Azumah Resources Limited - 1.5km Anomalous Gold Trend Confirmed Between Flagship Deposits

ASX / TSX Media Release
ASX Code - AZM
TSX Code - AZR
www.azumahresources.com.au

 

Investment Highlights:

  • NI 43-101 and JORC Code compliant  0.65MozMeasured &Indicated and 0.52Moz Inferred Mineral Resource at Wa Gold Project, NW Ghana
  • 100% of 3,100km2licences hosting over 150km of prospective Birimian greenstone belt. Less than 10% effectively explored
  • Feasibility Study nearly completed for multi-pit, +1.0Mtpa, <100,000oz per year mining and gravity / CIL operation
  • Pipeline of drill-ready targets
  • Aggressive 250,000m, 2011/12 drilling programmefocused on resource discovery and increase
  • + 15% strategic investment in neighbour, Castle Minerals Limited
  • Board and management team of successful explorers, mining and corporate professionals

Issued Capital:
332.4M ordinary shares
9.5M unlisted options
2.0M performance rights

Directors& Management:

Chairman:
Michael Atkins

Managing Director:
Stephen Stone

Non-Executive Director:
Geoff M Jones

Company Secretary:
Dennis Wilkins

TORONTO, Feb. 28, 2012 /CNW/ -

  • RC drilling indicates Bepkong South and Aduane prospects lie on a  1.5km anomalous geochemical trend
  • Supports belief that Kunche and Bepkong are components of a larger,  system of interconnected mineralised structures
  • Increases likelihood of the delineation of additional shallow open  pitable resources close to the proposed location of the Wa Gold Project  plant, north west Ghana
  • Additional off-trend intercepts indicate possibility of other mineralised  structures
  • Select intercepts include:
    • 3m @ 9.17g/t Au from 27m (BRC321)
    • 10m @ 4.43g/t Au from 140m (BRC315)
    • 4m @ 4.43g/t Au from 43m (BRC317)
    • 8m @ 4.18g/t Au from 40m (BRC329)*
    • 6m @ 2.78g/t Au from 23m (BRC361)
    • 4m @ 10.33g/t Au from 47m (KRC593)
    • 14m @ 2.15g/t Au from 62m (KRC600)
    • 4m @ 9.34g/t Au from 20m (KRC648)* (*4m composite samples)
  • Follow-up RC programme to evaluate continuity and define Inferred  Mineral Resource to commence shortly
  • Azumah's own sample preparation lab to be installed in March to speed  up assay turnaround times and exploration

Azumah Resources Limited ("Azumah" or the "Company") (ASX: AZM, TSX: AZR) reports that it has received encouraging intercepts from follow-up drilling between its adjacent flagship Kunche and Bepkong deposits that support the likelihood of the delineation of new, shallow open pitable resources close to the proposed location of its Wa Gold Project processing plant, northwest Ghana.

Results from recent drilling imply that mineralisation intersected at the Bepkong South and Aduane prospects may sit at either end of a 1.5km north-northwest trending zone of surface geochemical anomalism (Figure 1).  Intercepts such as 10m @ 4.43g/t Au from 140m (BRC315) and 6m @ 2.78g/t Au from 23m (BRC361) suggest a continuity to the mineralisation.

This association of mineralisation with a north-northwest trend is already recognised at the northern end of Kunche, which hosts consistent mineralisation over 1.4km, and on the eastern margin of Bepkong. Other new mineralised intercepts such as 4m @ 10.33g/t Au from 47m (KRC593) and 4m @ 9.34g/t Au from 20m and offset from the Aduane trend, indicate the possibility for parallel or other mineralised structures.

This latest two-phase drill programme comprised a first phase of 29 reverse circulation (RC) holes for 3,174m directed at following-up specific intercepts from a previous drilling programme (refer ASX announcement dated 6th October 2011) that returned 14m @ 2.31g/t Au from 13m (KRC478), 16m @ 2.34g/t Au from 23m (KRC480) and 6m @ 15.60g/t Au from 53m (BRC230).

Phase two comprised 110 RC holes for 13,392m along fence lines spaced at 400m - 800m and orientated normal to the geochemical trend.  It was designed to test for mineralisation along the geochemical anomaly and for mineralisation within the broader area between Kunche and Bepkong.

