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PERTH, Australia, May 31, 2012 /CNW/ - Azimuth Resources Limited (ASX andTSX: AZH) (the "Company" or "Azimuth") is pleased to announce a maiden JORC code and National Instrument 43-101 compliant gold resource estimate for the Smarts and Hicks deposits at its flagship West Omai gold project in Guyana.
The overall Inferred Mineral Resource estimate at West Omai for both the Smarts and Hicks deposits is 12.4Mt @ 3.1g/t Au for total contained ounces of 1.22M ounces.
The Inferred Mineral Resource estimate for the Smarts deposit is 5.0Mt at 4.6g/t Au for 748,000 ounces contained gold.
This resource estimate represents drilling completed to mid-April 2012. Both deposits remain open at depth, while along strike, structures which host both deposits remain open in both directions albeit with low grade to sub economic mineralisation but with potential to host as yet unknown higher grade pods and shoots.
The resource estimate represents a major milestone for Azimuth and the estimation took into account a total of 94,410m of drilling and trenching across both the Hicks and Smarts deposits.
The high grade of the overall resource and in particular the Smarts deposit combined with the clean metallurgy and near surface position of the deposits represent a solid foundation for the Company's goal of building a large resource inventory of high quality gold deposits for development.
The Company is continuing its aggressive 4 rig drilling program targeting resource extensions including 2 rigs drilling at Smarts and numerous new prospects at West Omai. A further air core rig is currently scout drilling more regional targets in particular focussing on under-cover extensions of the interpreted Smarts structure. With drilling ongoing Azimuth anticipates the resource inventory to grow.
"Richard Monti"
Richard Monti
Executive Director
Runge Limited (ASX:RUL) has completed a National Instrument 43-101 and JORC Code compliant resource estimate for the Hicks and Smarts gold deposits at the West Omai Project in central Guyana, dated 30 May 2012, on behalf of Azimuth Resources.
Both deposits are hosted in Proterozoic greenstone belts associated with major northwest trending, sub-vertical to steeply southwest to northeast dipping shear zones. The shear zones have preferentially developed along lithological contacts within a greenstone succession comprised of interflow sediments, mafic to intermediate volcanics and mafic to intermediate volcaniclastics. Both the Hicks and Smarts deposits are located 100-400 metres to the north of and parallel to the contact of the greenstone succession with the Eldorado Batholith, a regional-scale granitoid intrusive. The extent of artisanal workings suggests that the shear zones are mineralised for a length of at least 12km.
Numerous, moderately well-defined gold-rich lenses, up to 15 metres wide, occur within the shear zones and are characterized by anomalous quartz and quartz-carbonate veining, quartz flooding, shearing, chloritisation, minor seritisation and pyritisation. Visible gold and the majority of gold values typically occur within and along margins of quartz veins, in silicified porphyry and granitic dykes, and in adjacent, sheared and pyritised, mafic and intermediate volcanics. Pyrite is common at up to 3% by volume, with local, trace amounts of chalcopyrite, galena and sphalerite, associated with auriferous quartz veins.
The overall Inferred Mineral Resource estimate at West Omai for both the Smarts and Hicks deposits is 12.4Mt @ 3.1g/t Au for total contained ounces of 1.22M ounces.
| Deposit | Category | Tonnes (millions) |
Grade (g/t Au) |
Metal (million ozs Au) |
||||
| Hicks | Inferred | 7.4 | 2.0 | 0.47 | ||||
| Smarts | Inferred | 5.0 | 4.6 | 0.75 | ||||
| Total | Inferred | 12.4 | 3.1 | 1.22 |
Table 1: Mineral Resources - West Omai Projects, Guyana - minimum 0.5g/t Au cut-off grade. Methodology for the mineral resource estimates will be contained in a NI43-101 report which will be released on SEDAR within 45 days.
Smarts Deposit
The Smarts deposit is a high-grade gold deposit 100% owned by Azimuth Resources. Drilling by Azimuth indicates this deposit may continue at depth and to the north west, and further drilling is currently underway to investigate these possible extensions of mineralisation.
