Azumah Announces Excellent Drilling Results Continue

ASX / TSX & Media Release
ASX Code - AZM
TSX Code - AZR

www.azumahresources.com.au

Drilling to Commence at Josephine Prospect

• Julie drilling confirms mineralisation outside of present resource envelope and depth continuity below base of current designed pits.
  Highlights include:    
  
• 12.7m @  2.73g/t Au from 151m (AJUC602)
  
• 11.7m @  2.01g/t Au from 128m (AJUCD624)
  
• 10.0m @  3.18g/t Au from 116m (AJUC718)
  
•   7.0m @  2.01g/t Au from 72m (AJUC726)
  
•   5.1m @  2.14g/t Au from 210m (AJUCD729) 
  
•   7.0m @  3.80g/t Au from 60m (AJUC735)
  
•   7.0m @  5.39g/t Au from 141m (AJUCD737)
  
• 13.0m @  5.11g/t Au from 106m (AJUCD738)
  
•   4.0m @ 10.32g/t Au from 68m (AJDD006)
  
• Collette deposit drilling returns more encouraging intercepts including:    
  
• 14.0m @ 1.53g/t Au from 34m (ACORC214)
  
•   4.0m @ 3.51g/t Au from 49m (ACORCD234)
  
• Follow-up drilling to investigate anomalism and mineralisation at early stage Kjersti prospect returns:    
  
• 20.0m @ 2.21g/t Au from 24m (AKJRC002)
  
•   3.0m @ 2.18g/t Au from 29m (AKJRC005), and
    3.0m @ 4.12g/t Au from 42m 
  
• Drilling to commence shortly at Josephine prospect to evaluate a series of gold anomalies and test for mineralisation in the vicinity of artisanal workings    
  
• Mineral Resource update for all key deposits scheduled for end of Q4 2012    
  
• Updated Feasibility Study and Mineral Reserve scheduled for end of Q1 2013     
  
• AZM holds $16M in cash and listed investments    
  
  "The Wa East area is shaping up well in its own right and we are confident of delivering additional Mineral Resources and Mineral Reserves from here into the overall Wa Gold Project", comments Azumah Managing Director, Stephen Stone.     
  
  "The Company is now highly focused on testing its pipeline of targets and generating new areas of interest within its 100% owned, 3,100km² licence holdings, the majority of which are still at an early stage of evaluation". 

TORONTO, Nov. 14, 2012 /CNW/ - Perth-based gold explorer and developer Azumah Resources Limited (ASX: AZM), (TSX: AZR) is pleased to report more excellent results from drilling at its Wa East licences.  In particular, at the Julie deposit, mineralisation has been extended outside of the current resource envelopes with continuity of mineralisation also confirmed well below the base of current shallow pit designs (Figures 1, 2 and 3).

The new Julie results, in addition to results from drilling at the early stage Collette and Kjersti prospects, confirm the Wa East area's growing importance within the overall Wa Gold Project and enhance the likelihood of additional Mineral Resources and Mineral Reserves being defined from the area (Tables 1, 2 and 3).

An update of Mineral Resources is underway for all key Wa Gold Project deposits that presently stand at a combined 1.02Moz Measured and Indicated and 0.66Moz Inferred.  This will include the results from an additional 58,000m of infill and extensional drilling undertaken at these deposits since the last resource estimate.

The updated Mineral Resource, and a review of various capital cost, operating cost and technical inputs included in the current Feasibility Study for the Wa Gold Project, will provide the basis for an update of Mineral Reserves scheduled for completion by end-Q1 2013.

Having completed all infill drilling necessary for the next upgrade of Mineral Resources and Mineral Reserves, the Company is now highly focused on testing its pipeline of targets and generating new areas of interest within its 100% owned, 3,100km² licence holdings, the majority of which are still at an early stage of evaluation.

