Azumah Announces Excellent Drilling Results Continue

Artisanal workings at Josephine prospect (CNW Group/Azumah Resources Inc)

Figure 1: Wa Gold Project - Key Deposits and Prospects (CNW Group/Azumah Resources Inc)

Figure 2: Wa East Licences (CNW Group/Azumah Resources Inc)

Figure 3: Julie Deposit - Latest RC & diamond drilling results (CNW Group/Azumah Resources Inc)

Figure 4: Map of Josephine Area (CNW Group/Azumah Resources Inc)

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

www.azumahresources.com.au

Drilling to Commence at Josephine Prospect

  • Julie drilling confirms mineralisation outside of present resource envelope and depth continuity below base of current designed pits.
    Highlights include:    
    • 12.7m @  2.73g/t Au from 151m (AJUC602)
    • 11.7m @  2.01g/t Au from 128m (AJUCD624)
    • 10.0m @  3.18g/t Au from 116m (AJUC718)
    •   7.0m @  2.01g/t Au from 72m (AJUC726)
    •   5.1m @  2.14g/t Au from 210m (AJUCD729) 
    •   7.0m @  3.80g/t Au from 60m (AJUC735)
    •   7.0m @  5.39g/t Au from 141m (AJUCD737)
    • 13.0m @  5.11g/t Au from 106m (AJUCD738)
    •   4.0m @ 10.32g/t Au from 68m (AJDD006)
  • Collette deposit drilling returns more encouraging intercepts including:    
    • 14.0m @ 1.53g/t Au from 34m (ACORC214)
    •   4.0m @ 3.51g/t Au from 49m (ACORCD234)
  • Follow-up drilling to investigate anomalism and mineralisation at early stage Kjersti prospect returns:    
    • 20.0m @ 2.21g/t Au from 24m (AKJRC002)
    •   3.0m @ 2.18g/t Au from 29m (AKJRC005), and
        3.0m @ 4.12g/t Au from 42m 
  • Drilling to commence shortly at Josephine prospect to evaluate a series of gold anomalies and test for mineralisation in the vicinity of artisanal workings    
  • Mineral Resource update for all key deposits scheduled for end of Q4 2012    
  • Updated Feasibility Study and Mineral Reserve scheduled for end of Q1 2013     
  • AZM holds $16M in cash and listed investments    

    "The Wa East area is shaping up well in its own right and we are confident of delivering additional Mineral Resources and Mineral Reserves from here into the overall Wa Gold Project", comments Azumah Managing Director, Stephen Stone.     

    "The Company is now highly focused on testing its pipeline of targets and generating new areas of interest within its 100% owned, 3,100km2 licence holdings, the majority of which are still at an early stage of evaluation". 

TORONTO, Nov. 14, 2012 /CNW/ - Perth-based gold explorer and developer Azumah Resources Limited (ASX: AZM), (TSX: AZR) is pleased to report more excellent results from drilling at its Wa East licences.  In particular, at the Julie deposit, mineralisation has been extended outside of the current resource envelopes with continuity of mineralisation also confirmed well below the base of current shallow pit designs (Figures 1, 2 and 3).

The new Julie results, in addition to results from drilling at the early stage Collette and Kjersti prospects, confirm the Wa East area's growing importance within the overall Wa Gold Project and enhance the likelihood of additional Mineral Resources and Mineral Reserves being defined from the area (Tables 1, 2 and 3).

An update of Mineral Resources is underway for all key Wa Gold Project deposits that presently stand at a combined 1.02Moz Measured and Indicated and 0.66Moz Inferred.  This will include the results from an additional 58,000m of infill and extensional drilling undertaken at these deposits since the last resource estimate.

The updated Mineral Resource, and a review of various capital cost, operating cost and technical inputs included in the current Feasibility Study for the Wa Gold Project, will provide the basis for an update of Mineral Reserves scheduled for completion by end-Q1 2013.

