- Measured and Indicated Mineral Resources increased by 57% to 1,016,000oz
- Inferred Mineral Resources increased by 27% to 659,000oz
- Summary (0.5g/t Au Cut-Off):
- 5.19Mt @ 1.89g/t Au for 315,000oz (Measured)
- 14.54Mt @ 1.50g/t au for 701,000oz (Indicated)
- 14.76Mt @ 1.39g/t Au for 659,000oz (Inferred)
- Classification and Mineral Resource upgrade reflects infill drilling, exploration success and revised cut-off grade
- All three key deposits include shallow, higher-grade mineralisation to support annual production head grades of +/-2.0g/t Au.
- All deposits remain open at depth
- Pit optimisations and production schedules advancing ahead of maiden estimate of Mineral Reserves - expected in Q2 2012
- Drilling for planned mid-year resource update underway at Kunche, Bepkong and new Aduane target
- Several other targets being developed for drilling
- $33 million cash and listed investments
- $20 million earmarked for 2012 exploration
Azumah Resources Limited (ASX: AZM)(TSX: AZR) is pleased to report an expansion in Mineral Resources to 1,016,000 ounces Measured and Indicated and 659,000 ounces Inferred gold plus a substantial upgrade in the classification of all major Mineral Resources at its Wa Gold Project, north west Ghana (Table 1)(Figures 1, 2 and 3).
�Infill drilling has confirmed a solid resource platform paving the way for the completion of the Wa Gold Project Feasibility Study� commented Stephen Stone, Managing Director of Azumah Resources Limited.
�We are confident that this year�s $20 million exploration programme will increase Azumah�s mineral resources both through discovery and by extending existing deposits.�
The infill drilling at the Kunche, Bepkong and Julie deposits was undertaken to improve the classification of shallow mineralisation captured within preliminary open pit outlines. This will facilitate final optimised pit designs and a maiden Mineral Reserve estimate, scheduled for Q2 2012.
The overall increase in the independently estimated Mineral Resources arises from the delineation of new lodes representing new discoveries at all three key deposits, extensions to existing lodes and improved continuity to resources. For instance, Kunche is now confirmed to be continuously and consistently mineralised over 1.4km.
The increase is also partly due to a change in cut-off grade to 0..5g/t Au (previously 1.0g/t Au for Kunche, Julie and Collette and 0.8g/t Au for Bepkong) that better reflects the prevailing gold price and an improved confidence in several key operating parameters, such as the confirmation of high gold recoveries from feasibility level metallurgical test work.
Measured and Indicated Mineral Resources (JORC code and NI 43-101 Compliant) have increased by 57% to 19.74 million tonnes grading 1.60g/t Au for 1,016,000oz gold (previously 9.38 million tonnes grading 2.14g/t Au for 646,000oz Indicated) whilst Inferred Mineral Resources increased by 27% to 14.76 million tonnes grading 1.39g/t Au for 659,000oz (previously 8.56 million tonnes grading 1.93g/t Au for 518,900oz).. A natural consequence of the reduced cut-off grade has been a lowering of the overall resource grade.
Importantly, all three deposits include near-surface, higher-grade mineralisation that preliminary optimisations and mining schedules have demonstrated may produce annual production head grades of 2.0g/t Au or above.
On a direct comparative basis (i.e. using previous cut-off grades), Measured and Indicated Mineral Resources increased by approximately 30%, whilst Inferred Minerals Resources were maintained. This reflects the addition of new mineralisation on deposit margins to replace Inferred material upgraded to the Measured and Indicated categories.
For "Table 1: Summary of WA Gold Project Mineral Resources - March 2012" please download the complete announcement.
The restated Inferred Mineral Resource grade reflects the paucity of drilling information both at depth and on deposit margins. Resource grades may well improve as increased drilling density allows higher grade zones to be better delineated.
It should also be noted that:
- No additional or infill drilling was undertaken at Collette.
- Inferred Mineral Resources previously reported for the early stage Atikpi and Yagha deposits, which totalled 26,300oz gold, have been excluded from the updated Mineral Resource pending further exploration at these locations.
- The Mineral Resource estimate was undertaken by Perth-based independent geological consultants, CSA Global Pty Ltd. Details of deposit geology, the drill hole database, QA/QC procedures and estimation methodology are appended to this announcement.
2012 Resource Expansion Focus
Azumah is well placed to maintain its exploration momentum and project development objectives with cash and listed investments of approximately $33 million.
The Company has committed $20 million to its 2012 exploration programme that will be almost entirely focused on increasing Mineral Resources.
It has 18 geologists and ~80 technical and other support personnel on site at its Kalsegra exploration headquarters and at its two other regional exploration camps. It also has five drill rigs in operation, three of which operate on a 24hr basis.
All key deposits remain open at depth with a further round of drilling at Kunche and Bepkong nearing completion to extend and better understand these resources. Twenty RC holes for 7,000m are designed to intersect mineralisation along the entire north-south strike of both deposits at 200m depth below surface.
The shallow dipping Julie deposit has only been drilled to a depth of 55m with many areas of the 6km east-west mineralised structure not yet fully evaluated.
A follow-up RC and diamond core drilling programme is also underway at the new Aduane target, located between the Kunche and Bepkong deposits, where results from recent drill testing suggest that Aduane will yield a new source of near-surface mineralisation (refer ASX release dated 29th February 2012).
Several other targets are being advanced for drill testing within the 100km north-south trending �Kunche Corridor� and at the Wa East licences.
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
Download the full announcement including figures and tables.