Julie

The latest drilling results from the granodiorite-hosted Julie deposit are consistent with previously announced results (refer to ASX/TSX releases 19^th July 2012 and 10^th Sept 2012). They confirm that Azumah is likely to expand the Julie deposit Mineral Resources from the currently declared 386,000oz Measured and Indicated and 181,000oz Inferred.

All of the latest holes have been drilled into two high-grade zones, each over 1km-long, at the eastern end of the 6km-long, shallowly north-dipping mineralised Julie host structure.  The results demonstrate that the mineralised zones maintain robust thicknesses well beneath the base of current designed pits, with the deepest intercept at 'Julie East' of 5.1m @ 2.14g/t Au (AJUCD729) occurring approximately 160m below surface.

Collette

At the meta-sediment hosted Collette prospect, approximately 10km to the northeast of Julie, recent drilling aimed at better understanding the controls on previously defined mineralisation returned best intercepts including 14m @ 1.53g/t Au from 34m (ACORC214) and 4.0m @ 3.51g/t Au from 49m (ACORCD234).  Several other intercepts reported above 2g/t Au.  A number of the RC holes were drilled with diamond tails to provide core for more detailed geological interpretation(Table 4).

Kjersti

Drilling at the early-stage Kjersti prospect, 7km west-northwest of Julie and hosted by the same meta-sedimentary unit as Collette, was undertaken to follow-up an initial drill-test by Azumah into this anomalous but under-explored region.  Several encouraging intercepts were returned including 20m @ 2.21g/t Au from 24m (AKJRC002) and 3.0m @ 2.18g/t Au from 29m (AKJRC005) including 3.0m @ 4.12g/t from 42m (Table 5).

Josephine

Drilling, comprising 94 planned holes for 7,500m of RC and diamond drilling, is about to commence at the Josephine prospect, 25km southwest of Julie.  Limited work by previous explorers at the southeastern end of a 6km northwest trending shear zone, returned several impressive RC intercepts including 37m @ 3.11g/t Au from 4m, 14m @ 2.97g/t Au from surface and 5m @ 5.17g/t Au from 33m (Figure 4 and Photos)

The drilling will evaluate several geochemical anomalies proximal to the shear zone and test for mineralisation in the vicinity of shallow artisanal workings.

Feasibility Study

The Feasibility Study (refer to ASX/TSX release dated 27^th August 2012) for the Wa Gold Project confirmed that the project is an economically viable proposition with no technical or infrastructure related impediments to development. The Project would generate an average $40M of annual free cash flow after tax and royalties from a nominal 1.0Mtpa plant.

Azumah anticipates that it will be in a position to commit to project development in 1H 2013 whereupon it expects to have increased Mineral Reserves and progressed key permitting requirements.  The Company has already submitted its draft Environmental and Social Impact Study (ESIS) to the Ghana EPA as part of that process. A very positive recent event is the commencement by the Ghana Grid Company Limited (GRIDCo) of construction of the 161KV Wa-Han-Tumu transmission line that has been specifically routed to service the Wa Gold Project.

For further information on the Wa Gold Project in general please refer to the Company's website at www.azumahresources.com.au and www.sedar.com.

Table 1: Summary of Wa Gold Project Mineral Resources - 0.5g/t Au cut-off (CSA Global - March 2012)

Cut-off 0.5 g/t Au	Measured			Indicated			Measured and Indicated			Inferred
	Tonnes	Grade	Gold	Tonnes	Grade	Gold	Tonnes	Grade	Gold	Tonnes	Grade	Gold
	(Mt)	(g/t)	(oz)	(Mt)	(g/t)	(oz)	(Mt)	(g/t)	(oz)	(Mt)	(g/t)	(oz)
Kunche	3.17	1.94	198,000	4.95	1.52	242,000	8.13	1.68	440,000	7.35	1.33	315,000
Bepkong	2.02	1.81	117,000	1.67	1.36	73,000	3.69	1.60	190,000	1.98	1.32	84,000
Julie				7.92	1.52	386,000	7.92	1.52	386,000	3.74	1.51	181,000
Collette										1.69	1.45	79,000
Total	5.19	1.89	315,000	14.54	1.50	701,000	19.74	1.60	1,016,000	14.76	1.39	659,000