Having completed all infill drilling necessary for the next upgrade of Mineral Resources and Mineral Reserves, the Company is now highly focused on testing its pipeline of targets and generating new areas of interest within its 100% owned, 3,100km2 licence holdings, the majority of which are still at an early stage of evaluation.

Julie

The latest drilling results from the granodiorite-hosted Julie deposit are consistent with previously announced results (refer to ASX/TSX releases 19th July 2012 and 10th Sept 2012). They confirm that Azumah is likely to expand the Julie deposit Mineral Resources from the currently declared 386,000oz Measured and Indicated and 181,000oz Inferred.

All of the latest holes have been drilled into two high-grade zones, each over 1km-long, at the eastern end of the 6km-long, shallowly north-dipping mineralised Julie host structure.  The results demonstrate that the mineralised zones maintain robust thicknesses well beneath the base of current designed pits, with the deepest intercept at 'Julie East' of 5.1m @ 2.14g/t Au (AJUCD729) occurring approximately 160m below surface.

Collette

At the meta-sediment hosted Collette prospect, approximately 10km to the northeast of Julie, recent drilling aimed at better understanding the controls on previously defined mineralisation returned best intercepts including 14m @ 1.53g/t Au from 34m (ACORC214) and 4.0m @ 3.51g/t Au from 49m (ACORCD234).  Several other intercepts reported above 2g/t Au.  A number of the RC holes were drilled with diamond tails to provide core for more detailed geological interpretation(Table 4).

Kjersti

Drilling at the early-stage Kjersti prospect, 7km west-northwest of Julie and hosted by the same meta-sedimentary unit as Collette, was undertaken to follow-up an initial drill-test by Azumah into this anomalous but under-explored region.  Several encouraging intercepts were returned including 20m @ 2.21g/t Au from 24m (AKJRC002) and 3.0m @ 2.18g/t Au from 29m (AKJRC005) including 3.0m @ 4.12g/t from 42m (Table 5).

Josephine

Drilling, comprising 94 planned holes for 7,500m of RC and diamond drilling, is about to commence at the Josephine prospect, 25km southwest of Julie.  Limited work by previous explorers at the southeastern end of a 6km northwest trending shear zone, returned several impressive RC intercepts including 37m @ 3.11g/t Au from 4m, 14m @ 2.97g/t Au from surface and 5m @ 5.17g/t Au from 33m (Figure 4 and Photos)

The drilling will evaluate several geochemical anomalies proximal to the shear zone and test for mineralisation in the vicinity of shallow artisanal workings.

Feasibility Study

The Feasibility Study (refer to ASX/TSX release dated 27th August 2012) for the Wa Gold Project confirmed that the project is an economically viable proposition with no technical or infrastructure related impediments to development. The Project would generate an average $40M of annual free cash flow after tax and royalties from a nominal 1.0Mtpa plant.

Azumah anticipates that it will be in a position to commit to project development in 1H 2013 whereupon it expects to have increased Mineral Reserves and progressed key permitting requirements.  The Company has already submitted its draft Environmental and Social Impact Study (ESIS) to the Ghana EPA as part of that process. A very positive recent event is the commencement by the Ghana Grid Company Limited (GRIDCo) of construction of the 161KV Wa-Han-Tumu transmission line that has been specifically routed to service the Wa Gold Project.

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


Table 1: Summary of Wa Gold Project Mineral Resources - 0.5g/t Au cut-off (CSA Global - March 2012)

                         

Cut-off
0.5 g/t Au
Measured Indicated Measured and Indicated Inferred
Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
(Mt) (g/t) (oz) (Mt) (g/t) (oz) (Mt) (g/t) (oz) (Mt) (g/t) (oz)
                         
Kunche 3.17 1.94 198,000 4.95 1.52 242,000 8.13 1.68 440,000 7.35 1.33 315,000
Bepkong 2.02 1.81 117,000 1.67 1.36   73,000 3.69 1.60 190,000 1.98 1.32   84,000
Julie       7.92 1.52 386,000 7.92 1.52 386,000 3.74 1.51 181,000
Collette                   1.69 1.45   79,000
Total 5.19 1.89 315,000 14.54 1.50 701,000 19.74 1.60 1,016,000 14.76 1.39 659,000
                         

