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PERTH, AUSTRALIA, Sept. 18, 2012 /CNW/ - Azimuth Resources Limited (ASX
and TSX: AZH) (the "Company" or "Azimuth") is pleased to announce the
acquisition of additional tenure in Guyana.
Acquisition of 576km2 to bring Azimuth's total gold land package to 8,786km2.
Ground acquired contains areas with extensive artisanal workings.
Previous modern exploration limited with trench result of 13.5m at
4.9g/t Au and 6m at 5.18g/t Au not drill tested.
Newly acquired ground accessible via existing roads within Guyana's
Over the past several months Azimuth's Guyana based management team has
endeavoured to expand the Company's land position in Guyana by
following a strategy focused on the acquisition of tenements which
cover persistent structures showing an association with gold
mineralisation within the Company's key area in the Omai region of
We are pleased to announce the acquisition of a further 576km2 of new tenements which add substantive and tangible prospectivity to
Azimuth's already existing portfolio. Azimuth's total gold land
position now amounts to 8,786km2.
The newly acquired tenements infill approximately 50% of the gap between
West and East Omai, extend the West Omai project further west, include
drill ready targets such as surface channel samples of 13.5m @ 4.87 g/t
Au, the oldest hard rock gold mine in Guyana, greenstone belt
immediately to the east and west of the Omai Gold Mine (3.7Moz
produced) and areas which have witnessed prolific historic and present
day artisanal mining.
Azimuth now controls tenure across approximately 240km of strike of the
Guiana Shield gold belt.
Details of the Acquisition
The new tenements have been acquired through contracts with 6 different
vendors. Each deal allows Azimuth to purchase 100% of mineral rights
covered by the properties through the payment of modest staged cash and
equity payments (subject to regulatory approvals) and in some cases
An outline view of all recent acquisitions is presented in Figure 1 and
details of newly acquired regions are given below.
Figure 1: Map showing location of additional tenements.
9 Mile - Honey Camp Region
10km strike of the Omai-Hicks-Kaburi Corridor located 26 km NW of the
History of artisanal production dating from 1916 with almost every creek
worked within the contained 10km strike length of the Omai-Hicks-Kaburi
Drill ready targets including previously undrilled surface channel
samples of 13.5m @ 4.9g/t Au, and sparsely drilled other targets
including trench samples of 3.45g/t Au over 22.7 metres.
Previous production from 9-mile open pit of 71,000 ounces from 118,000
tonnes of material for a recovered grade of 18.7 g/t Au.
Within trucking distance of potential mine development at Hicks /
The 9 Mile - Honey Camp property is located 26km to the northwest of the
Smarts deposit and within the northwesterly trending Omai-Hicks-Kaburi
corridor and is comprised of 37.3 km2 of tenements. The property can be accessed by unimproved road from the
Company's existing Hicks camp in a journey of little over an hour.
The winning of gold in the 9 Mile - Honey Camp area began in 1916 and by
1936 almost every creek within the property's boundaries had been
worked. In addition considerable eluvial workings on hill slopes were
developed and sporadic working of outcropping quartz veins also
occurred with the largest working being at the Rainbow Vein where a
vein of 6 feet in width was worked for a strike of 100 feet by open cut
methods. Work undertaken in 1948 by Demerara Mining included trenching,
1,000 feet of adits and 300 feet of drifting. The best results were
returned from the Rainbow Vein where grades of between 0.2 and 0.6
oz/ton were returned over widths of 36-60 inches and a strike of
approximately 500 feet.
In the 1980's and 1990's the present vendors of the property mined the
9 Mile deposit to a depth of 25 metres (see figure 2) and removed an
estimated 420,000 tonnes of material, of which approximately 118,000
tonnes was ore which produced 71,113 ounces of gold, confirmed as
sold to the Guyana Gold Board. Thus for the 9 Mile deposit a
recovered grade of 18.7 g/t Au is indicated. Gold was recovered using
sluices and later centrifugal recovery systems with no chemical
Historic mining by the present owners at the 9 Mile deposit focused on
one main vein approximately 36 metres long and 3 metres thick and
plunging 20 degrees to the south south-east. The vein has a
mineralized alteration halo of approximately 0.5 to 4.0 metres
Figure 2: Photo showing the water filled 9 Mile pit which was exploited
in the 1980's and 1990's.
