Wa Gold Project, Ghana
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The Wa Gold Project is located in northwest Ghana, West Africa, and covers a total land holding of 3,157 km2, including over 100km of strike of prospective Birimian greenstone belt - a geological setting known to host world class gold deposits throughout Ghana and West Africa.
The Wa Gold Project contains a JORC & National Instrument 43-101 compliant Indicated Mineral Resource totaling 9.4Mt at a grade of 2.1g/t Au for 646,000 oz and Inferred Mineral Resource of 8.5Mt at a grade of 1.9g/t Au for 518,900 oz -across three key deposits, Kunche, Bepkong and Julie.
Azumah's aim is to upgrade this initial resource base to underpin plans to establish an initial 70,000 – 100,000 ounce a year operation and to expand this to consistently produce over 100,000 ounces a year.
Outstanding results are being obtained from Infill RC and diamond core drilling within the current preliminary open pit shells at the Kunche, Bepkong and Julie deposits. This infill drilling is aimed at better defining mineralisation and upgrading existing Inferred and Indicated resources to Measured and Indicated status for incorporation in the Company's base case Feasibility Study which is due for completion in Q2 2012.
Wa Gold Project Highlights
- Land holding of 3,157 km2, including over 100km strike of prospective Birimian greenstone belt - a geological setting known to host world class gold deposits throughout Ghana and West Africa.
- Less than 10 percent has been even basically explored.
- Gold resources at the Kunche deposit comprise an Indicated Mineral Resource of 4.9Mt at 2.0g/t Au for 318,000 oz and an Inferred Mineral Resource of 3.6Mt at 1.7g/t Au for 198,000 oz with the mineralisation remaining open in all directions.
- Initial metallurgical results indicate recoveries of over 90% on typical resource-grade Kunche mineralisation using conventional gold processing technology.
- Between 25% and 40% of the gold is likely to be recoverable using a preliminary gravity separation phase, which should impact favourably on bottom line operating costs.
- Gold resources at the Julie deposit in the Wa-east area comprise an Indicated Mineral Resources of 3.4Mt at 2.2g/t Au for 246,000 oz and an Inferred Mineral Resource of 1.5Mt at a 2.2g/t Au for 104,000 oz.
- Gold resource at the Bepkong deposit comprise an Indicated Mineral Resources of 1.0Mt at 2.5g/t Au for 82,000 oz and an Inferred Mineral Resource of 1.9Mt at 2.1g/t Au for 130,000 oz, with mineralisation remaining open to the north and at depth.
- Maiden gold Inferred Mineral Resource at the Colette deposit of 909,000 tonnes at 2.1g/t Au for 60,600 ounces, with mineralisation remaining open-ended.
- High-grade near-surface and deeper gold intercepts from the 2km zone separating the Kunche and Bepkong deposits, including 1m at 143.0g/t Au from 106m and more recently at Aduane and Bepkong South include 14m at 2.31g/t Au from 13m, 16m at 2.34g/t Au from 23m and 6m at 15.60g/t Au from 53m.
- Several advanced-stage, drill confirmed targets with strong potential for near-term, low-cost, near-surface resource delineation.
- Feasibility study on track for completion in early 2012.
- Considerable exploration upside, with numerous defined targets and untested geochemical gold anomalies.
- High intensity exploration programme now focused on resource discovery and the expansion of existing deposits.
- 2012 drilling focused on discovery and resource expansion .
Please see our December 2011 Quarterly Activities Report for more information.
Resource Statement
As at September 2010
Wa Gold Project – Updated Statement of Combined Mineral Resource Estimates
Figures
Competent Person's Statement
The information in the report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Nick Franey who is a Member of the Australian Institute of Geologists. Mr Franey is a full time employee of the Company. Mr Franey 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 consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. For a description of Azumah's data verification process, quality assurance and quality control measures, the effective date of the mineral resource estimates contained herein, details of the key assumptions, parameters and methods used to estimate the mineral resources and reserves set out in the report and the extent to which the estimate of mineral resources 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 entitled "NI 43-101 Azumah Resources Limited Wa Gold Project, North West Ghana" dated April 14, 2011.
For further information on the Wa Gold Project, please refer to the Company's NI 43-101 compliant technical report
JORC Code / CIM
The Mineral Resources outlined in the report are JORC Compliant and not disclosed utilising the Mineral Resource and Reserve categories of the Canadian Institute of Mining (CIM) Definition Standard: A reconciliation of the CIM Mineral Reserve categories and the JORC Code is as follows:
| Category | CIM Definitions Standards | JORC Code (2004) |
|---|---|---|
| Resources | Inferred Mineral Resource | Inferred Mineral Resource |
| Indicated Mineral Resource | Indicated Mineral Resource | |
| Measured Mineral Resource | Measured Mineral Resource | |
| Reserves | Probable Mineral Reserve | Probable Ore Reserve |
| Proven Mineral Reserve | Proved Ore Reserve |