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
Willaim (Bill) LeClair
TORONTO, June 19, 2012 /CNW/ -
- Best intercepts include:
- 12.0m @ 9.19g/t Au from 219m (BRC302)
- 3.0m @ 9.42 g/t Au from 154m (BRCD451)
- 10.4m @ 2.69g/t Au from 286.6m (BRCD451)
- 1.0m @ 23.47 g/t Au from 212.6m (KRDC693)
- 19.4m @ 1.58g/t Au from 277m (KRCD698)
- 8.0m @ 2.90g/t Au from 307.1m (KRCD725)
- Results pending from latest phase of infill drilling along Aduane trend, between Kunche and Bepkong;
- Drill testing of Basabli and Atikpi prospects completed with results expected in Q3 2012;
- Drilling to extend Julie Mineral Resource just completed;
- Drilling to test extensive anomalies at Kjersti in progress;
- Target definition drilling at Duri and Kuo prospects underway;
- Drilling to extend Collette Mineral Resource to commence in July.
- Mineral Resources to be updated Q3 2012 following receipt of final results from Kunche, Bepkong, Aduane and Julie drilling; and
- Cash and listed investments of $27 million
"This year's focus on increasing Mineral Resources is clearly bearing fruit and these latest drilling results confirm that the Kunche - Bepkong deposits are robust and that there is every opportunity to discover more gold in the immediate area and throughout the Wa Gold Project," Azumah Managing Director Stephen Stone said.
"With Azumah's own on-site sample preparation laboratory fully operational, assaying delays are now behind the Company and shareholders can look forward to a steady news flow of drilling results in coming months. A maiden Mineral Reserve statement is due early in Q3 2012 and the Feasibility Study for the first stage of the Wa Gold Project will be completed in the weeks to follow.
"In addition to its aggressive exploration programmes, Azumah is moving to secure mining and environmental permits and other key commercial approvals that will enable this first stage of a long-term mining operation in the emerging North West Ghana gold province to proceed."
West African gold explorer and developer Azumah Resources Limited (ASX: AZM) (TSX: AZR) is pleased to report that recent drilling at its Wa Gold Project in northwest Ghana has confirmed that mineralisation at the flagship Kunche and Bepkong deposits extends to over 200m below surface, with grades that are consistent with the recently updated Mineral Resources (Refer ASX release dated 12th March 2012) (Figures 1 and 2. Tables 1 and 2).
All sixteen of the twenty holes for which assays are available intersected mineralised lodes within or below the Inferred Mineral Resource and will enable better definition of this Inferred mineralisation.
Mineral Resources will be updated in Q3 2012 following the receipt of all results from the recent drilling at Kunche - Bepkong, an additional phase of infill drilling of the anomalous "Aduane trend" and from drilling just completed at the Julie deposit.
This most recent drilling is consistent with Azumah's 2012 exploration focus on increasing gold Mineral Resources at and around existing deposits that now total 1.02Moz Measured and Indicated and 0.66Moz Inferred.
Given that only about 10-20% of Azumah's extensive and highly prospective 3,100km² licence holdings have been explored effectively, the Company is also optimistic that it will make step-out discoveries to further extend the life of and enhance returns from its proposed ~80,000 - 100,000 ounce per year gold operation.
At the 1.4km long Kunche deposit (440,000oz Measured and Indicated. 315,000oz Inferred), two higher-grade mineralised zones persist to depth at its extreme north and south, while at the 500m long Bepkong deposit (190,000oz Measured and Indicated. 84,000oz Inferred) the best intercepts, including an excellent intercept of 12m @ 9.19g/t Au, are from the central part of the deposit.
The best intercepts to date from this recent drilling include:
- 4.0m @ 2.70g/t Au from 200m (KRCD692A) and 2.0m @ 4.88g/t Au from 293m
- 1.0m @ 23.47g/t Au from 212.6m (KRCD693) and 11.5m @ 1.26g/t Au from 243.5m
- 5.1m @ 2.18g/t Au from 233.9m (KRCD694)
- 19.4m @ 1.58g/t Au from 277m (KRCD698)
- 8.6m @ 1.44g/t Au from 187.6m (KRCD699)
- 6.6m @ 1.43g/t Au from 184.4m (KRCD700)
- 5.0m @ 2.12g/t Au from 251m (KRCD724)
- 8.0m @ 2.90g/t Au from 307.1m (KRCD725)
- 12.0m @ 9.19g/t Au from 219m (BRC302) and 5.2m @ 3.29g/t Au from 262m and
- 5.0m @ 3.39g/t Au from 272m
- 3.0m @ 9.42g/t Au from 154m (BRCD451) and 10.4m @ 2.69g/t Au from 286.6m and
- 3.2m @ 5.01g/t Au from 300.6m
As can be seen from the results, a number of drill holes intersected multiple zones of mineralisation which is consistent with Azumah's geological models for the deposits.
