcommunications.com.au

Joanna Longo - North America
Terre Partners
+1 416 238 1414
Jlongo@terrepartners.com