Between 2010 and 2011 TSX-V listed Riva Gold Corporation conducted a
campaign of mapping, airborne radiometric and magnetic surveys, chip
sampling, trenching and drilling of known historic prospects. After
drilling 13 diamond core holes for 2,224m at 9 mile, and 15 holes for
2,884m at 3 of 12 prospects at Honey Camp, Riva returned the property
to the owners.
Azimuth considers that the work conducted by Riva was cursory in nature
and by no means systematically tested the property's full potential,
for the following reasons:
Riva drill tested less than 500 metres of 10km of strike length at Honey
Riva did not conduct systematic regional exploration and only tested
previously known bedrock prospects;
Drilling by Riva at Honey Camp targeted mineralisation vertically
beneath trench results as such it did not test the possibility of
Near the 9 Mile pit, channel sampling by Riva at the Edge prospect
returned 13.5m @ 4.9g/t Au which was not followed up; and
At the 9 Mile pit, the limited drilling conducted did not substantively
test the potentially of the main vein mineralisation.
Riva's testing of the potential of known prospects was limited to but a
few holes. Nonetheless Riva did produce several ore grade trench and
drill intersections including (within the vicinity of the 9 Mile pit),
DDH 9M-11-01 which intersected 11.3m @ 2.73g/t Au from 52 metres; and
DDH 9M-11-09 which intersected 10m @ 1.47g/t Au from 50 metres.
Furthermore at the Edge prospect located approximately 1.5 kilometres to
the west of the 9 Mile pit, channel sampling of artisanal workings
returned 13.5m @ 4.9g/t Au. This result was never tested by drilling
as the results of this channel sampling were received after Riva had
relinquished the property.
Azimuth believes potential still exists at 9 Mile and it warrants
The main vein and other mineralisation to be tested systematically;
Follow up of the channel sampling at the Edge prospect; and
Regional exploration geochemistry and drilling.
Results at Honey Camp
At the Honey Camp prospect, Riva tested several historic bedrock
prospects but did not undertake regional geochemistry or drilling
through cover to test the greater potential strike of these prospects.
Three historical vein systems, the Rainbow, Alma and Camp veins, located
within a 2.4km by 0.9km area was tested by mapping and trenching
followed by 16 diamond drill holes. Two additional historical vein
systems within the Area, the Brian & Brenda and Sobers Hills veins,
were examined by mapping and trenching. The best result untested by
drilling from this area was a trench which returned a result of 5.18
g/t Au over 6 metres.
Essequibo/Monkey Pot Property
Located 3km east of the Omai Gold Mine (3.7Moz production).
Properties encompass a 15km strike portion of the same
structural-stratigraphic corridor which hosts the Omai gold mine.
Intense artisanal workings in all creeks draining Monkey Pot Hill.
The Company has acquired approximately a 15km by 5km wide portion of
greenstone belt commencing 3km west of the Omai gold mine. The area is
accessible from Georgetown via a 180km drive along the
The area is almost completely covered by alluvial deposits of the
Essequibo river or the regional cover of white sand. Apart from gravel
deposits associated with paleochannels of the Essequibo and the streams
draining Monkey Pot Hill the area has not seen any significant
artisanal mining and GGMC stream sediment sampling in the area only
returned low values. Lack of tangible gold at surface in the area's
drainage is attributed to cover masking underlying potentially
The Company's recently flown geophysics shows the magnetic signature of
the Omai greenstone belt continue through the Essequibo properties.
Importantly the magnetics appear to show that the Wenot Shear
associated with the 1.3Moz Wenot pit of the Omai gold mine and which is
known to strike east-west strikes through the Essequibo properties. A
detailed inspection of the magnetic data shows the Wenot mineralisation
is associated with a discontinuous 1km long linear magnetic high and
that several similar discontinuous magnetic highs occur along the Wenot
shear zone within the Essequibo property. Thus the property presents
several direct geophysical targets along a known gold mineralised shear
Further prospectivity of the Essequibo property is present at Monkey Pot
Hill which lies in the north east corner of the Property. Monkey Pot is
a roughly circular dome shaped lateritic hill of some 250m elevation
and approximately 2km diameter. Here, creeks drain the hill in a
radial pattern and every creek that drains from the hill has been
worked for gold into their headwaters. Monkey Pot lies on an east-west
striking magnetic linear feature parallel to the Wenot shear which lies
approximately 3km to the south.