The Mineral Resource estimate is for gold mineralisation along approximately 2,700m of strike and to a maximum depth of approximately 200m below surface. The resource is comprised of 22 wireframed mineralised bodies within the shear zone each representing a discrete lode (see Figure 1). The vast majority (83%) of the resource ounces are included in three of these lodes which encompass a near continuous strike of 1,700 m. A block model was built of the mineralisation and Ordinary Kriging grade interpolation was used for the estimate. Statistical analysis determined that a high-grade cut of 20g/t to 80g/t Au (different for each lode) was appropriate for the mineralisation. RUL considers that geological and mineralisation continuity has been demonstrated with sufficient confidence to allow the Smarts deposit to be classified as an Inferred Mineral Resource.
Drill holes used in the resource estimate included 55 diamond holes and 105 RC holes for a total of 18,857m of drilling of which 1,766m is contained within the resource wireframes. The full database contained records for 708 drill holes totalling 61,618m of drilling. Holes were drilled at 20m to 60m spacings on 25m to 180m spaced north-east south-west orientated drill sections. All drilling has been completed by AZH during 2011 and 2012.
At a 0.5g/t Au cut-off the overall Smarts Inferred Mineral Resource is estimated at 5.0Mt at 4.6g/t Au for 748,000 ounces contained gold. Within this estimate there are a number of areas of mineralisation which grade significantly higher and the largest lode, representing about half the contained ounces, contains 2.1Mt at 5.6g/t Au for 372,000 ounces.
Like much of the inventory at Smarts, it is higher grade from near surface. Of the total Smarts resource inventory 80% of the ounces are located less than 140m from surface.
To see "Figure 1: Long Section View of all Smarts Resource Wireframes," please click the following link:
http://files.newswire.ca/1077/Azimuth_Figure_1.pdf
To see "Figure 2: Azimuth interpreted long section of the Smarts deposit, with mineralised intercepts (dots) categorised and contoured by grade x thickness (gram/tonne x metres) and also showing outlines of Runge's wireframes. Note open down plunge potential of higher grade shoots within an envelope of low grade mineralisation (1-10 gram/tonne x metres) which remains open along strike in both directions," please click the following link:
http://files.newswire.ca/1077/Azimuth_Figure_2.pdf
The Smarts resource remains open at depth. A contoured long section (Figure 2) showing grade times thickness of drill hole intercepts from both within and outside the interpreted resource wireframes suggests that higher grade zones within the Smarts deposit have a north westerly plunge and remain untested below the interpreted wireframes. The Company is presently drilling to test depth potential, some of which is shallower than 200m.
Figure 2 also illustrates that the higher grade zones and shoots within Smarts are imbedded within lower grade mineralisation (1-10 gram x metres) hosted by the structure which hosts the Smarts resource. This low grade mineralisation remains open along strike in both directions and remains to be drill tested. Potential therefore exists for the discovery of further higher grade zones and shoots along strike from the Smarts resource. The Company is currently scout drilling along strike to the northwest of the Smarts deposit where, over the coming months, it intends to scout drill at least 5 kilometres of the strike of the structures which host the Smarts resource.
Hicks Deposit
The Hicks deposit is a near-surface deposit 100% owned by Azimuth Resources, located 2km southeast of the Smarts deposit.
The Mineral Resource estimate is for gold mineralisation along approximately 2,200m of strike and to a maximum depth of approximately 200m below surface. The resource is comprised of 26 wireframed mineralised bodies within the shear zone each representing a discrete lode (see Figure 3 below). Two thirds of the resource ounces are included in two of these lodes.
A block model was built of the mineralisation and Ordinary Kriging grade interpolation was used for the estimate. Statistical analysis determined that a high-grade cut of 10g/t to 30g/t Au (different for each lode) was appropriate for the mineralisation. RUL considers that geological and mineralisation continuity has been demonstrated with sufficient confidence to allow the Hicks deposit to be classified as an Inferred Mineral Resource.