A key motivation for the recent drilling was to identify and determine the extent of higher-grade "shoots" within the known deposits and to verify if there is a plunge direction to these zones. This information will assist with the planning of future exploration drilling throughout the Wa-Lawra Belt.
Fourteen RC and diamond holes for 4,321m and six RC and diamond holes for 1,890m were drilled at Kunche and Bepkong respectively. The holes were spaced at approximately 100m intervals along the north-south strike of each deposit and were designed to intersect the projected mineralised zone below the current Measured and Indicated resource at approximately 200m below surface. All holes were drilled at -50° towards the east, except for one at the southern end of Bepkong (BRCD453) which was drilled to the west - where lodes dip steeply to the east.
Assay results reported in this release are from all but one of the Kunche holes and from three of the six holes at Bepkong - the remaining results are expected within the next two weeks.
Aduane infill drilling programme
Previous drilling has identified the presence of high-grade gold mineralisation along the 1.5km north-northwest orientated Aduane anomalous trend that lies immediately between the Kunche and Bepkong deposits (refer ASX release dated 28th February 2012). The best intercepts received to date 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)
An infill drilling programme at Aduane (72 RC holes for 8,736m) has just been completed and was designed to track variations of grade continuity between the impressive but widely-spaced intercepts summarised above.
Drilling at Julie designed to extend Mineral Resources
There is an excellent opportunity to increase Mineral Resources from the current 386,000oz Measured and Indicated and 181,000oz Inferred at the Julie deposit, Wa East.
Drilling along the shallow north-dipping, 6km east-west trending mineralised Julie structure has delineated several small to modest Mineral Resources between surface and 55m depth.
A drilling programme has just been completed at Julie to confirm extensions to existing Mineral Resources to approximately 100m depth, to extend these east and west and test those zones along the whole 6km strike that have received little or no drilling.
Since March, 86 RC holes for 5,818m and 4 diamond core holes for 411m have been completed at Julie.
Drill testing at Basabli and Atikpi recently completed
Over the past two years, Azumah has directed most of its exploration effort to improving the definition of the known deposits at Kunche, Bepkong and Julie.
With a renewed focus on the discovery of new deposits throughout the Wa Gold Project, drilling programmes have recently been completed at the Basabli (38 holes for 6,273m) and Atikpi (25 holes for 4,833m) prospects which are located within the "Kunche Mineralised Corridor" approximately 40km and 14km north of Bepkong respectively.
Assay results from this work are expected in early Q3 2012 but several intercepts at Basabli are observed to include encouraging traces of arsenopyrite, a reliable indicator of high gold grades.
Other drilling activity
In addition to the extensive drilling programmes summarised above, Azumah has also commenced:
- initial RC drill testing of several anomalies delineated by auger and aircore drilling at the Kjersti prospect, 6km north of Julie at Wa East;
- aircore drilling based target definition in the Duri area, 25km north of Bepkong and within the "Kunche Mineralised Corridor"
- power auger drilling based target definition at the Kuo prospect, 7km south-southwest of Kunche; and
- planning for follow-up drill testing of the Collette deposit (79,000oz Inferred), approximately 10km east-northeast of Julie.
Sample preparation laboratory performing to expectations
The majority of all surface and drilling samples are now prepared for assaying at Azumah's recently commissioned sample preparation facility at its Kalsegra exploration base. The sample pulps are then airfreighted to Perth for analysis. Assay turn-around times are much improved, averaging 25 days, and the laboratory is performing to expectations and close to planned capacity.
Maiden Mineral Reserves and Feasibility Study completion
Azumah is close to finalising mining schedules based on the optimisation of its recently updated Mineral Resources and other key inputs, including operating and capital costs, obtained from its nearly completed Wa Gold Project Feasibility Study.
It is expected that this work will enable a maiden Mineral Reserve for the Kunche, Bepkong and Julie deposits to be completed in early Q3, 2012.
Upon completion of the Mineral Reserves and subject to the satisfactory completion of several other key inputs, it is expected that the Feasibility Study will be available a month or so afterwards.
Table 1: Kunche deposit - Latest RC and diamond drilling results
|Hole ID|| Easting
|Dip (°)||Azimuth|| From
Table 2: Bepkong deposit - Recent RC and diamond drilling results
|Hole ID||East||North|| Depth
Table 3: Summary of WA Gold Project Mineral Resources - March 2012
|Measured||Indicated||Measured and Indicated||Inferred|
Competent Person's Statement
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 3rd May, 2012.
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 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: "Figure 1: Wa Gold Project - Key deposits and prospects (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20120619_C2174_PHOTO_EN_15263.jpg
Image with caption: "Figure 2: Long-section through Kunche - Bepkong deposits showing Mineral Resources and recent drilling results (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20120619_C2174_PHOTO_EN_15264.jpg
For further information:
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
Tel: +61 (0)418 804 564
Nicole Harrison - Australia
+61 (0) 451 184 148
Joanna Longo - North America
+1 416 238 1414