Azumah
Resources Limited (ASX: AZM)
ASX
Release
11 March 2008
Drilling Underway at Bepkong, Butele and Basabli
Following
the success of its diamond and RC drilling programme at the 100%-owned Wa-Lawra
Gold Project in Ghana during the December 2007 Quarter, Azumah Resources
Limited (ASX: AZM) is pleased to advise that follow-up drilling has commenced
to further test the recently announced Bepkong gold discovery and other
priority gold targets.
Bepkong
will be the first area to be tested with RC drilling following-up an
intersection of 16m @ 4.9g/t gold from 50m, including 10m @ 7.1g/t gold from
54m.
This was
a particularly pleasing result, especially given that the intersection was from
the very first hole drilled into a newly delineated soil anomaly that
extends intermittently for 2km from Bepkong back to the Company’s main 516,000 ounce
Kunche gold resource.
The
anomaly lies off the generally accepted trend of mineralisation in the area and
– together with new mineralisation discovered at Kunche East and Kunche
West, demonstrates that the 2,800km2 Wa-Lawra
project area is very fertile and offers excellent potential for a new gold
discovery.
“We
are hopeful that Bepkong will deliver additional ounces into Azumah’s
gold inventory and contribute to our objective of establishing a profitable
stand-alone gold mining operation at Wa-Lawra,” commented Executive
Chairman, Mr Stephen Stone.
After
completing 35 holes at Bepkong the RC rig will move to the new Butele prospect,
35km south of Kunche. A programme of 7 RC drill holes will test a 300m x 150m
gold anomaly where rock chips taken from quartz veins hosted in granite
returned several very anomalous values including 11.5g/t, 8.2g/t and 7.8g/t
gold.
Second
Drill Rig at Basabli
A second
rig will drill 40 RAB holes into the 4km long Basabli anomaly, 40km
north of Kunche, that was generated by power-auger soil sampling which obtained
spot values of up to 1.68g/t gold.
The
truck-mounted power auger rig continues to sample many other areas of interest
within the Wa-Lawra Project area to ensure that a continuous pipeline of new
targets is ready for drilling. The Bepkong drill results have provided Azumah
with a great deal of confidence in the reliability of the auger-derived
anomalies.
Metallurgical
studies on Kunche mineralisation, structural studies to determine project and
local scale controls on gold distribution, back-to-basics field-work by
Azumah’s Ghana-based expatriate and local geoscientists, and the
utilisation of the full spectrum of available exploration technologies are all
contributing to Azumah’s ability to achieve a core goal of establishing a
1-2 million ounce resource base at Wa-Lawra.
Well-Founded
Optimism
With just
under $3.0 million working capital, Azumah has sufficient funds to see the
intensive work programmes it has planned through to completion. The Company is
confident that its systematic and tenacious approach to exploration will
deliver additional gold discoveries.
Like many
juniors, Azumah’s share price has been significantly impacted by recent
share market volatility. The new management team is fully aware of the need to
ensure the Company is fully valued by the market and against its peers, and is
working hard on several fronts to encourage new buyers into the stock and
existing shareholders to continue their much-valued support.
The
Company’s board and management team is very experienced and highly
capable across the full range of essential disciplines. With a tremendous
team of Ghanaian and Perth-based personnel, and collaborations with a number of
highly regarded consultants, Azumah shareholders can be confident that the
Company is in good hands.
The
Company’s website is being updated and enhanced and anyone wishing to
receive regular updates on Azumah’s activities can subscribe to
automatically receive a copy of all ASX announcements as soon as they are
posted.
“With
a steady stream of drill results and news flow expected over the coming weeks
and throughout the remainder of 2008, Azumah is extremely well positioned to
benefit from the growing wave of interest in advanced stage gold explorers and
emerging gold producers that will continue to gather momentum as gold approaches
the US$1,000 per ounce price level,” Mr Stone said.
Contact:
Stephen
Stone
Executive
Chairman
Tel: +61
(0)418 804564
stone@azumahresources.com.au
Competent Persons and Forward Looking Statements:
The information in this report that relates to Exploration Results is
based on information compiled by Mr Bernard Aylward. Mr Aylward is the General
Manager of Azumah Resources Limited. Mr Aylward 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 Aylward
consents to the inclusion in the report of the matters based on information in
the form and context in which it appears. 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.
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