New zones of mineralisation found close to flagship deposits at Wa Gold Project
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- Esmond Dennis
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1 New zones of mineralisation found close to flagship deposits at Wa Project ASX / Media Release ASX Code AZM Tuesday 6 th July 2010 Aircore drilling program commences at Kjersti prospect RC drilling continues at Collette Azumah Resources (ASX:AZM) is pleased to report that drilling has confirmed two new zones of mineralisation in the vicinity of the Company s flagship Kunche-Bepkong deposits at the Wa Project in Ghana. Investment Highlights: 1.1Moz gold JORC Code reported Mineral Resource at Wa Project, NW Ghana 100% of 3,100km 2 licences hosting over 150km of prospective Birimian greenstone belt. Less than 10% explored Feasibility Study underway for multi-pit 1.0Mtpa mining and gravity / CIL operation Large pipeline of drill-ready targets Aggressive multi-rig exploration programmes focused on resource inventory increase Board and management team of successful explorers, mining and corporate professionals Issued Capital: M ord. shares 12.50M unlisted options Directors & Management: Contact: Chairman: Michael Atkins Managing Director: Stephen Stone Non-Executive Director: Geoff M Jones General Manager - Geology: Steven Woods Project Study Manager: Alan Thompson Company Secretary: Dennis Wilkins Stephen Stone Mb: +61 (0) stone@azumahresources.com.au Suite 1, 2 Richardson St, West Perth, WA 6005 Tel: +61 (0) Fax: +61 (0) At Bepkong, an RC drilling program comprising 21 holes has confirmed a new zone of mineralisation just 100m west of the main 212,000 ounce gold deposit. The mineralisation is north-south trending, steeply east dipping and vein-hosted. (Figure 1 and Figure 2. Table 1 and Table 2). Best intercepts (from 4m composited samples) include: 8m at 4.06g/t gold from 36m (BRC157) 4m at 3.03g/t gold from 28m (BRC154) 12m at 1.67g/t gold from 24m (BRC155) This most recent drilling was designed to follow-up a high-grade intersection obtained by a preceding round of drilling in hole BRC121 (6m at 8.98g/t gold from 58m and 5m at 2.98 g/t gold from 90m) (refer ASX release dated 28 th May 2010 ). Kunche A new zone of highly encouraging gold anomalism in a still relatively untested area midway between the Kunche and nearby Bepkong deposits has also been confirmed by shallow depth, reconnaissance aircore drilling. Strong anomalism, including 32m at 0.56g/t gold from 12m (including 8m at 1.02 g/t gold from 8m) (KBRB639-4m composited samples), was intersected by several drill holes. Azumah Managing Director Stephen Stone said follow-up drilling will commence as soon as possible at the two new areas of mineralisation with a view to growing the existing 1.1 million ounce resource at the Wa Project to underpin Azumah s plans to establish an initial 70,000 ounce a year operation and to expand this to 100,000 ounce a year plus. Mr Stone said Azumah has drill tested only a small proportion of the prospective areas within its 3,100km 2 Wa Project in north west Ghana and the Company continues to maintain a very high level of targeted and reconnaissance style drilling to counter this. While that work has occurred mainly in the vicinity of the Kunche-Bepkong deposits, these results highlight the enormous opportunity for more mineralisation to still be discovered in this district. Kunche West and South Results from reconnaissance style aircore drilling immediately to the west of the 516,000 ounce gold Kunche orebody, to its south and south west around Nanga are either being evaluated or are pending and will be reported on in due course. Page 1 of 6
2 Collette drilling and resource estimation RC drilling is about to recommence at the Collette deposit to infill and pursue extensions to existing mineralisation. The intention is to include this information in the proposed maiden Collette resource estimation along with some pending results from RC drilling completed last month (Figure 3). The additional rounds of RC drilling at Collette will facilitate a better understanding of the distribution of mineralisation in the area and provide a basis for a more robust resource estimation which will accordingly now be delivered several weeks later than originally envisaged. Drilling commences at Kjersti An extensive shallow depth, reconnaissance aircore drilling program has commenced over a 11 kilometre by 3 kilometre area on the Julie prospecting licence and centred on the Kjersti prospect. Work by previous explorers has shown Kjertsi to be prospective for east-west trending vein hosted, shear zone related gold mineralisation analogous to that at the nearby Julie and Collette prospects. The historical work comprised prospect scale mapping, trenching, rock chip sampling of several groups of artisanal workings and outcrops and extensive surface soil sampling campaigns plus a very limited amount of wide-spaced, shallow depth drilling. This work identified several north-west and north-east trending mineralised quartz veins and has highlighted a number of zones of strong gold anomalism exceeding 100ppb gold. Ground IP surveys completed Good benchmark responses over known mineralisation at the Kunche and Bepkong deposits and similarly good responses over several other areas that have received little geological attention have been obtained from a just-completed 12km² ground based geophysical (combined gradient array and dipole-dipole induced polarisation) survey over much of the Kunche-Bepkong district. The survey results will be evaluated in more detail and early follow-up drilling programs planned accordingly. Aeromagnetic survey commencing shortly A 20,000 line kilometre, high-resolution aeromagnetic and radiometric geophysical survey (100m traverse spacing. 40m survey height) will commence in a few days. It will be flown over the majority of Azumah s Vapor prospecting licence which encompasses the Kunche and Bepkong deposits as well as over the Julie, Collette and Josephine prospecting licences. Contact: Stephen Stone Paul Armstrong Managing Director Read Corporate Tel: +61 (0) Tel: +61 (0) stone@azumahresources.com.au paul@readcorporate.com.au Page 2 of 6
