ASX / TSX & Media Release
ASX Code - AZM
TSX Code - AZR
- NI 43-101 and JORC Code reportable 1.02Moz Measured & Indicated and 0.66Moz Inferred Mineral Resource at Wa Gold Project, NW Ghana
- 100% of 3,100km2 licences 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
- Aggressive $20M, 2012 drilling programme focused on resource discovery and increase
- 17% strategic investment in neighbour, Castle Minerals Limited
- Board and management team of successful explorers, mining and corporate professionals
333.6M ordinary shares
9.5M unlisted options
2.0M performance rights
Directors & Management:
Geoff M Jones
TORONTO, March 11, 2012 /CNW/ -
- Measured and Indicated Mineral Resources increased by 57% to 1,016,000oz
- Inferred Mineral Resources increased by 27% to 659,000oz
- Summary (0.5g/t Au Cut-Off):
- 5.19Mt @ 1.89g/t Au for 315,000oz (Measured)
- 14.54Mt @ 1.50g/t au for 701,000oz (Indicated)
- 14.76Mt @ 1.39g/t Au for 659,000oz (Inferred)
- Classification and Mineral Resource upgrade reflects infill drilling, exploration success and revised cut-off grade
- All three key deposits include shallow, higher-grade mineralisation to support annual production head grades of +/-2.0g/t Au.
- All deposits remain open at depth
- Pit optimisations and production schedules advancing ahead of maiden estimate of Mineral Reserves - expected in Q2 2012
- Drilling for planned mid-year resource update underway at Kunche, Bepkong and new Aduane target
- Several other targets being developed for drilling
- $33 million cash and listed investments
- $20 million earmarked for 2012 exploration
Azumah Resources Limited (ASX: AZM)(TSX: AZR) is pleased to report an expansion in Mineral Resources to 1,016,000 ounces Measured and Indicated and 659,000 ounces Inferred gold plus a substantial upgrade in the classification of all major Mineral Resources at its Wa Gold Project, north west Ghana (Table 1)(Figures 1, 2 and 3).
"Infill drilling has confirmed a solid resource platform paving the way for the completion of the Wa Gold Project Feasibility Study" commented Stephen Stone, Managing Director of Azumah Resources Limited.
"We are confident that this year's $20 million exploration programme will increase Azumah's mineral resources both through discovery and by extending existing deposits."
The infill drilling at the Kunche, Bepkong and Julie deposits was undertaken to improve the classification of shallow mineralisation captured within preliminary open pit outlines. This will facilitate final optimised pit designs and a maiden Mineral Reserve estimate, scheduled for Q2 2012.
The overall increase in the independently estimated Mineral Resources arises from the delineation of new lodes representing new discoveries at all three key deposits, extensions to existing lodes and improved continuity to resources. For instance, Kunche is now confirmed to be continuously and consistently mineralised over 1.4km.
The increase is also partly due to a change in cut-off grade to 0.5g/t Au (previously 1.0g/t Au for Kunche, Julie and Collette and 0.8g/t Au for Bepkong) that better reflects the prevailing gold price and an improved confidence in several key operating parameters, such as the confirmation of high gold recoveries from feasibility level metallurgical test work.
Measured and Indicated Mineral Resources (JORC code and NI 43-101 Compliant) have increased by 57% to 19.74 million tonnes grading 1.60g/t Au for 1,016,000oz gold (previously 9.38 million tonnes grading 2.14g/t Au for 646,000oz Indicated) whilst Inferred Mineral Resources increased by 27% to 14.76 million tonnes grading 1.39g/t Au for 659,000oz (previously 8.56 million tonnes grading 1.93g/t Au for 518,900oz). A natural consequence of the reduced cut-off grade has been a lowering of the overall resource grade.
Importantly, all three deposits include near-surface, higher-grade mineralisation that preliminary optimisations and mining schedules have demonstrated may produce annual production head grades of 2.0g/t Au or above.
On a direct comparative basis (i.e. using previous cut-off grades), Measured and Indicated Mineral Resources increased by approximately 30%, whilst Inferred Minerals Resources were maintained. This reflects the addition of new mineralisation on deposit margins to replace Inferred material upgraded to the Measured and Indicated categories.
