/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
PERTH, Australia, Feb. 7, 2013 /CNW/ - Azimuth Resources Limited (ASX andTSX: AZH) (the "Company" or "Azimuth") is pleased to announce a 35% increase in its JORC code and National Instrument 43-101 compliant gold resource estimate for the Smarts and Hicks deposits at its flagship West Omai gold project in Guyana. The resource has been independently estimated by global mining consultancy RungePincockMinarco Limited.
The Inferred Mineral Resource estimate at West Omai for the Smarts and Hicks deposits at a cut off of 1.0g/t Au is now:
- 16.7Mt @ 3.06g/t Au for total contained gold ounces of 1.65 million ounces.
(The previously announced Inferred Mineral Resource (31st May, 2012) at a cut off of 0.5g/t Au was 12.4Mt @ 3.1g/t Au for total contained gold ounces of 1.22 million ounces).
The Inferred Mineral Resource estimate for the higher grade Smarts deposit at a cut off of 1.0g/t Au is now:
- 8.1Mt at 4.15g/t Au for total contained gold ounces of 1.08 million ounces.
(The previously announced Inferred Mineral Resource (31st May, 2012) for the Smarts deposit at a cut off of 0.5g/t Au was 5.0Mt @ 4.6g/t Au for total contained gold ounces of 0.75 million ounces).
This resource estimate has resulted from the interpretation of results of drilling completed to November 2012. Both the Smarts and Hicks deposits remain open at depth and along strike.
The Company is continuing its exploration program, targeting resource extensions, the Larken prospect and other prospective targets in its extensive landholding at West Omai.
Chief Executive Officer
RungePincockMinarco Limited (ASX:RUL) has completed an updated National Instrument 43-101 and JORC Code compliant resource estimate for the Smarts and Hicks gold deposits at the West Omai Project in central Guyana on behalf of Azimuth Resources.
Both deposits are hosted in Proterozoic greenstone belts associated with major northwest trending, sub-vertical to steeply southwest to northeast dipping shear zones. The shear zones have preferentially developed along lithological contacts within a greenstone succession comprised of interflow sediments, mafic to intermediate volcanics and mafic to intermediate volcaniclastics. Both the Hicks and Smarts deposits are located 100-400 metres to the north of and parallel to the contact of the greenstone succession with the Eldorado Batholith, a regional-scale granitoid intrusive. The extent of artisanal workings in the area suggests that the shear zones are mineralised for a length of at least 12km.
Numerous, moderately well-defined gold-rich lenses, typically 10-15 metres wide, occur within the shear zones and are characterized by anomalous quartz and quartz-carbonate veining, quartz flooding, shearing, chloritisation, minor seritisation and pyritisation. Visible gold and the majority of gold values typically occur within and along margins of quartz veins, in silicified porphyry and granitic dykes, and in adjacent, sheared and pyritised, mafic and intermediate volcanics. Pyrite is common at up to 3% by volume, with local, trace amounts of chalcopyrite, galena and sphalerite, associated with auriferous quartz veins.
The overall Inferred Mineral Resource estimate at West Omai for both the Smarts and Hicks deposits now stands at 16.7Mt @ 3.06g/t Au for total contained gold of 1.65 million ounces, an increase of 35% in contained gold over the maiden resource announced in May 2012.
| Cut Off
|g/t Au||Mt||g/t Au||Million oz||Mt||g/t Au||Million oz||Mt||g/t Au||Million oz|
Table 1: Mineral Resources - West Omai Projects, Guyana - shown for 0.5g/t Au, 1.0g/t Au and 2.0g/t Au cut-off grades. Methodology for the mineral resource estimates will be contained in a NI43-101 report which will be released on SEDAR within 45 days.
The Smarts deposit is a high-grade near surface gold deposit 100% owned by Azimuth Resources. Drilling by Azimuth indicates this deposit may continue at depth and along strike.
The Mineral Resource estimate is for gold mineralisation along a strike length of approximately 2,800m. The resource is comprised of 15 wireframed mineralised bodies within the shear zone each representing a discrete lode (see Figure 1). Wireframes were built using interpreted mineralised structures rather than a grade boundary as used in the May 2012 resource estimate, leading to a more robust estimate.
A block model was built of the mineralisation and Ordinary Kriging grade interpolation was used for the estimate. Statistical analysis determined that a high-grade cut of 30g/t to 80g/t Au (different for each lode) was appropriate for the mineralisation. RUL considers that geological and mineralisation continuity has been demonstrated with sufficient confidence to allow the Smarts deposit to be classified as an Inferred Mineral Resource.