Best intercepts from the combined 139 RC holes for 16,566m (Tables 2 and 3) include:

  • 3m @   9.17g/t Au from 27m (BRC321)
  • 10m @   4.43g/t Au from 140m (BRC315)
  • 4m @   4.43g/t Au from 43m (BRC317)
  • 8m @   4.18g/t Au from 40m (BRC329)*
  • 6m @   2.78g/t Au from 23m (BRC361)
  • 4m @ 10.33g/t Au from 47m (KRC593)
  • 14m @   2.15g/t Au from 62m (KRC600)
  • 4m @   9.34g/t Au from 20m (KRC648)*
  • (*4m composited samples)

"These results reinforce the Company's increasing belief that the Kunche and Bepkong deposits are components of a larger system of interconnected mineralised structures, and therefore the strong likelihood of an increase to the current Indicated Mineral Resource of 646,000 ounces of gold and Inferred Mineral Resource of 518,900 ounces of gold at the Wa Gold Project." said Azumah Managing Director, Stephen Stone.

"A new phase of RC drilling will commence shortly to evaluate continuity of the mineralisation and to follow-up other intersections off the main Aduane trend."

Target pipeline being extended

Several aircore drilling programmes are recently completed or underway to investigate broader gold anomalism at key prospects along the Kunche mineralised corridor including at Yagha North and South, Atikpi, Duri, and Basabli (Figure 2).  Results are expected to help define new targets, which may need refinement by ground geophysics, prior to RC drill testing.

Kunche West IP anomaly tested

Results from a drill test (four diamond holes for 365m; and 15 RC holes for 1,523m) of the Kunche West gradient array IP anomaly proved disappointing, with the IP resistivity response interpreted as being due to felsic dykes, similar to those that intrude along the structure that hosts the Kunche deposit.  Despite this result, gradient array IP is still considered to be the best available data set to map detailed structure.

New sample preparation laboratory to be installed shortly

Azumah's new sample preparation laboratory is due to be installed on site at its Kalsegra exploration head quarters in March.  This unit is expected to greatly reduce assay turnaround times and to speed up exploration and decision making.

For further information on Azumah Resources Limited and its projects please visit the Canadian SEDAR website and Azumah's own website at www.azumahresources.com.au

Figure 1: Bepkong South and Aduane Prospects - Latest Drilling Results

Figure 2: Wa Gold Project - Key Deposits and Prospects

Table 1: Wa Gold Project - Statement of Mineral Resource Estimates - JORC Code & NI 43-101 Compliant

Prospect Indicated Inferred
Tonnes Grade
g/t
Gold
Contained
Ounces
Gold
Tonnes Grade
g/t
Gold
Contained
Ounces
Gold
Kunche 4,900,000 2.0 318,000 3,600,000 1.7 198,000
Bepkong 1,040,000 2.5 82,000 1,930,000 2.1 130,000
Julie 3,438,000 2.2 246,000 1,489,000 2.2 104,000
Collette       909,000 2.1 60,600
Atikpi       350,000 1.4 15,500
Yagha       270,000 1.2 10,800
Total 9,378,000 2.1 646,000 8,548,000 1.9 518,900

The Mineral Resources outlined in this report are JORC Compliant and compliant with the Mineral Resource and Reserve categories of the Canadian Institute of Mining (CIM) Definition Standard.

Hole ID East North Depth (m) Dip Azimuth From
(m)
To
(m)
Width
(m)
Au (g/t)
Bepkong South: 4m composites
BRC312 527231 1151227 96 -50 90 36 40 4 2.25
BRC325 526986 1151477 140 -50 90 104 108 4 1.59
BRC327 527014 1151500 173 -50 90 48 52 4 1.77
BRC329 527038 1151525 100 -50 90 40 48 8 4.18
BRC334 527123 1151600 100 -50 90 76 80 4 1.54
Bepkong South: 1m samples
BRC307 527178 1151001 108 -50 90 96 97 1 1.43
            100 102 2 2.09
BRC311 527115 1151201 163 -50 90 113 115 2 1.91
            120 121 1 1.92
            146 147 1 3.2
BRC314 527150 1151227 114 -50 90 64 66 2 1.71
            70 71 1 1.02
BRC315 527123 1151125 160 -50 90 140 150 10 4.43
BRC317 527152 1151255 86 -50 90 10 11 1 3.06
            43 47 4 4.43
            69 70 1 1.48
            81 82 1 1.81
BRC321 527069 1151476 162 -50 90 27 30 3 9.17
            136 137 1 1.32
            140 141 1 1.64
BRC326 527064 1151500 150 -50 90 69 70 1 1.01
BRC361 527323 1150905 120 -50 250 23 29 6 2.78
            78 80 2 1.03
BRCD370 527498 1151007 191.7 -50 250 179 180 1 1.18
BRC402 527281 1151781 120 -50 50 62 64 2 4.15




