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Press release from CNW Group

Azumah Resources Limited - High-Grade Results at Julie to Underpin Mineral Reserve Upgrade

Tuesday, September 11, 2012

Azumah Resources Limited - High-Grade Results at Julie to Underpin Mineral Reserve Upgrade07:00 EDT Tuesday, September 11, 2012ASX / TSX & Media ReleaseASX Code - AZMTSX Code - Highlights:430,000oz Proved and Probable Mineral ReserveFeasibility Study completed for a 1.0Mtpa gravity/CIL gold plant NI 43-101 and JORC Code reportable 1.02Moz  Measured & Indicated and 0.66Moz Inferred Mineral Resource at Wa Gold Project, NW Ghana 100% of 3,100km2 licences hosting over 150km of prospective Birimian greenstone belt.  Less than 10% effectively explored 17% strategic investment in neighbour, Castle Minerals Limited Board and management team of successful explorers, mining and corporate professionals Issued Capital: 333.7M ordinary shares9.5M unlisted options3.5M performance rightsDirectors & Management:Chairman:Michael AtkinsManaging Director:Stephen StoneNon-Executive Directors:Geoff M JonesBill LeClairCompany Secretary:Dennis WilkinsTORONTO, Sept. 11, 2012 /CNW/ -Latest Julie intercepts confirm that high-grade lodes extend beneath the base of designed open pits and initial Mineral ReservesBest intercepts include:12.0m @ 3.12g/t Au from 85m (AJUC648)7.0m @ 3.23g/t Au from 26m (AJUC671)5.0m @ 23.65g/t Au from 103m (AJUC673)6.0m @ 4.87g/t Au from 156m (AJUC679)6.0m @ 4.07g/t Au from 80m (AJUC680) 13.0m @ 5.95g/t Au from 140m (AJUC682)4.0m @ 9.75g/t Au from 117m (AJUCD684)8.0m @ 3.13g/t Au from 87m (AJUC704)17.0m @ 2.12g/t Au from 79m (AJUC707)13.0m @ 4.09g/t Au from 76m (AJUC710)6.0m @ 3.43g/t Au from 17m (AJDD009) Julie Mineral Resource upgrade planned in Q4, 2012 - currently 386,000oz Measured & Indicated and 181,000oz InferredJulie and total Wa Gold Project Mineral Reserve upgrade planned in Q1 2013 - currently 430,000oz @ 2.0g/t AuAZM holds $20M in cash and listed investments"These excellent results from Julie provide further confirmation that high-grade mineralisation extends over a mineable thickness to well below the depth of previous drilling and current designed pits but is still shallow enough to be open-pitable and therefore likely to have a positive impact on Mineral Resources and Mineral Reserves" said Azumah Managing Director, Mr Stephen StonePerth-based gold explorer and developer, Azumah Resources Limited (ASX: AZM) (TSX: AZR), is pleased to report that another round of high-grade intercepts from drilling at the Julie deposit in the Wa East district of northwest Ghana, West Africa, has further confirmed the continuity of mineralisation below the deepest intercepts from previous drilling.These intercepts, at no greater than 130m below surface, are still relatively shallow and will increase the Julie Mineral Resource.  They may also have a positive impact on the overall Mineral Reserve for the Wa Gold Project (the 'Project') when this is re-estimated in Q1 2013 (Figure 1. Tables 1, 2 and 3).Azumah's recently completed Feasibility Study (refer ASX release dated 27th August 2012) enables it to commence the application for a Mining Licence and other key project development related approvals that, with the planned Mineral Reserve upgrade in early 2013, will then position the Company to make a final development decision.Subject to Project financing, it can then shift into project development mode with the overall objective of producing gold in late 2014.The Feasibility Study confirmed that the Project is viable, has no fatal flaws, has an all inclusive development capital requirement of $144 million and cash operating costs that will see the Project generate approximately $40 million of annual free cash flow, after taxes and royalties, from the initial Mineral Reserve of 430,000oz, grading 2.0g/t Au.Any increase in the Mineral Reserve is expected to have a very positive impact on overall Project returns as it will also provide scheduling, cash flow and pay-back acceleration benefits.  