3 Figure 1: Azumah s Strategic Licence Position in Ghana s Emerging North West Province Page 3 of 6
4 Figure 2: Kunche / Bepkong District - Recent drilling results Page 4 of 6
5 Figure 3: Julie, Collette and Josephine Licences showing Kjersti target Table 1: West Bepkong RC Drilling May 2010 Depth From To Intersected Grade Hole_ID East North RL Dip Azi (m) (m) (m) (m) g/t Au BRC BRC BRC BRC Notes: All intersections based on 4m composited RC samples. Intersections selected are based on a 0.50g/t gold lower cut-off, no upper-cut applied and maximum 4m internal dilution. Intersected thicknesses are down-hole intervals. Sample analysed by 50gm Fire Assay method, SGS Tarkwa. Drill hole collars are located by GPS with accuracy + 5m. RC drill holes are down hole surveyed on a 30m interval. Page 5 of 6
6 Table 2: Wa Project Statement of Combined Mineral Resource Estimates Prospect Indicated Inferred Total Tonnes Grade g/t Contained Ounces Tonnes Grade g/t Contained Ounces Tonnes Grade g/t Contained Ounces Kunche 4,900, ,000 3,600, ,000 8,500, ,000 Bepkong 1,040, ,000 1,930, ,000 2,970, ,000 Julie 3,438, ,000 1,489, ,000 4,927, ,100 Atikpi 350, , , ,500 Yagha 270, , , ,800 Total 9,378, ,000 7,639, ,300 17,017, ,104, Kunche Mineral Resource estimation quoted for blocks with a grade greater than 1.0g/t gold. Differences may occur due to rounding errors. Refer ASX release September 2006 and details on Azumah website. Estimation completed by Runge Limited (previously Resource Evaluations Ltd) in September Bepkong, Atikpi and Yagha Mineral Resource estimations quoted for blocks with a grade of greater than 0.8 g/t gold. Differences may occur due to rounding errors. Estimation completed by CSA Global Pty Ltd in August Julie Mineral Resource estimate quoted for blocks with a grade greater than 1.0g/t gold. Differences may occur due to rounding errors. Estimation completed by CSA Global Pty Ltd in March Details of the Bepkong Mineral Resource estimation appear in ASX release dated 4 th September Details of the Atikpi and Yagha Mineral Resource estimation appear in ASX release dated 4 th September Competent Persons Statement The information in this report that relates to Exploration Results is based on information compiled by Mr Steven Woods. Mr Woods is the General Manager Geology of Azumah Resources Limited. Mr Woods is a Member of The Australasian 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. Mr Woods consents to the inclusion in the report of the matters based on information in the form and context in which it appears. The information in this report that relates to in-situ Mineral Resource estimates for Bepkong, Yagha and Atikpi is based on information compiled by Mr David Williams, an employee of CSA Global Pty Ltd, geological consultants. Mr Williams is the competent person for the Bepkong, Yagha and Atikpi estimates and takes overall responsibility for these. Mr Williams is a Member of The Australasian 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. Mr Williams consents to the inclusion in the report of the matters based on information in the form and context in which it appears. The information in this report that relates to in-situ Mineral Resource estimate for Julie is based on information compiled by Mr Stephen Hodgson, an employee of CSA Global Pty Ltd, geological consultants. Mr Hodgson is the competent person for the Julie estimate and takes overall responsibility for this. 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. Mr Hodgson consents to the inclusion in the report of the matters based on information in the form and context in which it appears. The information in this presentation that relates to Mineral Resources at the Kunche Project is based on a resource estimate that has been audited by Mr Paul Payne, who is a full time employee of Runge Limited. Mr Payne is a Member of The Australasian 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. Mr Payne consents to the inclusion in the presentation of the matters based on information in the form and context in which it appears. Forward Looking Statement Statements regarding plans with respect to the Company s mineral properties are forward-looking statements. There can be no assurance that the Company s plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that the Company will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company s mineral properties. All notes pertaining to the Kunche Mineral Resource estimation of September 2006, the Bepkong Mineral Resource estimation of September 2008 and the Atikpi and Yagha Mineral Resource estimation of September 2008 can be viewed at Page 6 of 6
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