Table 2: Bepkong South - Latest RC Drilling Intercepts

Hole ID East North Depth (m) Dip Azimuth From (m) To    (m) Width (m) Au (g/t)
Aduane: 4m composites
KRC602 527515 1150576 70 -50 90 8 12 4 1.03
            52 56 4 1.68
KRC642 527565 1150592 120 -50 250 56 60 4 1.28
KRC647 527791 1150695 120 -50 250 76 80 4 1.37
KRC648 527162 1154953 120 -50 250 20 24 4 9.34
Aduane: 1m samples
KRC591 527402 1150225 70 -50 270 14 17 3 2.06
            40 41 1 1.55
KRC592 527426 1150225 120 -50 270 47 49 2 2.17
            53 60 7 1.38
            76 77 1 2.22
KRC593 527297 1150225 70 -50 90 23 24 1 1.64
            47 51 4 10.33
KRC600 527461 1150527 108 -50 90 62 76 14 2.15
KRC601 527438 1150530 120 -50 90 106 109 3 1.48
KRC602 527515 1150576 70 -50 90 11 13 2 1.7
            23 26 3 1.26
KRC603 527490 1150577 90 -50 90 7 12 5 1.53
            16 17 1 1.58
            23 24 1 1.42
            27 28 1 1.07
            35 36 1 1.52
            59 60 1 1.25
KRC604 527467 1150576 100 -50 90 41 42 1 1.15
            48 49 1 1.92
            61 65 4 0.99
            69 71 2 1.66
            75 76 1 1.56
KRC606 527500 1150625 118 -50 90 4 10 6 1.61
KRC607 527482 1150624 156 -50 90 7 9 2 1.18
            36 38 2 1.45
KRCD608 527424 1150500 184 -50 90 122.2 123.2 1 1.05
            127 129 2 1.35
            133 134 1 1.04




Table 3: Aduane - Latest RC Drilling Intercepts


Hole ID

East

North

Depth (m)

Dip

Azimuth

From (m)

To  (m)

Width (m)

Au (g/t)
Aduane: 4m composites
KRC602 527515 1150576 70 -50 90 8 12 4 1.03
       
  52 56 4 1.68
KRC642 527565 1150592 120 -50 250 56 60 4 1.28
KRC647 527791 1150695 120 -50 250 76 80 4 1.37
KRC648 527162 1154953 120 -50 250 20 24 4 9.34
Aduane: 1m samples
KRC591 527402 1150225 70 -50 270 14 17 3 2.06
            40 41 1 1.55
KRC592 527426 1150225 120 -50 270 47 49 2 2.17
            53 60 7 1.38
         
76 77 1 2.22
KRC593 527297 1150225 70 -50 90 23 24 1 1.64
            47 51 4 10.33
KRC600 527461 1150527 108 -50 90 62 76 14 2.15
KRC601 527438 1150530 120 -50 90 106 109 3 1.48
KRC602 527515 1150576 70 -50 90 11 13 2 1.7
            23 26 3 1.26
KRC603 527490 1150577 90 -50 90 7 12 5 1.53
            16 17 1 1.58
            23 24 1 1.42
            27 28 1 1.07
            35 36 1 1.52
            59 60 1 1.25
KRC604 527467 1150576 100 -50 90 41 42 1 1.15
            48 49 1 1.92
       
  61 65 4 0.99
            69 71 2 1.66
            75 76 1 1.56
KRC606 527500 1150625 118 -50 90 4 10 6 1.61
KRC607 527482 1150624 156 -50 90 7 9 2 1.18
            36 38 2
1.45
KRCD608 527424 1150500 184 -50 90 122.2 123.2 1 1.05
            127 129 2 1.35
            133 134 1 1.04


































Restriction

This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the ordinary shares in any state in which such offer, solicitation or sale would be unlawful. The ordinary shares have not been registered and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws. Accordingly, the ordinary shares may not be offered or sold in the United States or to U.S. persons (as such terms are defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws or an exemption from the registration requirements is available. 

Competent Person's Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Nick Franey who is a Member of the Australian Institute of Geoscientists.  Mr Franey is a full time employee of the Company. Mr Franey 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 consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.  For a description of Azumah's data verification process, quality assurance and quality control measures, the effective date of the Mineral Resource estimates contained herein, details of the key assumptions, parameters and methods used to estimate the Mineral Resources and Ore Reserves set out in this report and the extent to which the estimate of 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 "NI 43-101 Azumah Resources Limited Wa Gold Project, North West Ghana", dated April 14, 2011.

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 to be achieved and any 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 under 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: "Figure 1: Bepkong South and Aduane Prospects - Latest Drilling Results(CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20120228_C7932_PHOTO_EN_10500.jpg

Image with caption: "Figure 2: Wa Gold Project - Key Deposits and Prospects (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20120228_C7932_PHOTO_EN_10501.jpg

SOURCE Azumah Resources Inc

For further information:

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

Nicole Harrison - Australia
NWR Communications
+61 (0) 451 184 148
nicole.harrison@nwrcommunications.com.au 

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

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Azumah Resources Inc

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