Drill holes used in the resource estimate included 65 diamond holes and 47 RC holes for a total of 1,619m within the resource wireframes. The full database contained records for 310 drill holes and trenches for 32,792m of drilling and trenching. Holes were drilled at 40m to 60m spacings on 25m to 100m spaced north-east south-west orientated drill sections. The resource estimate consists of drilling completed by AZH between 2010 and 2012 as well as drilling completed during the 1990s by Cambior Inc. and Cathedral Gold Corp.
At a 0.5g/t Au cut-off the overall Hicks Inferred Mineral Resource is estimated at 7.4Mt at 2.0g/t Au for 472,000 ounces contained gold.
To see "Figure 3: Long Section View of Hicks Resource Wireframes," please click the following link:
http://files.newswire.ca/1077/Azimuth_Figure_3.pdf
To see "Figure 4: Plan view of Hicks and Smarts resource envelope outlines," please click the following link:
http://files.newswire.ca/1077/Azimuth_Figure_4.pdf
The data used to estimate the Hicks and Smarts resources has been independently verified by Mr Aaron Green, the Competent Person (and Qualified Person) signing off on the Mineral Resource estimates.
Independent verification of data was carried out during site visits undertaken by Mr Green (Operations Manager WA - RUL) in October 2010 and by Mr Rod Ogilvie (Registered Associate of Runge Mining (Canada) Limited.) in December 2011. This process included reviewing on-site drilling, logging and sampling procedures, QAQC procedures, verification of drill hole collar locations (using a hand-held GPS) and down hole survey methods. RUL personnel personally visited the analytical laboratory in Guyana and viewed the sample reduction, assay and data collection and recording practices. In addition, under the supervision of Mr Green, drilling and sampling information provided to Runge was validated against the original data. Any erroneous data was referred back to Azimuth personnel and corrected.
The data verification process was very thorough and drilling, sampling and assaying procedures are acceptable and well developed to industry standards. The data verification process carried out by RUL has confirmed the integrity of the data.
Competent Person's Statement
Information that relates to Mineral Resources at the West Omai Gold Project is based on a resource estimate that has been audited by Mr Aaron Green, who is a full time employee of Runge Limited. Mr Green is a Member of the Australian Institute of Geoscientists (MAIG) 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 as a Qualified Person as defined in NI 43-101. Mr Green has more than 5 years' experience in the field of Exploration Results and of resource estimation in general. Mr Green consents to the inclusion of the mineral resource estimate information in the form and context in which it appears.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information, including statements regarding mineral resource estimates, the potential mineralisation and geological merits of the Hicks and Smarts Deposits and the plans, objectives or expectations of the Company with respect to the advancement of these projects and completion of programs and studies. Any statements that express or involve predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are forward-looking statements.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to materially differ from those reflected in the forward-looking statements, including, without limitation: inherent uncertainties and risks associated with mineral exploration; uncertainties related to the availability of future financing; uncertainties related to the outcome of studies; uncertainties relating to fluctuations in gold or uranium prices; the risk that Azimuth's title to its properties could be challenged; uncertainties related to general economic and financial conditions; and uncertainties related to fluctuations in Azimuth's share price. This list is not exhaustive of the factors that may affect any of Azimuth's forward-looking statements. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of Azimuth or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company's Annual Information Form under the heading "Description of the Business - Risk Factors" and elsewhere.
Azimuth's forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management as of the date hereof and which Azimuth believes are reasonable in the circumstances, but no assurance can be given that these expectations will prove to be correct. These assumptions include, but are not limited to public statements and stated goals, that there will be no material adverse change affecting the Company or its properties and such other assumptions as set out herein. Azimuth disclaims any intention or obligation to update or revise forward-looking statements if circumstances or management's beliefs, expectations or opinions should change, except as required by law. For the reasons set forth above, undue reliance should not be placed on forward-looking statements.
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Shareholders
Richard Monti
Executive Director
Tel: +61 8 9381 2488
[email protected]
Media
Bill Kemmery
Fortbridge Consulting Pty Ltd
Tel: +61 2 9003 0499
Tel: +61 400 122 449
[email protected]
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