Azimuth Resources Limited - Exploration Update

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PERTH, Australia, Dec. 11, 2012 /CNW/ - Azimuth Resources Limited (ASX and TSX: AZH) (the "Company" or "Azimuth") is pleased to provide an update on exploration activities at its West Omai Project. Following on from our maiden resource statement, Azimuth continues to expand existing deposits at depth and along strike. In parallel, Azimuth continues to test the region with programs at several promising targets away from the Smarts and Hicks deposits.

Resource Extension Drilling at Smarts
Drilling at Smarts continues to extend the resource at depth and along strike. The location of the results appear in Figure 1. Recent results include;

SDD025:
2m @ 10 g/t Au from 287m and
25m @ 5.7 g/t Au from 300m
SDD034:
5m @ 10 g/t Au from 201m
8m @ 11.2 g/t Au from 235m
SRC675:
SRC674:
SDD021:
4m @ 17 g/t Au from 39m
8m @ 6.8 g/t Au from 43m
4m @ 5.5 g/t Au from 128m to EOH
SDD033:
2m @ 9.5 g/t Au from 144m and
3m @ 5.3 g/t Au from 163m
SDD024:
SRC651:
SRC654:
SRC656:
SRC660:
4m @ 4.0 g/t Au from 49m
3m @ 8.3 g/t Au from 37m
14m @ 2.3 g/t Au from 9m
13m @ 2.4 g/t Au from 29m
36m @ 1.5 g/t Au from 64m to EOH

Resource Extension Drilling at Hicks
Drilling at Hicks has likely extended the resource wireframes at depth and along strike. The location of the results appear in Figure 2. Recent results include;

HDD002:
HDD005:
HDD011:
14m @ 2.0 g/t Au from 33m
10m @ 3.2 g/t Au from 258m
7m @ 2.1 g/t Au from 314m
HDD012:

2m @ 4.5 g/t Au from 263m and
3m @ 4.2 g/t Au from 285m and
3m @ 3.5 g/t Au from 323m
HDD016:   

1m @ 27 g/t Au from 76m and
1m @ 78 g/t Au from 250m and
6m @ 5.0 g/t Au from 331m
HRC119:
HRC122:
10m @ 3.8 g/t Au from 75m
4m @ 5.6 g/t Au from 68m

Developing Exploration targets at West & East Omai
An RC rig has been scout drilling at El Paso, Larken, SE Hicks and south of Kaburi. Trenching has been completed west of Powers and SE of Hicks where visible gold was panned from exposed quartz veins.

An RC rig has been scout drilling geophysical targets at East Omai in November and December. The purpose of the program has been to ground truth the geophysics as well as develop the geological targets in the area. Assays for this program are still in the assay laboratory.

Strategy and Management
Exploration activities will close down for the Christmas period on the 20th December and will resume mid January 2013.

The board continue to search for key management positions in the wake of recent management changes/departures.

At an operational level, the exploration team has been bolstered by the recent appointments of a Principal Geologist and Logistics Manager.

Resource Extension Drilling at Smarts
The recent drilling at Smarts has largely been focused on extending and joining the current resource in the Central Smarts area (downdip), Northwest Smarts (along strike, up and down dip of the 3 structures) and at Southeast Smarts (joining mineralisation along the 1.2km strike length).

Central Smarts

Depth extension results at Smarts currently outside of the resource envelope are as below:

SDD025: 
SDD034: 
SDD032: 
SDD033: 
2m @ 10 g/t Au from 287m and 25m @ 5.7 g/t Au from 300m 
5m @ 10 g/t Au from 201m and 8m @ 11.2 g/t Au from 235m
2m @ 4.6 g/t Au from 135m and 8m @ 1.1 g/t Au from 149m
2m @ 9.5 g/t Au from 144m, 3m @ 5.3 g/t Au from 163m and 2m @ 2.6 g/t Au from 169m

The high grade intersection in SDD025 is 140m down dip of SDT601 (5m @ 9.9 g/t Au - reported in September) and targets the area between the Smarts Artisanal Pit and high grade sections to the north. SDD034 is located 50m southeast and 50m up dip of SDD025.

