ASX Code -AZM
TSX Code- AZR
TORONTO, March 18, 2013 /CNW/ -
- 4m @ 3.38g/t Au from 28m (JORC016) intersected 150m northwest of main Josephine North workings
- First-pass drill test of 'blind' Yiziri geochemical target returns 4m @ 1.05g/t Au from 60m (BNRD031) - 3km north of the Bepkong deposit
- RC drilling at Basabli returns good intercepts. Possible northern extensions to be investigated:
- 4.0m @ 4.17g/tAu from 62m (ABAC002)
- 3.0m @ 8.39g/t Au from 127m (ABACD010) and
- 1.0m @ 15.68g/t Au from 113m (ABAC030)
- Exploration review confirms 10 prospects, 30 exploration targets and 35 broader areas of interest
- Drilling programmes to start at several high-priority localities, including follow-up at Josephine North
Julie deposit drilling to extend and upgrade classification of Inferred Mineral Resources returns
- 8.0m @ 7.15g/t Au from 1.0m (JUDD021)
- 4.0m @ 9.39g/t Au from 31.0m (JURC746)
- 14.0m @ 2.98g/t Au from 1.0m (JURC747)
- 15.0m @ 3.13g/t Au from surface (JURC752)
- 12.0m @ 4.49g/t Au from surface (JURC757)
- Additional infill drilling planned at Julie to upgrade more inferred resources ahead of update (due end Q2 2013) to the Wa Gold Project's 'Stage One' maiden Mineral Reserve.
- Shallow and thick (>10m) intercepts from drilling at Kunche reaffirms the robustness of that deposit
- Cash and liquid investments of ~$10 million
"The increased emphasis on step-out exploration away from existing deposits is beginning to bear fruit and reinforces our expectation for new discoveries and the definition of additional Mineral Resources" said Azumah Managing Director, Stephen Stone.
Perth-based gold explorer and developer, Azumah Resources Limited (ASX: AZM,TSX: AZR), is pleased to report positive results from step-out exploration drilling at the Josephine North, Basabli and Atikpi prospects, the "blind' Yiziri target and general progress at its Wa Gold Project in northwest Ghana, where it is increasing emphasis on regional exploration (Figures 1)(Tables 1 to 4)
The Company is intent on building resources from the present 1.36Moz Au Measured and Indicated Mineral Resource and 0.85Moz Au Inferred Mineral Resource, and to lift 'Stage One' Mineral Reserves of 0.43Moz with the next reserve update scheduled for end Q2 2013.
At Josephine North (in the Wa East area), RC drilling for strike extensions to known mineralisation returned an intercept of 4m @ 3.38g/t Au from 28m (JORC016), some 150m northwest of known mineralisation. Drilling to the southwest did not confirm any extensions in that direction but a new interpretation suggests holes may have been positioned too far south. Follow-up drilling is planned to commence in coming weeks. The programme will also include drill holes to confirm historical results (from trenching and drilling) in the main Josephine North mineralised zone, with the ultimate aim being to delineate a maiden Mineral Resource. Historical RC drill intercepts include 8m @ 3.45g/t Au from 33m (JOR0003), 37m @ 3.11g/t Au from 4m (JOR0009) and 14m @ 2.97g/t Au from surface (JOR0008). The requirement to prepare safe access to the drill sites through the artisanal workings has caused some delay to this work (Figure 2).
RC drilling in late 2012 at the Basabli and Atikpi prospects was designed to follow up mineralisation previously identified by Azumah. At Basabli, intercepts of 4.0M @ 4.17g/tAu from 62m (ABAC002), 3.0M @ 8.39g/t Au from 127m (ABACD010) and 1.0m @ 15.68g/t Au from 113m (ABAC030) confirm a well mineralised but discontinuous system where drilled to date. An interpretation of the aeromagnetic data suggests that this system might persist to the north or northwest. Results from Atikipi demonstrate that mineralisation persists to considerable depth but that lodes are relatively narrow, at least in the area so far drilled.
At Yiziri, an intercept of 4m @ 1.05g/t Au from 60m (BNRD031) was returned from a programme designed to test a soil geochemical anomaly located 3km north of the Bepkong deposit. This is an encouraging result from an essentially 'blind' target. Target definition geochemical results are also awaited from a broad-coverage auger sampling programme aimed at extending the Yiziri anomaly to the south.