Table 2: Summary of Wa Gold Project Mineral Reserves (Coffey Mining - August 2012)

           
Mineral Reserve Summary
(As of 21st Aug 2012) Proved Probable Contained Gold
Tonnes (Mt) Grade (g/t Au) Tonnes (Mt) Grade (g/t Au) oz Au(1)
Bepkong
Kunche
Julie
1.7
2.3
-
1.9
2.1
-
0.2
1.6
1.0
2.0
1.6
2.4
117,000
238,000
74,000
Total 4.0 2.0 2.8 1.9 430,000
           

* Values have been rounded

Table 3: Julie Deposit - Latest RC & DD drilling results

                   
Hole ID East North Depth Dip Azim From To Width Au
(m) (m) (m) (m) (g/t)
 AJDD006 597,551 1,115,816 107 -50 185 68.0 74.0 4.0 10.32
           incl. 71.0 72.0 1.0 57.14
 AJDD007 597,036 1,116,053 104 -50 185 62.0 68.0 6.0 2.30
 AJDD008 597,826 1,115,819   99 -50 185 58.0 59.0 1.0 3.17
             66.0 67.0 1.0 1.02
             89.0 93.0 4.0 1.57
 AJUCD602 597,702 1,115,992 183 -50 185 150.8 163.5 12.7 2.73
 AJUCD603 597,806 1,115,945 183 -50 185 131.0 133.5 2.5 3.75
             150.0 151.0 1.0 1.21
 AJUCD624 594,801 1,116,143 163 -50 185 128.0 139.7 11.7 2.01
 AJUC626 594,703 1,116,063 100 -50 185 68.0 70.0 2.0 2.48
             78.0 84.0 6.0 1.92
 AJUC629 594,403 1,116,079 140 -50 185 54.0 57.0 3.0 1.80
 AJUCD630 594,500 1,116,188 205 -50 185 153.0 155.0 2.0 2.97
             163.0 164.0 1.0 6.02
 AJUC632 594,299 1,116,029 103 -50 185 22.0 28.0 6.0 1.11
 AJUC634 594,199 1,116,057   97 -50 185 39.0 40.0 1.0 1.39
             60.0 64.0 4.0 1.52
 AJUC635 594,200 1,116,136 151 -50 185 80.0 89.0 9.0 1.77
             119.0 120.0 1.0 1.15
 AJUC636 594,110 1,116,120 109 -50 185 75.0 76.0 1.0 1.05
 AJUC645 594,601 1,116,044 103 -50 185 71.0 76.0 5.0 1.31
             85.0 86.0 1.0 1.67
 AJUC651 595,107 1,116,056   91 -50 180 52.0 55.0 3.0 1.57
 AJUC655 595,414 1,115,969   71 -50 180 17.0 18.0 1.0 2.71
             21.0 22.0 1.0 1.13
 AJUC656 595,415 1,116,028 101 -50 185 44.0 45.0 1.0 7.78
             63.0 64.0 1.0 45.44
 AJUCD657 595,414 1,116,112 163 -55 184 87.0 88.0 1.0 1.97
 AJUC661 596,097 1,116,104 103 -50 180 4.0 10.0 6.0 1.05
             20.0 21.0 1.0 1.34
             91.0 92.0 1.0 2.37
 AJUCD665 596,597 1,116,105 111 -50 185 12.0 13.0 1.0 1.73
             74.4 76.0 1.6 3.08
             85.2 87.0 1.8 4.91
 AJUCD689 596,952 1,116,240 198 -50 185 116.0 117.0 1.0 1.42
             132.6 136.0 3.4 1.85
 AJUCD692 597,254 1,116,114 192 -50 185 137.5 139.5 2.0 1.86
 AJUC707 594,656 1,116,092 138 -50 185 105.0 106.0 1.0 4.38
 AJUCD708 594,653 1,116,173 180 -50 185 134.2 135.3 1.1 1.75
             168.0 169.0 1.0 1.46
 AJUC709 594,550 1,116,028 105 -50 185 42.0 43.0 1.0 1.68
             85.0 87.0 2.0 3.94
 AJUCD711 594,551 1,116,187 177 -50 185 128.0 129.0 1.0 1.08
 AJUC712 594,453 1,116,095 145 -50 185 82.0 83.0 1.0 7.56
             92.0 93.0 1.0 1.19
 AJUC716 596,698 1,116,150 154 -50 185 67.0 69.0 2.0 1.15
             91.0 92.0 1.0 1.57
             104.0 105.0 1.0 2.13
             112.0 114.0 2.0 2.24
 AJUC718 596,702 1,116,243 207 -50 185 116.0 126.0 10.0 3.18
 AJUC720 596,655 1,116,197 182 -50 185 105.0 106.0 1.0 1.45
             112.0 113.0 1.0 3.17
             163.0 165.0 2.0 1.40
 AJUC724 596,794 1,116,090 131 -50 185 40.0 41.0 1.0 2.09
             64.0 65.0 1.0 1.35
 AJUC725 594,150 1,116,111 132 -50 185 72.0 75.0 3.0 4.33
 AJUC726 596,252 1,116,135 160 -50 185 72.0 79.0 7.0 2.01
 AJUC727A 594,148 1,116,177 166 -50 185 120.0 123.0 3.0 1.44
 AJUCD729 597,699 1,116,069 265 -50 185 209.6 214.7 5.1 2.14
             239.0 240.0 1.0 1.49
 AJUC732 595,952 1,116,059 133 -50 185 58.0 61.0 3.0 2.00
             106.0 107.0 1.0 1.93
 AJUC733 596,306 1,116,051 115 -50 185 39.0 41.0 2.0 3.83
             67.0 77.0 10.0 1.23
 AJUCD734 597,400 1,116,064 249 -50 185 168.0 169.0 1.0 22.44
 AJUC735 596,381 1,116,078 135 -50 185 60.0 67.0 7.0 3.80
             74.0 75.0 1.0 1.80
 AJUC736 596,424 1,116,000 87 -50 185 32.0 37.0 5.0 2.42
             50.0 52.0 2.0 7.16
 AJUCD737 597,149 1,116,224 234 -50 185 141.0 148.0 7.0 5.39
             156.0 158.1 2.1 2.06
             193.0 199.4 6.4 1.67
 AJUCD738 596,757 1,116,217 183 -50 185 106.0 119.0 13.0 5.11
             124.2 129.0 4.8 2.80