The Kanaimapu - Derire Property
11 kilometre strike Length of the Omai greenstone belt.
Prolific artisanal workings in the Kanaimapu and Derire drainage System.
Lateritic terrain never subject to modern exploration.
Oldest hardrock mine in Guyana located at Kanaimapu.
The Kanaimapu - Deire properties lie approximately 5km to the east of
the Essequibo property with the Great Falls Amerindian Reservation
interposed between. The Kanaimapu - Derire properties cover an 11km by
4km area of the Omai greenstone belt. The terrain is hilly and in situ
laterites dominate the regolith.
The Kanaimapu mine was the first bedrock mine in Guyana opened and
operated during 1894 and produced approximately 1,000 ounces of gold.
Creeks surrounding the mine and over a strike length of 7km have been
intensively worked for alluvial gold since the 1880s to the present
day. The eastern limits of the alluvial workings are found at Derire
Creek, where white sand cover begins.
Competent Person's Statement
The scientific and technical information in this news release is based
on information compiled by Mr. Richard Monti who is a member of the
Australasian Institute of Mining and Metallurgy. Mr. Monti is a
Director of Azimuth Resources Ltd. Mr. Monti 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 a qualified person as defined in
National Instrument 43-101. Mr. Monti consents to the inclusion in this
news release of such information and approves such information in the
form and context in which it appears.
For a description of Azimuths data verification process, quality
assurance and quality control measures, the effective date of the
mineral resource and mineral reserve estimates contained herein,
details of the key assumptions, parameters and methods used to estimate
the mineral resources and reserves set out in this report and the
extent to which the estimate of mineral resources or mineral reserves
set out herein may be materially affected by any known environmental,
permitting, legal, title, taxation, socio-political, marketing or other
relevant issues, readers are directed to the technical report entitled
"Technical Report - West Omai Gold Project, Guyana" dated May 30, 2012.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information, including
statements concerning the Company's projects, exploration results,
proposed exploration, and other matters. Any statements that express
or involve predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance (often, but not
always, using words or phrases such as "expects", "is expected",
"anticipates", "plans", "likely", "projects", "estimates", "assumes",
"intends", "strategy", "goals", "objectives", "potential" or variations
thereof or stating that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved, or
the negative of any of these terms and similar expressions) are
Forward-looking statements are subject to a variety of known and unknown
risks, uncertainties and other factors that could cause actual events
or results to materially differ from those reflected in the
forward-looking statements, including, without limitation: inherent
uncertainties and risks associated with mineral exploration;
uncertainties related to the availability of future financing;
uncertainties related to the outcome of studies; uncertainties relating
to fluctuations in gold or uranium prices; the risk that Azimuth's
title to its properties could be challenged; uncertainties related to
general economic and financial conditions; and uncertainties related to
fluctuations in Azimuth's share price. This list is not exhaustive of
the factors that may affect any of Azimuth's forward-looking
statements. Forward-looking statements are statements about the future
and are inherently uncertain, and actual achievements of Azimuth or
other future events or conditions may differ materially from those
reflected in the forward-looking statements due to a variety of risks,
uncertainties and other factors, including, without limitation, those
referred to in the Company's Annual Information Form under the heading
"Description of the Business - Risk Factors" and elsewhere.
Azimuth's forward-looking statements are based on the assumptions,
beliefs, expectations and opinions of management as of the date hereof
and which Azimuth believes are reasonable in the circumstances, but no
assurance can be given that these expectations will prove to be
correct. These assumptions include, but are not limited to, that there
will be no material adverse change affecting the Company or its
properties and such other assumptions as set out herein. Azimuth
disclaims any intention or obligation to update or revise
forward-looking statements if circumstances or management's beliefs,
expectations or opinions should change, except as required by law. For
the reasons set forth above, undue reliance should not be placed on
Image with caption: "Figure 1: Map showing location of additional tenements. (CNW Group/Azimuth Resources)". Image available at: http://photos.newswire.ca/images/download/20120917_C7274_PHOTO_EN_17995.jpg
Image with caption: "Figure 2: Photo showing the water filled 9 Mile pit which was exploited in the 1980's and 1990's. (CNW Group/Azimuth Resources)". Image available at: http://photos.newswire.ca/images/download/20120917_C7274_PHOTO_EN_17994.jpg
SOURCE: Azimuth Resources
For further information:
Chief Operating Officer
Financial Controller/Company Secretary