Azumah Announces Excellent Drilling Results Continue
ASX / TSX & Media Release
ASX Code - AZM
TSX Code - AZR
Drilling to Commence at Josephine Prospect
Julie drilling confirms mineralisation outside of present resource
envelope and depth continuity below base of current designed pits.
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
Mineral Resource update for all key deposits scheduled for end of Q4
Updated Feasibility Study and Mineral Reserve scheduled for end of Q1
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.
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.
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).
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).
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.
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.
Table 1: Summary of Wa Gold Project Mineral Resources - 0.5g/t Au cut-off (CSA Global - March 2012)
0.5 g/t Au
|Measured||Indicated||Measured and Indicated||Inferred|
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)|
* Values have been rounded
Table 3: Julie Deposit - Latest RC & DD drilling results
Table 4: Collette Deposit - Latest RC & DD drilling results
Table 5: Kjersti Prospect - Latest RC & DD drilling results
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.
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:
Tel: +61 (0)418 804 564
Robert Gundelach - Australia
+61 (0) 451 896 420
Joanna Longo - North America
+1 416 238 1414