Table 1: Summary of WA Gold Project Mineral Resources - March 2012
0.5 g/t Au
|Measured||Indicated||Measured and Indicated||Inferred|
The restated Inferred Mineral Resource grade reflects the paucity of drilling information both at depth and on deposit margins. Resource grades may well improve as increased drilling density allows higher grade zones to be better delineated.
It should also be noted that:
- No additional or infill drilling was undertaken at Collette.
- Inferred Mineral Resources previously reported for the early stage Atikpi and Yagha deposits, which totalled 26,300oz gold, have been excluded from the updated Mineral Resource pending further exploration at these locations.
- The Mineral Resource estimate was undertaken by Perth-based independent geological consultants, CSA Global Pty Ltd. Details of deposit geology, the drill hole database, QA/QC procedures and estimation methodology are appended to this announcement.
2012 Resource Expansion Focus
Azumah is well placed to maintain its exploration momentum and project development objectives with cash and listed investments of approximately $33 million.
The Company has committed $20 million to its 2012 exploration programme that will be almost entirely focused on increasing Mineral Resources.
It has 18 geologists and ~80 technical and other support personnel on site at its Kalsegra exploration headquarters and at its two other regional exploration camps. It also has five drill rigs in operation, three of which operate on a 24hr basis.
All key deposits remain open at depth with a further round of drilling at Kunche and Bepkong nearing completion to extend and better understand these resources. Twenty RC holes for 7,000m are designed to intersect mineralisation along the entire north-south strike of both deposits at 200m depth below surface.
The shallow dipping Julie deposit has only been drilled to a depth of 55m with many areas of the 6km east-west mineralised structure not yet fully evaluated.
A follow-up RC and diamond core drilling programme is also underway at the new Aduane target, located between the Kunche and Bepkong deposits, where results from recent drill testing suggest that Aduane will yield a new source of near-surface mineralisation (refer ASX release dated 29th February 2012).
Several other targets are being advanced for drill testing within the 100km north-south trending "Kunche Corridor" and at the Wa East licences.
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
The Kunche and Bepkong deposits are both believed to be parts of a large shear zone-hosted mineralised system that has not yet been fully defined. Gold mineralisation at both occurs in multiple, parallel, sub-vertically dipping lodes, often defined by quartz veins (particularly at Kunche), hosted by a mixed sequence of meta-sedimentary host rocks, comprised mostly of siltstones and shales (which are carbonaceous at Bepkong). Individual lodes may be as much as 20m thick (true width) and a few are remarkably consistent along strike (over more than 1,000m at Kunche). The deepest holes intersect the mineralised zone just beyond 200m from surface (vertical depth), although most of the lodes have not been drilled any deeper than 120m below surface. The southern lodes at Kunche and those at Bepkong have a N-S strike orientation. In contrast, the northern lodes at Kunche are aligned along a NNW orientation (which is postulated to be the controlling structural trend in the district).
The Julie deposit is hosted by a set of shallow (30-40°), north-dipping, quartz lodes, hosted by a granodiorite intrusion. High-grade pods (or shoots) are located adjacent to high angle faults, which offset the lodes along strike. Most intercepts at Julie are less than about 40m below surface, with the deepest being at a depth of only 55m.
Drilling Database and QAQC Procedures
The drill hole databases for the Kunche, Bepkong and Julie resource updates comprise data from 517, 200 and 496 drill holes respectively. Most of the holes were drilled with a reverse circulation (RC) rig, although selected holes were drilled for diamond core to facilitate metallurgical test work, and the measurement of geotechnical parameters and specific gravity. All drill holes were geologically logged and sampled by Azumah geologists, and all samples were prepared and assayed (standard 50g fire assay) by the independent SGS laboratory in Tarkwa.
