ASX / TSX & Media Release
ASX Code - AZM
TSX Code - AZR
Investment Highlights:
Issued Capital:
333.7M ordinary shares
9.5M unlisted options
3.5M performance rights
Directors & Management:
Chairman:
Michael Atkins
Managing Director:
Stephen Stone
Non-Executive Directors:
Geoff M Jones
Willaim (Bill) LeClair
Company Secretary:
Dennis Wilkins
TORONTO, Oct. 25, 2012 /CNW/ - Perth-based gold explorer and developer Azumah Resources Limited (ASX:AZM, TSX: AZR) is pleased to provide the following summary of activities undertaken during the Quarter ended 30th September 2012 at its Wa Gold Project, northwest Ghana, West Africa (the 'Project').
Azumah is an Australian-based company, focused on the exploration and development of the 100% owned, 3,100km2 Project, which currently contains a JORC & National Instrument 43-101 compliant Measured and Indicated Mineral Resource totalling 1.02Moz Au (19.74Mt at 1.60g/t Au) and an Inferred Mineral Resource of 0.66Moz Au (14.76Mt at 1.39g/t Au) across three key deposits - Kunche, Bepkong and Julie (Figure 1).
A Feasibility Study ('FS') for the Stage One development of the Project was completed in August 2012 (refer ASX/TSX announcement of 27th August 2012). The FS is based on construction of a +1.0 million tonne per annum gravity and carbon-in-leach ('CIL') plant producing 70,000oz-100,000oz Au per annum.
The 'Stage One' Mineral Reserve included within the Mineral Resources was estimated by independent engineers Coffey Mining Limited to be 430,000oz Au based on the open pit mining of Kunche, Bepkong and Julie gold deposits.
Highlights of the Feasibility Study include:
Completing the FS enables the Company to apply for a Mining Lease and progress other key development approvals. The Company expects that receipt of these permits will coincide with a planned upgrade of Mineral Reserves in early 2013 and allow a decision to proceed with development of the Project, subject to financing.
Subsequent to the end of the Quarter, an independent technical report on the Wa Gold Project titled "Wa Gold Project, Ghana, 43-101 Technical Report" with an effective date of 27th August 2012 was filed on Sedar (www.sedar.com) providing a summary of the FS and the Mineral Resources and Mineral Reserves.
Exploration during the Quarter, and for the remainder of 2012, remains focused on the delineation of additional mineralisation where there is a high-probability of it positively impacting Mineral Resources and Mineral Reserves. This includes drilling to upgrade the classification of approximately 40,000oz Au contained within the existing designed pits at Kunche and Julie that are currently classified as Inferred and hence excluded from the Mineral Reserve.
Recent exploration in and around the Company's flagship deposits, as well as further afield, has confirmed that there are excellent opportunities to further grow the gold inventory in the short and medium terms to bolster the Stage One Mineral Reserve and Project development plans.
Other activities completed during the Quarter include the receipt of drilling results from the Julie deposit, which confirmed that high-grade lodes extend beneath the base of designed open pits and initial Mineral Reserves at the Julie deposit (refer ASX/TSX announcement dated 19th July 2012 and 10th September 2012 for a full list of drilling results). Best intercepts reported include:
The results confirm Azumah will be able to extend resource modelling from 100m to approximately 150m vertical depth below surface, possibly allowing for a material increase in the Julie Mineral Resource estimate of 386,000oz Measured and Indicated and 181,000oz Inferred. The impact of these extensions to mineralisation for Mineral Reserves has not been assessed at this stage but will be included as part of the overall Mineral Reserve review in early 2013.
Planned activity in the December 2012 Quarter
During the Quarter ending 31th December 2012, Azumah expects to:
Azumah expects to complete a Mineral Reserve upgrade for the Project at the end of Q1 2013, based on the upgraded Mineral Resources due to be completed by the end of 2012.
Corporate
At the end of the Quarter Azumah retained combined cash and listed investments of $17.0M; comprising $8.7M cash, $5.6M (2.55M shares @ $2.19) in Endeavour Mining Corporation (ASX:EVR, TSX:EDV) and $2.7M (19.32M shares @ $0.14) in Castle Minerals Limited (ASX:CDT).
Full details of the ASX (and TSX) releases, on which the above summary of activity during the September Quarter 2012 is based, (inclusive of associated figures and drilling results) are available from the ASX at www.asx.com.au, on the Sedar website at www.sedar.com, or from Azumah's website at www.azumahresources.com.au.
For further general information on Azumah Resources Limited and its projects please visit the Canadian SEDAR website and Azumah's own website.
Table 1: Mineral Reserve Summary (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 |
(1) Appropriate rounding has occurred
| Table 2: 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) (1) | (Mt) | (g/t) | (oz) (1) | (Mt) | (g/t) | (oz) (1) | (Mt) | (g/t) | (oz) (1) | ||||
| Kunche Bepkong Julie Collette |
3.17 2.02 |
1.94 1.81 |
198,000 117,000 |
4.95 1.67 7.92 |
1.52 1.36 1.52 |
242,000 73,000 386,000 |
8.13 3.69 7.92 |
1.68 1.60 1.52 |
440,000 190,000 386,000 |
7.35 1.98 3.74 1.69 |
1.33 1.32 1.51 1.45 |
315,000 84,000 181,000 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 | |||
(1) Appropriate rounding has occurred
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, 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.
