Azumah Resources Limited: Placement to Advance Feasibility Study, Wa Gold Project, Ghana
November 26, 2013 (Source: Marketwired) – Perth-based gold explorer and developer, Azumah Resources Limited (ASX:AZM)(TSX:AZR) (“Azumah” or “the Company”) is pleased to advise that it has completed a $1.0M placement comprising 20M new shares at $0.05 each to Caitlyn Limited, a private investment company associated with Indian industrialist Mr Agnivesh Agarwal.
Mr Agarwal, who will now hold a 5.6% interest in Azumah and be its third largest shareholder, is the Managing Director of United Arab Emirates based gold refiner, Fujairah Gold FZE, a wholly-owned subsidiary of the LSE listed Indian mining conglomerate, Vedanta Resources PLC (“Vedanta”) of which Mr Agarwal’s family is majority shareholder.
He is also Non-Executive Chairman of Hindustan Zinc Ltd and Non-Executive Director of Sterlite Energy Ltd, both of which have Vedanta as their major shareholder.
Azumah will apply funds from the placement towards the completion of a revised Feasibility Study on Azumah’s 100% owned Wa Gold Project, northwest Ghana, West Africa (the “Project”) (Figure 1).
“Azumah welcomes the investment by Mr Agarwal and the opportunity this provides to leverage off his industry expertise and affiliations,” Azumah Managing Director, Mr Stephen Stone said.
About Azumah Resources Limited
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Azumah is focused on the exploration and development of the 100%-owned, 3,100km2 Project, which contains a JORC & NI 43-101 independently estimated Mineral Resource that was increased this year to more than 2 million ounces of gold (refer Table 1 and ASX/TSX release dated 15th January 2013).
A Feasibility Study and Mineral Reserve completed in August 2012 is being revised to reflect the expanded Mineral Resources, including an 84% growth in resources at the Julie deposit and a larger 1.3Mtpa plant producing an average of 100,000oz Au per annum over a mine life of more than six years (refer ASX/TSX release dated 19 June 2013).
The Company also holds a 15.5% strategic stake in neighbouring junior explorer, Castle Minerals Limited, which has ~10,000km2 under licence in the region.
Azumah now retains cash and listed investments of ~$4.4 million.
Figure 1: Wa Gold Project, Ghana – Key Deposits and Prospects is available at the following address: http://media3.marketwire.com/docs/Figure1_WaGoldProject_913892.pdf
Table 1: Wa Gold Project Mineral Resource Estimate (CSA Global Pty Ltd – June 2013)
|Cut-off||Measured||Indicated||Measured and Indicated||Inferred|
|0.5 g/t Au||Tonnes||Grade||Gold||Tonnes||Grade||Gold||Tonnes||Grade||Gold||Tonnes||Grade||Gold|
|(Mt)||(g/t Au)||(oz)||(Mt)||(g/t Au)||(oz)||(Mt)||(g/t Au)||(oz)||(Mt)||(g/t Au)||(oz)|
|Values have been rounded|
Table 2: Summary of Wa Gold Project Mineral Reserves (Coffey Mining Pty Ltd – August 2012)
|Mineral Reserve Summary|
|(As of 21st Aug 2012)||Tonnes
|Values have been rounded|
The Company has not made a production decision and its strategic plan to develop a gold mining operation is subject to the results of an update to the ‘Stage One’ Feasibility Study (refer ASX release dated 28th August 2012) and other factors, some of which are beyond the Company’s control. The Mineral Resources disclosed herein are preliminary in nature and include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them to be categorised as Mineral Reserves. There is no certainty that the Mineral Resources disclosed herein will be realised or converted to Mineral Reserves. Inferred Mineral Resources captured in optimised pits may not all be converted to Measured and Indicated Resources. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. Target, expected and anticipated numbers contained herein are not confirmed, are not JORC or NI 43:101 compliant and are indicative only. Target Mineral Reserves implied herein are based on preliminary Whittle optimisations using adjusted Feasibility Study assumptions.
Competent Persons’ Statement
The scientific and technical information in this report that relates to the in-situ Mineral Resource estimates for the Kunche, Aduane and Julie deposits is based on information compiled by Mr Dmitry Pertel, who a full-time employee (Manager – Resources) of CSA Global Pty Ltd. Mr Pertel 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’ and to qualify as a “Qualified Person” as defined in National Instrument 43 -101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators. Mr Pertel has reviewed and approved the disclosure of the relevant scientific or technical information contained in this announcement that relates to the Kunche, Aduane and Julie Mineral Resource estimates.
The scientific and technical information in this report that relates to the in-situ Mineral Resource estimates for the Bepkong deposit is based on information compiled by Mr David Williams, who is a geological consultant employed by CSA Global Pty Ltd. Mr Williams is a Member of the Australian Institute of Geoscientists and the Australian 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’ and to qualify as a “Qualified Person” as defined in National Instrument 43 -101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators. Mr Williams has reviewed and approved the disclosure of all scientific or technical information contained in this announcement that relates to the Bepkong Mineral Resource estimate.
For further information, including a description of Azumah’s standard data verification processes, quality assurance and quality control measures, and details of the key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves set out in this report and the extent to which the estimate of previously declared Mineral Resources and Mineral Reserves set out herein may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or relevant issues, readers are directed to the technical report titled “Wa Gold Project, Ghana 43-101 Technical Report”, effective as of 27 August, 2012, available on www.sedar.com.
The reported Mineral Reserves have been compiled by Mr Harry Warries. Mr Warries is a Fellow of the Australasian Institute of Mining and Metallurgy and an employee of Coffey Mining Pty Ltd. He has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Qualified Person as defined in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards of November 2010, as well as a Competent Person as defined in the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’ of December 2004 (“JORC Code”) as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia. Mr Warries gives Azumah Resources Limited consent to use this reserve estimate in reports.
This release contains forward-looking information. Such forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend”, and statements that an event or result “may”, “will”, “should”, “could”, or “might” occur or be achieved, and other similar expressions. In providing the forward-looking information in this news release, the Company has made numerous assumptions regarding: (i) the accuracy of exploration results received to date; (ii) anticipated costs and expenses; (iii) that the results of the feasibility study continue to be positive; and (iv) that future exploration results are as anticipated.
Management believes that these assumptions are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking information. Some of these risks, uncertainties and other factors are described under the heading “Risks Factors” in the Company’s annual information form available on www.sedar.com. Forward-looking information is based on estimates and opinions of management at the date the statements are made. Except as required by law, Azumah does not undertake any obligation to update forward-looking information even if circumstances or management’s estimates or opinions should change. Readers should not place reliance on forward-looking information and readers are advised to consider such forward-looking statements in light of the risks set forth in the Company’s continuous disclosure filings as found at the (Canadian) SEDAR website.
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