Drilling at Kunche and Bepkong was carried out on a 25m x 25m square grid pattern, opening up to 100m x 50m away from the main mineralisation. Most holes were drilled to 270°(due west) at -50° to intersect the sub-vertical lodes approximately perpendicular to strike (the true thickness of intercepts is approximately 75% of the sample length). The Kunche MRE is based on 450 RC and 67 diamond holes, totalling 58,078m. The Bepkong MRE is based on 200 RC and 26 diamond holes, totalling 20,154m.
Most drilling at Julie was on a 50m x 25m pattern but with some infill on a 25m by 25m grid. The majority of holes were drilled to 180° (due south) at -60°. The Julie MRE is based on 492 RC and 4 diamond holes, totalling 34,457m.
Standard QAQC procedures were applied to all sample batches (including the insertion of field duplicates, blanks and certified reference standards). No major issues were identified.
Resource Estimation Method
CSA Global, based in Perth, Western Australia was contracted to complete independent resource estimations for all three deposits, having alrey been involved with the previous estimates completed for Bepkong, Julie and Collette (ResEval, of Perth, undertook the initial estimate of Kunche in 2008).
Azumah geologists initiated the exercise by interpreting the "mineralised envelopes" of lodes on cross sections, based on a minimum lode thickness of 3m, at a 0.3g/t Au cut-off (with a maximum internal dilution of 3m), and these sections were the basis on which CSA Global constructed wireframe models of each lode at the three deposits. In addition, each deposit was subdivided into fresh, transition and oxide material, based on the geological drill logs, to ensure appropriate in-situ bulk denities were applied in the calculation of resource tonnes.
The Bepkong resource incorporates the main zone and Bepkong South. Bepkong South was estimated in 2008 and is currently being drilled and re-interpreted.
Densities used to calculate the MRE were:
Assays were composited to 1m intervals. Top-cuts derived from a statistical analysis of data from each lode were applied to all assays used in the resource estimates to reduce the effect of high-grade outliers.
Ordinary Kriging (OK) was used to interpolate grades into the blocks of each resource model. Multiple Indicator Kriging and Inverse Distance estimation methods were also run as a check on the grade modelling and the results in each case were comparable with OK, although in each case the domained lodes were allowed to control grade interpolation, so this was not unexpected.
The classification of each Mineral Resource into Measured, Indicated and Inferred categories as per the JORC Code (2004 edition) is based on various criteria, including geology, drill sample density, coverage and quality of assay and density data, and various geostatistical parameters (e.g. sample support for modelled blocks and kriging efficiencies etc).
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 the in-situ Mineral Resource estimates for Kunche, Bepkong (excluding Bepkong South) and Julie is based on information compiled by Mr Steve Hodgson, who is a geological consultant employed by CSA Global Pty Ltd. Mr Hodgson 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 Hodgson consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to the in-situ Mineral Resource estimate for Bepkong South (a part of the Bepkong deposit) is based on information compiled by Mr David Williams, who is a geological consultant employed by CSA Global Pty Ltd. Mr Williams is a Member of the Australian Institute of Geoscientists and the Australian Institute of Mining and Metallurgy 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 Williams consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to the in-situ Mineral Resource estimate for Collette is based on information compiled by Mr Samuel Becket, who is a geological consultant employed by CSA Global Pty Ltd. Mr Becket 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 Becket consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
The 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 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 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 set out in this report and the extent to which the estimate of previously declared 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. An updated NI43-101 technical report will be available within 45 days of the date of this announcement.
For further information on the Wa Gold Project in general please refer to the Company's website at www.azumahresources.com.au and sedar.com
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: Wa Gold Project - Key Deposits and Prospects (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20120311_C3436_PHOTO_EN_10996.jpg
Image with caption: "Figure 2: Kunche and Bepkong Deposits - Plan and Long Section showing Mineral Resources (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20120311_C3436_PHOTO_EN_10999.jpg
Image with caption: "Figure 3: Julie Deposit - Plan and Long Section showing Mineral Resources (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20120311_C3436_PHOTO_EN_10998.jpg
For further information:
Tel: +61 (0)418 804 564
Nicole Harrison - Australia
+61 (0) 451 184 148
Joanna Longo - North America
+1 416 238 1414