Appendix 5B
| Mining exploration entity quarterly report | |||
| Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10 |
|||
| Name of entity | |||
| Azumah Resources Limited | |||
| ABN | Quarter ended ("current quarter") | ||
| 72 112 320 251 | 30 September 2012 | ||
| Consolidated statement of cash flows | |||
| Cash flows related to operating activities | Current quarter $A'000 |
Year to date (3 months) $A'000 |
|
| 1.1 | Receipts from product sales and related debtors | - | - |
| 1.2 | Payments for (a) exploration & evaluation (b) development (c) production (d) administration |
(4,605) - - (681) |
(4,605) - - (681) |
| 1.3 | Dividends received | - | - |
| 1.4 | Interest and other items of a similar nature received |
106 | 106 |
| 1.5 | Interest and other costs of finance paid | - | - |
| 1.6 | Income taxes paid | - | - |
| 1.7 | Other (provide details if material) | - | - |
| Net Operating Cash Flows | (5,180) | (5,180) | |
| Cash flows related to investing activities | |||
| 1.8 | Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets |
- - (20) |
- - (20) |
| 1.9 | Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets |
- - - |
- - - |
| 1.10 | Loans to other entities | - | - |
| 1.11 | Loans repaid by other entities | - | - |
| 1.12 | Other (provide details if material) | - | - |
| Net investing cash flows | (20) | (20) | |
| 1.13 | Total operating and investing cash flows (carried forward) |
(5,200) | (5,200) |
| 1.13 | Total operating and investing cash flows (brought forward) | (5,200) | (5,200) |
| Cash flows related to financing activities | |||
| 1.14 | Proceeds from issues of shares, options, etc. | - | - |
| 1.15 | Proceeds from sale of forfeited shares | - | - |
| 1.16 | Proceeds from borrowings | - | - |
| 1.17 | Repayment of borrowings | - | - |
| 1.18 | Dividends paid | - | - |
| 1.19 | Other (provide details if material) Share issue transaction costs |
- | - |
| Net financing cash flows | - | - | |
| Net increase (decrease) in cash held | (5,200) | (5,200) | |
| 1.20 | Cash at beginning of quarter/year to date | 13,883 | 13,883 |
| 1.21 | Exchange rate adjustments to item 1.20 | - | - |
| 1.22 | Cash at end of quarter | 8,683 * | 8,683 * |
* Excludes listed investments of $8.3 million
| Payments to directors of the entity and associates of the directors | ||
| Payments to related entities of the entity and associates of the related entities | ||
| Current quarter $A'000 |
||
| 1.23 | Aggregate amount of payments to the parties included in item 1.2 | 183 |
| 1.24 | Aggregate amount of loans to the parties included in item 1.10 | - |
| 1.25 | Explanation necessary for an understanding of the transactions | |
| Item 1.23 includes aggregate amounts paid to directors including salary, directors' fees, consulting fees and superannuation. | ||
| Non-cash financing and investing activities | ||
| 2.1 | Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows | |
| 2.2 | Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest | |
| Financing facilities available | |||
| Add notes as necessary for an understanding of the position. | |||
| Amount available $A'000 |
Amount used $A'000 |
||
| 3.1 | Loan facilities | Nil | Nil |
| 3.2 | Credit standby arrangements | Nil | Nil |
| Estimated cash outflows for next quarter | ||
| $A'000 | ||
| 4.1 | Exploration and evaluation | 3,000 |
| 4.2 | Development | - |
| 4.3 | Production | - |
| 4.4 | Administration | 1,000 |
| Total | 4,000 | |
| Reconciliation of cash | |||
| Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. |
Current quarter $A'000 |
Previous quarter $A'000 |
|
| 5.1 | Cash on hand and at bank | 3,083 | 3,746 |
| 5.2 | Deposits at call | 5,600 | 10,137 |
| 5.3 | Bank overdraft | - | - |
| 5.4 | Other (provide details) | - | - |
| Total: cash at end of quarter (item 1.22) | 8,683 | 13,883 | |
Changes in interests in mining tenements
| Tenement reference | Nature of interest (note (2)) |
Interest at beginning of quarter |
Interest at end of quarter |
||
| 6.1 | Interests in mining tenements relinquished, reduced or lapsed | ||||
| 6.2 | Interests in mining tenements acquired or increased |
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
| Total number | Number quoted | Issue price per security (see note 3) (cents) |
Amount paid up per security (see note 3) (cents) |
||
| 7.1 | Preference + securities (description) |
||||
| 7.2 | Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions |
||||
| 7.3 | +Ordinary securities |
333,714,096 | 333,714,096 | ||
| 7.4 | Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs |
100,000 | 100,000 | ||
| 7.5 | +Convertible debt securities (description) |
||||
| 7.6 | Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted |
||||
| 7.7 | Options (description and conversion factor) |
2,500,000 4,500,000 2,000,000 500,000 |
- - - - |
Exercise price 14 cents 26 cents 60 cents 92.4 cents |
Expiry date 30 April 2013 15 December 2013 30 November 2014 15 December 2013 |
| 7.8 | Issued during quarter |
||||
| 7.9 | Exercised during quarter |
||||
| 7.10 | Expired/cancelled during quarter |
||||
| 7.11 | Performance Rights |
2,900,000 600,000 |
- - |
Expiry date 30 November 2014 30 November 2015 |
|
| 7.12 | Issued during quarter |
||||
| 7.13 | Exercised during quarter |
100,000 | - | 30 November 2014 | |
| 7.14 | Expired/cancelled during quarter |
500,000 | - | 30 November 2014 | |
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: (signed) Date: 26 October 2012
(Company secretary)
Print name: Dennis Wilkins
Notes
PDF available at: http://stream1.newswire.ca/media/2012/10/25/20121025_C2091_DOC_EN_19740.pdf
SOURCE: Azumah Resources Inc
Stephen Stone
Managing Director
Tel: +61 (0)418 804 564
[email protected]
Robert Gundelach - Australia
NWR Communications
+61 (0) 451 896 420
[email protected]
Joanna Longo - North America
Terre Partners
+1 416 238 1414
[email protected]
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