Drill holes used in the resource estimate included 95 diamond holes and 154 RC holes for a total of 2,334m contained within the resource wireframes. Holes were drilled at 20m to 80m spacings on 25m to 220m spaced north-east south-west orientated drill sections. All drilling has been completed by AZH since 2011.
At a 1.0g/t Au cut-off the overall Smarts Inferred Mineral Resource is estimated at 8.1Mt @ 4.15g/t Au for total contained gold of 1.08 million oz.
Within this estimate there are a number of areas of mineralisation which grade significantly higher than the average grade. The largest lode represents over 80% of the contained ounces. The higher grades in the deposit start from surface, as shown in Figure 2.
The Smarts resource remains open at depth. There are higher grade zones and shoots within the Smarts Deposit, imbedded within lower grade mineralisation (1-10 g/t x metres). This low grade mineralisation remains open along strike in both directions and remains to be drill tested. Potential therefore exists for the discovery of further higher grade zones and shoots along strike from the Smarts resource.
The Hicks deposit is a near-surface deposit 100% owned by Azimuth Resources, located 2km southeast of the Smarts deposit.
The Mineral Resource estimate is for gold mineralisation along a strike length of approximately 2,900m. The resource is comprised of 21 wireframed mineralised bodies within the shear zone each representing a discrete lode (see Figure 3 below). 75% of the resource ounces are included in three of these lodes. Wireframes were built using interpreted mineralised structures rather than a grade boundary as used in the May 2012 resource estimate, leading to a more robust resource estimate.
A block model was built of the mineralisation and Ordinary Kriging grade interpolation was used for the estimate. Statistical analysis determined that a high-grade cut of 20g/t Au was appropriate for the mineralisation contained in lodes representing the majority of the deposit. RUL considers that geological and mineralisation continuity has been demonstrated with sufficient confidence to allow the Hicks deposit to be classified as an Inferred Mineral Resource.
Drill holes used in the resource estimate included 81 diamond holes and 62 RC holes for a total of 2,002m within the resource wireframes. Holes were drilled at 25m to 60m spacings on 15m to 100m spaced north-east south-west orientated drill sections. The resource estimate consists of drilling completed by AZH between 2010 and 2012 as well as drilling completed during the 1990s by Cambior Inc. and Cathedral Gold Corp.
At a 1.0g/t Au cut-off the overall Hicks Inferred Mineral Resource is estimated at 8.7Mt at 2.05g/t Au for total contained gold of 571,000 ounces.
The data used to estimate the Hicks and Smarts resources has been independently verified by Mr Aaron Green, the Competent Person (and Qualified Person) signing off on the Mineral Resource estimates.
Independent verification of data was carried out during site visits undertaken by Mr Green (Manager-Geology Consulting Australia) in October 2010 and November 2012 and by Mr Rod Ogilvie (Registered Associate of Runge Mining (Canada) Limited.) in December 2011. This process included reviewing on-site drilling, logging and sampling procedures, QAQC procedures, verification of drill hole collar locations (using a hand-held GPS) and down hole survey methods. RUL personnel personally visited the analytical laboratory in Guyana and viewed the sample reduction, assay and data collection and recording practices. In addition, under the supervision of Mr Green, drilling and sampling information provided to RUL was validated against the original data.
The data verification process was very thorough and drilling, sampling and assaying procedures are acceptable and well developed to industry standards. The data verification process carried out by RUL has confirmed the integrity of the data.
Competent Person's Statement
Information that relates to Mineral Resources at the West Omai Gold Project is based on a resource estimate that has been audited by Mr Aaron Green, who is a full time employee of RungePincockMinarco Limited. Mr Green is a Member of the Australian Institute of Geoscientists (MAIG) 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 as a Qualified Person as defined in NI 43-101. Mr Green has more than 5 years' experience in the field of Exploration Results and of resource estimation in general. Mr Green consents to the inclusion of the mineral resource estimate information in the form and context in which it appears.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information, including statements regarding mineral resource estimates, the potential mineralisation and geological merits of the Hicks and Smarts Deposits and the plans, objectives or expectations of the Company with respect to the advancement of these projects and completion of programs and studies. 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", "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 public statements and stated goals, 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.
SOURCE: Azimuth Resources
For further information:
Chief Executive Officer
Tel: +61 8 9381 2488
Fortbridge Consulting Pty Ltd
Tel: +61 2 9003 0499
Tel: +61 400 122 449