Table 4: Collette Deposit - Latest RC & DD drilling results

                     
Hole ID East North Depth Dip Azimuth From To Width Au
(g/t)
(m) (m) (m) (m)
 ACORC214 606,248 1,116,698 72 -50 185   34.0   48.0 14.0    1.53
           incl.   39.0   48.0   9.0    1.86
               66.0   67.0   1.0    1.74
 ACORC215 606,248 1,116,738 126 -50 185   78.0   79.0   1.0    1.50
               87.0   89.0   2.0    1.49
 ACORC219 605,999 1,116,178 70 -50 185   21.0   22.0   1.0    1.41
 ACORC221 605,999 1,116,261 70 -50 185   69.0   70.0   1.0    1.11
 ACORC229 605,249 1,116,014 60 -50 185     2.0     4.0   2.0    5.24
 ACORC230 605,249 1,116,049 70 -50 185   39.0   40.0   1.0 38.50
 ACORCD230 607,001 1,118,182 246 -50 180 191.0 195.0   4.0    1.03
 ACORCD232 606,961 1,118,042 156 -50 180 120.8 122.6   1.8    2.56
 ACORC237 606,802 1,118,151 190 -50 185   72.0   73.0   1.0    2.42
 ACORCD046 606,698 1,117,919 156 -50 185 109.0 111.0   2.0    1.48
             142.9 146.0   3.1    1.28
 ACORCD232 606,961 1,118,042 156 -50 135 117.0 121.9   4.9    1.16
           incl. 120.8 121.9   1.1    3.85
 ACORCD233 607,128 1,117,878 162 -50 135 149.0 150.0   1.0    1.04
 ACORCD234 606,801 1,118,098 159 -50 180   49.0   53.0   4.0    3.51
                   