Table 2: Summary of Wa Gold Project Mineral Reserves (Coffey Mining - August 2012)

Mineral Reserve Summary
(As of 21st Aug 2012)	Proved		Probable		Contained Gold
	Tonnes (Mt)	Grade (g/t Au)	Tonnes (Mt)	Grade (g/t Au)	oz Au^(1)
Bepkong Kunche Julie	1.7 2.3 -	1.9 2.1 -	0.2 1.6 1.0	2.0 1.6 2.4	117,000 238,000 74,000
Total	4.0	2.0	2.8	1.9	430,000

* Values have been rounded

Table 3: Julie Deposit - Latest RC & DD drilling results

Hole ID	East	North	Depth	Dip	Azim	From	To	Width	Au
			(m)			(m)	(m)	(m)	(g/t)
AJDD006	597,551	1,115,816	107	-50	185	68.0	74.0	4.0	10.32
					incl.	71.0	72.0	1.0	57.14
AJDD007	597,036	1,116,053	104	-50	185	62.0	68.0	6.0	2.30
AJDD008	597,826	1,115,819	99	-50	185	58.0	59.0	1.0	3.17
						66.0	67.0	1.0	1.02
						89.0	93.0	4.0	1.57
AJUCD602	597,702	1,115,992	183	-50	185	150.8	163.5	12.7	2.73
AJUCD603	597,806	1,115,945	183	-50	185	131.0	133.5	2.5	3.75
						150.0	151.0	1.0	1.21
AJUCD624	594,801	1,116,143	163	-50	185	128.0	139.7	11.7	2.01
AJUC626	594,703	1,116,063	100	-50	185	68.0	70.0	2.0	2.48
						78.0	84.0	6.0	1.92
AJUC629	594,403	1,116,079	140	-50	185	54.0	57.0	3.0	1.80
AJUCD630	594,500	1,116,188	205	-50	185	153.0	155.0	2.0	2.97
						163.0	164.0	1.0	6.02
AJUC632	594,299	1,116,029	103	-50	185	22.0	28.0	6.0	1.11
AJUC634	594,199	1,116,057	97	-50	185	39.0	40.0	1.0	1.39
						60.0	64.0	4.0	1.52
AJUC635	594,200	1,116,136	151	-50	185	80.0	89.0	9.0	1.77
						119.0	120.0	1.0	1.15
AJUC636	594,110	1,116,120	109	-50	185	75.0	76.0	1.0	1.05
AJUC645	594,601	1,116,044	103	-50	185	71.0	76.0	5.0	1.31
						85.0	86.0	1.0	1.67
AJUC651	595,107	1,116,056	91	-50	180	52.0	55.0	3.0	1.57
AJUC655	595,414	1,115,969	71	-50	180	17.0	18.0	1.0	2.71
						21.0	22.0	1.0	1.13
AJUC656	595,415	1,116,028	101	-50	185	44.0	45.0	1.0	7.78
						63.0	64.0	1.0	45.44
AJUCD657	595,414	1,116,112	163	-55	184	87.0	88.0	1.0	1.97
AJUC661	596,097	1,116,104	103	-50	180	4.0	10.0	6.0	1.05
						20.0	21.0	1.0	1.34
						91.0	92.0	1.0	2.37
AJUCD665	596,597	1,116,105	111	-50	185	12.0	13.0	1.0	1.73
						74.4	76.0	1.6	3.08
						85.2	87.0	1.8	4.91
AJUCD689	596,952	1,116,240	198	-50	185	116.0	117.0	1.0	1.42
						132.6	136.0	3.4	1.85
AJUCD692	597,254	1,116,114	192	-50	185	137.5	139.5	2.0	1.86
AJUC707	594,656	1,116,092	138	-50	185	105.0	106.0	1.0	4.38
AJUCD708	594,653	1,116,173	180	-50	185	134.2	135.3	1.1	1.75
						168.0	169.0	1.0	1.46
AJUC709	594,550	1,116,028	105	-50	185	42.0	43.0	1.0	1.68
						85.0	87.0	2.0	3.94
AJUCD711	594,551	1,116,187	177	-50	185	128.0	129.0	1.0	1.08
AJUC712	594,453	1,116,095	145	-50	185	82.0	83.0	1.0	7.56
						92.0	93.0	1.0	1.19
AJUC716	596,698	1,116,150	154	-50	185	67.0	69.0	2.0	1.15
						91.0	92.0	1.0	1.57
						104.0	105.0	1.0	2.13
						112.0	114.0	2.0	2.24
AJUC718	596,702	1,116,243	207	-50	185	116.0	126.0	10.0	3.18
AJUC720	596,655	1,116,197	182	-50	185	105.0	106.0	1.0	1.45
						112.0	113.0	1.0	3.17
						163.0	165.0	2.0	1.40
AJUC724	596,794	1,116,090	131	-50	185	40.0	41.0	1.0	2.09
						64.0	65.0	1.0	1.35
AJUC725	594,150	1,116,111	132	-50	185	72.0	75.0	3.0	4.33
AJUC726	596,252	1,116,135	160	-50	185	72.0	79.0	7.0	2.01
AJUC727A	594,148	1,116,177	166	-50	185	120.0	123.0	3.0	1.44
AJUCD729	597,699	1,116,069	265	-50	185	209.6	214.7	5.1	2.14
						239.0	240.0	1.0	1.49
AJUC732	595,952	1,116,059	133	-50	185	58.0	61.0	3.0	2.00
						106.0	107.0	1.0	1.93
AJUC733	596,306	1,116,051	115	-50	185	39.0	41.0	2.0	3.83
						67.0	77.0	10.0	1.23
AJUCD734	597,400	1,116,064	249	-50	185	168.0	169.0	1.0	22.44
AJUC735	596,381	1,116,078	135	-50	185	60.0	67.0	7.0	3.80
						74.0	75.0	1.0	1.80
AJUC736	596,424	1,116,000	87	-50	185	32.0	37.0	5.0	2.42
						50.0	52.0	2.0	7.16
AJUCD737	597,149	1,116,224	234	-50	185	141.0	148.0	7.0	5.39
						156.0	158.1	2.1	2.06
						193.0	199.4	6.4	1.67
AJUCD738	596,757	1,116,217	183	-50	185	106.0	119.0	13.0	5.11
						124.2	129.0	4.8	2.80