Holes SDD032 and SDD033 are in the southern part of the Smarts Artisanal Pit area and join the southern Smarts High Grade Shoot to the wireframes in the pit.

NW Smarts
Intercepts in the north-western portion of Smarts (sub parallel lodes) that are currently outside of the resource envelopes;

SDD021: 
SDD024: 
SRC668: 
4m @ 5.5 g/t Au from 128m to EOH 
4m @ 4.0 g/t Au from 49m, 2m @ 1.9 g/t Au from 65m and 6m @ 1.4 g/t Au from 88m
2m @ 3.3 g/t Au (from 113m) and 8m @ 1.0 g/t Au (from 143m to EOH)

Drilling in the north-western Smarts area has intersected 3 separate mineralized structures. Parts of two of these are included in the current resource estimate. Drilling has focused on extending the current resources as well as defining the third object so that it can be included in the upcoming resource update. SDD024 and SRC668 results are from the third structure that lies 130m NE of the main lode position. SDD021 is an extension to the southern structure, located 90m SW of the main lode.

Two drillholes tested beneath previous holes approximately 600m further to the northwest and returned the following;

SRC661: 
SRC662: 
1m @ 13 g/t Au from 97m, 1m @ 3.2 g/t Au from 113m and 1m @ 1.9 g/t Au from 157m
3m @ 0.66 g/t Au from 190m to EOH

These holes are evidence that mineralization continues in the northwest corridor between Smarts and Kaburi. Further drilling will be conducted in 2013 to try to identify further economic mineralisation along this structure.

SE Smarts
Intercepts in the south-eastern portion of Smarts that are currently outside of the resource envelopes;

SRC674: 
SRC675: 
SRC654: 
SRC656: 
SRC660: 
SDD028: 
SDD030: 
SRC651: 
SRC652: 
8m @ 6.8 g/t Au from 43m
4m @ 17 g/t Au from 39m
14m @ 2.3 g/t Au from 9m
13m @ 2.4 g/t Au from 29m
6m @ 1.3 g/t Au from 20m and 36m @ 1.5 g/t Au from 64m to EOH
8m @ 1.6 g/t Au from 106m
1m @ 7.6 g/t Au from 118m
3m @ 8.3 g/t Au from 37m and 8m @ 1.3 g/t Au from 46m
2m @ 6.0 g/t Au from 25m

Drilling at south-eastern Smarts has focused on linking and extending the existing resources that were previously small and disjointed due to the broad spaced drill lines. Recent drilling confirms the lode position and will enable the objects to be joined / extended.

It is the view of the Company that these results, along with previously released results outside of the resource envelopes (including 18m @ 6.8 g/t Au, 5m @ 5.9 g/t Au, 5m @ 7.6 g/t Au and 11m @ 4.9 g/t Au) signify intercepts that will likely ultimately add to the resource inventory of the project. Locations of significant interceptions appear in Figure 1.

Figure 1: Locations of recent drill holes at the Smarts deposit.

Resource Extension Drilling at Hicks
Drilling has been conducted at Hicks recently in much the same manner as Smarts, namely to focus on extending the current resources. The previous exploration update announced new intercepts along strike to the NW of Hicks (approximately 250m extension); the more recent drilling has focused on the down dip extensions to the Hicks deposit and the south-eastern portion of the structure (figure 2)

Intercepts at Hicks outside of the resource envelopes;

HDD005: 
HDD011: 
HDD012: 
10m @ 3.2 g/t Au from 258m
7m @ 2.1 g/t Au from 314m
2m @ 4.5 g/t Au from 263m, 3m @ 4.2 g/t Au from 285m and 3m @ 3.5 g/t Au from 323m
HDD016: 
1m @ 27 g/t Au from 76m, 1m @ 78 g/t Au from 250m, 5m @ 1.2 g/t Au from 288m and
6m @ 5.0 g/t Au from 331m
HRC119: 
HRC122: 
10m @ 3.8 g/t Au from 75m
4m @ 5.6 g/t Au from 68m

Confirmatory drilling within the current resource outline;

HDD002: 4m @ 1.1 g/t Au from 21m, 14m @ 2.0 g/t Au from 33m and  3m @ 2.2 g/t Au from 52m.