Table 5:  Kjersti Prospect - Latest RC & DD drilling results

                   
Hole ID East North Depth Dip Azimuth From To Width Au
(g/t)
(m) (m) (m) (m)
 AKJRC002 588,954 1,121,568 90 -50 180   24.0   44.0 20.0   2.21
               88.0   90.0   2.0   1.77
 AKJRC003 589,022 1,121,512 75 -50 180   14.0   15.0   1.0 12.60
               48.0   50.0   2.0   1.59
               58.0   68.0 10.0   1.14
 AKJRC004 589,020 1,121,554 90 -50 180   49.0   50.0   1.0   2.26
               68.0   70.0   2.0   1.64
 AKJRC005 589,078 1,121,485 75 -50 180     8.0   18.0 10.0   1.36
               29.0   32.0   3.0   2.18
               42.0   45.0   3.0   4.12
 AKJRC006 589,077 1,121,526 90 -50 180   37.0   38.0   1.0   1.11
               45.0   46.0   1.0   1.00
 AKJDD007 589,020 1,121,477 135 -50 185   17.0   20.0   3.0   1.46
              32.0   33.0   1.0   1.78
              50.0   57.4   7.4   1.30
              73.0   74.0   1.0   8.85
 AKJCD008 589,015 1,121,604 177 -50 180 114.0 115.0   1.0 12.38
 AKJC010 588,897 1,121,497 80 -50 185   24.0   25.0   1.0   1.20
 AKJC011 588,903 1,121,601 181 -50 185 127.0 128.0   1.0   3.52
 AKJC012 588,703 1,121,499 127 -50 185   70.0   71.0   1.0   1.04
 AKJC034 592,243 1,120,730 86 -50 245     0.0     1.0   1.0   2.20
 AKJC035 592,286 1,120,751 85 -50 245   71.0   72.0   1.0   1.18
 AKJC037 593,188 1,121,393 97 -50 245   87.0   88.0   1.0   4.08
 AKJCD039 593,239 1,121,418 177 -50 245   29.0   30.0   1.0   1.25
               95.0   96.0   1.0   1.82
 AKJCD041 592,386 1,120,798 144 -50 245 124.0 125.0   1.0   3.17
             130.0 131.0   1.0   1.55

Competent Person's Statement

The scientific and technical 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 on the Wa Gold Project, 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 and Mineral Reserves set out in this report and the extent to which the estimate of previously declared Mineral Resources and Mineral Reserves 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 titled "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 report 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. 

 

Image with caption: "Artisanal workings at Josephine prospect (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20121114_C8273_PHOTO_EN_20695.jpg

Image with caption: "Figure 1: Wa Gold Project - Key Deposits and Prospects (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20121114_C8273_PHOTO_EN_20696.jpg

Image with caption: "Figure 2: Wa East Licences (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20121114_C8273_PHOTO_EN_20697.jpg

Image with caption: "Figure 3: Julie Deposit - Latest RC & diamond drilling results (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20121114_C8273_PHOTO_EN_20698.jpg

Image with caption: "Figure 4: Map of Josephine Area (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20121114_C8273_PHOTO_EN_20699.jpg

SOURCE: Azumah Resources Inc





For further information:

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

Robert Gundelach - Australia
NWR Communications
+61 (0) 451 896 420
robert@nwrcommunications.com.au

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