Table 4: Collette Deposit - Latest RC & DD drilling results

Hole ID	East	North	Depth	Dip	Azimuth	From	To	Width		Au (g/t)
			(m)			(m)	(m)	(m)
ACORC214	606,248	1,116,698	72	-50	185	34.0	48.0	14.0		1.53
					incl.	39.0	48.0	9.0		1.86
						66.0	67.0	1.0		1.74
ACORC215	606,248	1,116,738	126	-50	185	78.0	79.0	1.0		1.50
						87.0	89.0	2.0		1.49
ACORC219	605,999	1,116,178	70	-50	185	21.0	22.0	1.0		1.41
ACORC221	605,999	1,116,261	70	-50	185	69.0	70.0	1.0		1.11
ACORC229	605,249	1,116,014	60	-50	185	2.0	4.0	2.0		5.24
ACORC230	605,249	1,116,049	70	-50	185	39.0	40.0	1.0		38.50
ACORCD230	607,001	1,118,182	246	-50	180	191.0	195.0	4.0		1.03
ACORCD232	606,961	1,118,042	156	-50	180	120.8	122.6	1.8		2.56
ACORC237	606,802	1,118,151	190	-50	185	72.0	73.0	1.0		2.42
ACORCD046	606,698	1,117,919	156	-50	185	109.0	111.0	2.0		1.48
						142.9	146.0	3.1		1.28
ACORCD232	606,961	1,118,042	156	-50	135	117.0	121.9	4.9		1.16
					incl.	120.8	121.9	1.1		3.85
ACORCD233	607,128	1,117,878	162	-50	135	149.0	150.0	1.0		1.04
ACORCD234	606,801	1,118,098	159	-50	180	49.0	53.0	4.0		3.51

