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Azumah Resources Ltd: THE INVESTMENT CASE

Azumah Resources Ltd drills up to 28.9g/t gold in West Africa

These mid-program results demonstrate the potential the Wa Gold Project has to host shallow gold mineralisation.
Azumah Resources Ltd drills up to 28.9g/t gold in West Africa
INVESTMENT OVERVIEW: AZM The Big Picture
Azumah Resources' Wa Gold Project is located in Ghana

Azumah Resources Ltd (ASX:AZM) has received mid-program results grading up to 28.9 g/t gold from its multi-target drilling at the Wa Gold Project located in Ghana.

Results have confirmed extensions to existing mineralisation at the Josephine prospect with a best intercept of 10 metres grading 7.43 g/t gold from 97 metres.

First pass drilling at Manwe South, Madam’s Farm and Julie Far East have all successfully confirmed near-surface primary mineralisation.

A total of 74 holes for 4,831 metres out of a planned 5,500 metres have been completed.

Results from 27 holes have been received with the remaining assays expected within weeks.

Stephen Stone, managing director, commented: “This bodes well for the eventual estimation of a maiden Mineral Resource to supplement Azumah’s existing 2.1 million ounce Mineral Resources.”


Background

Azumah is exploring and developing its regional scale Wa Gold Project in the West African country of Ghana.

Licences cover 2,400 square kilometres and encompass over 150 kilometres strike of the prospective Birimian terrain, the rocks that host the majority of West Africa’s major gold mines.
 
Three main deposits have been discovered and extensively drilled at Kunche, Bepkong and Julie.

To date the company has defined a JORC 2012 Mineral Resource of 2.06 million ounces of gold grading 1.5 g/t gold across 7 deposits.

The Kunche, Bepkong and Julie deposits have an Ore Reserve of 624,000 ounces gold.

Azumah completed a feasibility study for an open pit mining operation based on an initial seven-year life producing ~90,000 ounces gold per year.

The company has had two, 15-year mining leases granted over its key deposits.

Azumah anticipates Mineral Resources will continue to grow through the systematic testing of its pipeline of specific targets, prospects and many areas of interest.

Azumah holds a 16.5% interest in its neighbour and junior Ghana explorer, Castle Minerals NL which has circa 10,000 square kilometres of licences adjacent to Azumah.


Mid-program drill results

Mid-program results have been received from Josephine Main, Manwe South, Julie Far East and Madam’s Farm.


Josephine Main

Drilling has extended mineralisation to 400 metres of strike and remains open at depth.

All six holes intersected mineralisation, which includes 10 metres at 7.43 g/t gold from 97 metres including 2 metres at 28.95 g/t gold.

The broader mineralised envelope has been expanded with intercepts of 14 metres at 1.19 g/t gold from 74 metres, 9 metres at 1.08 g/t gold from 47 metres and 9 metres at 1.34 g/t gold from 61 metres.

Drilling is advancing towards a maiden Mineral Resource estimate.


Manwe South

First pass drilling intercepted 2 metres at 22.99 g/t gold from 46 metres, 4 metres at 2.14 g/t gold from 16 metres and 9 metres at 2.01 g/t gold from 22 metres.

Additional holes are planned.


Julie Far East

First pass drilling intercepted 7 metres at 3.00 g/t gold from 44 metre and 8 metres at 1.50 g/t gold from 18 metres.

This likely confirms an eastern offset to the main Julie ore deposit trend and additional holes are planned.


Madam’s Farm

First pass drilling intercepted 2 metres at 3.29 g/t gold from 32 metres and 4 metres at 2.20 g/t gold from 34 metres.

Additional holes have already been drilled with results available in the coming weeks.


Analysis

These mid-program results demonstrate the potential the Wa Gold Project has to host shallow gold mineralisation.

The results from Josephine are encouraging and confirm extensions to the current mineralisation, which increases the likelihood of a maiden Mineral Resource estimate at the prospect.

First pass testing at Manwe South, Julie Far East and Madam’s Farm is a further indicator of the prospectivity of Azumah’s 2,400 square kilometre project area.

Azumah will stay leveraged to exploration news flow over the coming weeks with the majority of drill results still to come.

Extensive metallurgical test work has been undertaken to confirm a high average overall gold recovery of circa 92% for the Kunche, Bepkong and Julie gold deposits.

Azumah has had two, 15-year mining leases granted over its key deposits and is now moving to obtain environmental operating permits.

The project benefits from supportive regional infrastructure including grid power to site, good quality roads, easy access to water and a sealed airstrip.

Company shares are up over 55% year to date, last trading at $0.044.

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