Assays results for eleven resource extension RC holes are pending.

Figure 2: Locations of recent drill holes at the Hicks deposit.

Developing Exploration targets at West Omai
In addition to the drilling expanding the resources described above, the Company is continuing to develop new targets at West Omai.

An RC rig has been scout drilling prospects El Paso, Larken, Far SE Hicks and south of Kaburi. The drilling has targeted zones of coincident surface geochemical and magnetic lineaments as well as old workings / pits.

Trenching has been completed at El Paso, Far Southeast Hicks and west of the Powers prospect. Several quartz samples from El Paso contain coarse gold. The southeast Hicks trenches have each uncovered what is thought to be the main Hicks structure on 1km spaced lines. The furthest trench southeast of Hicks is 4km from the end of the known deposit. Samples of the structure were panned and reveal fine to coarse grained gold in each of the trenches. Drilling has been completed on three of the scout lines and assays are pending.

Detailed mapping of the entire Hicks to Kaburi trend and parts of the Goldstar - Gem Creek corridor is currently in progress. It has been some time since the area was mapped and with the more recent excavations and artisanal workings there a lot more basement exposed. A better understanding of the geology will enable more effective targeting and interpretation of the area.

Results of the recent scout drilling south of Kaburi and first pass program at El Paso have returned the following;

KRC045:  
EPRC010:  
EPRC011:  
EPRC013:  
3m @ 5.1 g/t Au (from 115m)
1m @ 2.8 g/t Au (from 43m)
3m @ 1.0 g/t Au (from 11m) and 1m @ 2.3 g/t Au (from 63m)
8m @ 1.6 g/t Au (from 47m)

A line of scout drillholes targeted the area approximately 250 to 600m south of the Kaburi artisanal pit. Mapping, auger sampling and trenching had shown this area to be anomalous and warranted drilling. KRC045 intersected 3m @ 5.1 g/t Au at the end of the drill line closest to a northwest trending magnetic lineament. Further work is required in this area.

The first pass scout program at El Paso intersected several zones of anomalous mineralization in the area immediately north of the old El Paso workings. Follow up drilling in the area of the workings and NW trending magnetic lineaments is planned for the Q1 2013.

Drilling at Larken and Far SE Hicks has intersected quartz vein zones, minor sulphides and shearing. The Far SE Hicks drilling is between 2 and 4km SE of Hicks and the Larken holes drill a separate NW trending zone that is located approximately 750m NE of the Hicks structure. No assays have been returned as yet but the mineralisation observed in the drilling is encouraging.

Azimuth is very encouraged by the recent scout drilling and trenching. Several areas identified by this work as well as the recent mapping are encouraging and will be followed up in the coming months. Detailed re-processing of the magnetics on a prospect scale is in progress and will add to the overall picture and understanding of the prospects.

Outlook
The Company continues to compile results that will combine to form a resource upgrade for its West Omai project in the new year.

Additional shallow mineralisation has been identified at Smarts and Hicks and deeper drilling has given an indication of underground potential, although the Company continues to prioritise the exploration of shallower mineralisation.

To this end, the Company's exploration team will recommence drilling in mid January, concentrating on extensional and regional targets at West Omai.

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, analyst coverage, the ability to raise funds 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.

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 forward-looking statements.

 

 

 

Image with caption: "Figure 1: Locations of recent drill holes at the Smarts deposit. (CNW Group/Azimuth Resources)". Image available at: http://photos.newswire.ca/images/download/20121210_C7857_PHOTO_EN_21763.jpg

Image with caption: "Figure 2: Locations of recent drill holes at the Hicks deposit. (CNW Group/Azimuth Resources)". Image available at: http://photos.newswire.ca/images/download/20121210_C7857_PHOTO_EN_21764.jpg

SOURCE: Azimuth Resources

For further information:

Shareholders
Richard Monti
Executive Director
Tel: +61 8 9381 2488
rmonti@azimuthresources.com.au

Media
Bill Kemmery
Fortbridge Consulting Pty Ltd
Tel: +61 2 9003 0499
Tel: +61 400 122 449
bill.kemmery@fortbridge.com

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