Table 5:  Kjersti Prospect - Latest RC & DD drilling results

Hole ID	East	North	Depth	Dip	Azimuth	From	To	Width	Au (g/t)
			(m)			(m)	(m)	(m)
AKJRC002	588,954	1,121,568	90	-50	180	24.0	44.0	20.0	2.21
						88.0	90.0	2.0	1.77
AKJRC003	589,022	1,121,512	75	-50	180	14.0	15.0	1.0	12.60
						48.0	50.0	2.0	1.59
						58.0	68.0	10.0	1.14
AKJRC004	589,020	1,121,554	90	-50	180	49.0	50.0	1.0	2.26
						68.0	70.0	2.0	1.64
AKJRC005	589,078	1,121,485	75	-50	180	8.0	18.0	10.0	1.36
						29.0	32.0	3.0	2.18
						42.0	45.0	3.0	4.12
AKJRC006	589,077	1,121,526	90	-50	180	37.0	38.0	1.0	1.11
						45.0	46.0	1.0	1.00
AKJDD007	589,020	1,121,477	135	-50	185	17.0	20.0	3.0	1.46
						32.0	33.0	1.0	1.78
						50.0	57.4	7.4	1.30
						73.0	74.0	1.0	8.85
AKJCD008	589,015	1,121,604	177	-50	180	114.0	115.0	1.0	12.38
AKJC010	588,897	1,121,497	80	-50	185	24.0	25.0	1.0	1.20
AKJC011	588,903	1,121,601	181	-50	185	127.0	128.0	1.0	3.52
AKJC012	588,703	1,121,499	127	-50	185	70.0	71.0	1.0	1.04
AKJC034	592,243	1,120,730	86	-50	245	0.0	1.0	1.0	2.20
AKJC035	592,286	1,120,751	85	-50	245	71.0	72.0	1.0	1.18
AKJC037	593,188	1,121,393	97	-50	245	87.0	88.0	1.0	4.08
AKJCD039	593,239	1,121,418	177	-50	245	29.0	30.0	1.0	1.25
						95.0	96.0	1.0	1.82
AKJCD041	592,386	1,120,798	144	-50	245	124.0	125.0	1.0	3.17
						130.0	131.0	1.0	1.55

Competent Person's Statement

The scientific and technical information in this report that relates to Exploration Results is based on information compiled by Mr Nick Franey, who a full-time employee (General Manager Geology) of Azumah Resources Ltd.  Mr Franey 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 Franey is the Qualified Person overseeing Azumah's exploration projects and has reviewed and approved the disclosure of all scientific or technical information contained in this announcement.

For further information on the Wa Gold Project, 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.

Forward-Looking Statement

This report 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. 

 

Image with caption: "Artisanal workings at Josephine prospect (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20121114_C8273_PHOTO_EN_20695.jpg

Image with caption: "Figure 1: Wa Gold Project - Key Deposits and Prospects (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20121114_C8273_PHOTO_EN_20696.jpg

Image with caption: "Figure 2: Wa East Licences (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20121114_C8273_PHOTO_EN_20697.jpg

Image with caption: "Figure 3: Julie Deposit - Latest RC & diamond drilling results (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20121114_C8273_PHOTO_EN_20698.jpg

Image with caption: "Figure 4: Map of Josephine Area (CNW Group/Azumah Resources Inc)". Image available at: http://photos.newswire.ca/images/download/20121114_C8273_PHOTO_EN_20699.jpg

SOURCE: Azumah Resources Inc

Stephen Stone 
Managing Director
Tel: [phone]
[email protected]

Robert Gundelach - Australia
NWR Communications
[phone]
[email protected]

Joanna Longo - North America
Terre Partners
[phone]
[email protected]