The Sabala geochemical anomaly, 12km southwest of the Kunche deposit, was confirmed by drilling to be transported. Its interesting geological setting, off-trend from the main north-south Kunche-Bepkong structural corridor, means that further work is required to trace its bedrock source.
Azumah's 3,100km2 licence holdings encompass extensive tracts of prospective Birimian terrain. The Company has established a target pipeline comprising 10 key prospects with confirmed bedrock mineralisation, 30 exploration targets that may require drill testing and 35 other "areas of interest". These localities have been ranked and are being systematically explored in order of priority.
In regards to early-stage targets, reconnaissance mapping, along with rock chip and check soil sampling, has recently been undertaken in the northern part of the Wa-Lawra belt around Nandom, Lambussie and Samoa.
Geochemical orientation studies have demonstrated that arsenic is the best pathfinder element for gold mineralisation. Its enhanced mobility in the near-surface environment (relative to gold) means that it may define new anomalies unrecognised by previous explorers. Azumah is currently defining a new arsenic map of the Kunche-Bepkong district (using an on-site Innov-X hand-held XRF analyser on aircore samples). Initial results have already defined a number of interesting targets.
Unreported resource drilling results
Drilling, undertaken in late 2012 at the Kunche, Aduane and Julie deposits contributed to the Wa Gold Project Mineral Resource (refer ASX release dated 15th January 2013). A number of drill hole intercepts incorporated into that update, but not previously reported, are now provided (Tables 5, 6 and 7).
At all three deposits, several intersections exceeded 10m (down-hole thickness), which serves to further reinforce the robustness of these deposits. This is especially the case at Julie, which is emerging as a key deposit in Azumah's Wa Gold Project development plans. Julie mineralisation extends over several kilometres and remains open at depth. Further drilling is planned to expand the resource and to improve the Mineral Resource classifications. This will enable additional Mineral Reserves to be defined and reported in the Company's Mineral Reserve update, planned for release in late Q2 2013:
The next drill programme is expected to commence within the next few weeks. Future drilling will be undertaken by campaign rather than on an almost continuous basis because of the reduced need to undertake intensive high-cost infill drill-outs. As such, the metres drilled (and therefore expenditures) in 2013 will be much less than in previous years.
Wa Gold Project Feasibility Study Update
Work on several fronts continues with the aim of increasing the Wa Gold Project Mineral Reserve. This will benefit from the incorporation of the extended Julie Mineral Resource, together with metallurgical and geotechnical studies on this new material that will ensure that all new Mineral Reserves are JORC / CIM compliant. In addition, plant capital and operating costs are being reviewed ahead of new pit optimisations and designs. The results of the update are expected to be announced by the end of Q2 2013.
Competent Persons Statement
The scientific and technical information in this report that relates to the geology of the deposits and 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 is the Qualified Person overseeing Azumah's exploration projects and has reviewed and approved the disclosure of all scientific or technical information contained in this announcement.
The scientific and technical information in this report that relates to the in-situ Mineral Resource estimates for the Kunche, Aduane and Julie deposits is based on information compiled by Mr Dmitry Pertel, who a full-time employee (Manager - Resources) of CSA Global Pty Ltd. Mr Pertel 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 Pertel has reviewed and approved the disclosure of the relevant scientific or technical information contained in this announcement that relates to the Kunche, Aduane and Julie Mineral Resource estimates.
The scientific and technical information in this report that relates to the in-situ Mineral Resource estimates for 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 has reviewed and approved the disclosure of all scientific or technical information contained in this announcement that relates to the Bepkong Mineral Resource estimate.
For further information, including 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 and Mineral Reserves set out in this report and the extent to which the estimate of previously declared Mineral Resources and Mineral Reserves 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 titled "Wa Gold Project, Ghana 43-101 Technical Report", effective as of 27 August, 2012, available on www.sedar.com.
The reported Mineral Reserves have been compiled by Mr Harry Warries. Mr Warries is a Fellow of the Australasian Institute of Mining and Metallurgy and an employee of Coffey Mining Pty Ltd. He has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Qualified Person as defined in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards of November 2010, as well as a Competent Person as defined in the 'Australasian Code for Reporting of Mineral Resources and Ore Reserves' of December 2004 ("JORC Code") as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia. Mr Warries gives Azumah Resources Limited consent to use this reserve estimate in reports.
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.
SOURCE: Azumah Resources Inc
For further information:
Tel: +61 (0)418 804 564
Robert Gundelach - Australia
+61 (0) 451 896 420
Joanna Longo - North America
+1 416 238 1414