All drilling by Azumah is totally focused on achieving this increase.Azumah's current Mineral Resource of 1.02Moz Measured and Indicated and 0.66Moz Inferred, and its initial 430,000oz Mineral Reserve, are based on a resource block model that utilised drilling completed to the end of 2011 at Kunche, Bepkong and Julie.The Mineral Resource upgrade planned for Q4 2012 will additionally include drill programmes completed during 2012 at each of the three deposits, including deep drilling to test depth extensions and shallow drilling to upgrade Inferred mineralisation to Measured or Indicated classification and then conversion to Mineral Reserves.Julie resultsThe reported drill results represent the latest from a recently completed RC and diamond drilling programme, comprising 72 holes for 9,879m.  Drill traverses were spaced at approximately 100m intervals along strike over the full length of two, 1km long, high-grade, zones of mineralisation in the central part and at the eastern end of the 6km long, shallow north dipping (±30°) Julie shear zone (Figure 2).The results are consistent with earlier results previously announced from the same programme (ref ASX release dated 19th July 2012), and confirm that Azumah will be able to extend its resource modelling from 100m to approximately 150m vertical depth below surface.  This will represent a major increase to the current Julie Mineral Resource estimate of 386,000oz Measured and Indicated and 181,000oz Inferred.The increase in Mineral Resource at Julie will be in addition to increased resources defined by drilling that was recently completed at the flagship Kunche and Bepkong deposits, as well as possible additions arising from drilling at the nearby Aduane trend (refer ASX release dated 19th June 2012).Additional drilling at Kunche, proximal to its optimised pit, has also just been completed. This programme was designed to upgrade material currently classified as Inferred to a Measured and/or Indicated classification, such that it can be included in the Mineral Reserve.  In the Feasibility Study, this material was either treated and expensed as waste or was specifically excluded from the pit optimisation process, with a resultant detrimental impact on strip ratios, costs and overall production.Also, at both Kunche and Bepkong, a number of areas have been identified adjacent to the existing optimised pits, which have not been adequately tested and present an opportunity to delineate additional mineralisation that can be incorporated into both the Mineral Resource and Mineral Reserve.For further information on the Wa Gold Project in general please refer to the Company's website at www.sedar.comand 1: Mineral Reserve Summary Mineral Reserve Summary(As of 21st Aug 2012)ProvedProbableContained GoldTonnes (Mt)Grade (g/t Au)Tonnes (Mt)Grade (g/t Au)oz Au(1)  Bepkong  Kunche  Julie1.72.3-1.92.1-,000238,00074,000Total4.,000* Values have been roundedTable 2: Summary of Wa Gold Project Mineral Resources - 0.5g/t Au cut-off (CSA Global - March 2012)Cut-off0.5 g/tAuMeasuredIndicatedMeasured and IndicatedInferredTonnesGradeGoldTonnesGradeGoldTonnesGradeGoldTonnesGradeGold(Mt)(g/t)(oz)(Mt)(g/t)(oz)(Mt)(g/t)(oz)(Mt)(g/t)(oz)             Kunche3.171.94198,0004.951.52242,0008.131.68440,0007.351.33315,000Bepkong2.021.81117,0001.671.36  73,0003.691.60190,0001.981.32  84,000Julie   7.921.52386,0007.921.52386,0003.741.51181,000Collette         1.691.45  79,000Total5.191.89315,00014.541.50701,00019.741.601,016,00014.761.39659,000Table 3: Julie deposit - Latest RC and Diamond drilling results Hole IDEastNorthDepth(m)DipAzimuthFrom (m)To(m)Width (m)Au (g/t)AJDD009594,4241,115,96582.5-5018517.0023.006.003.43      34.0035.001.001.20      37.0038.001.001.23      44.0046.002.001.15AJDD010596,7691,115,98050.5-5018513.0022.009.001.15      25.8030.004.201.88AJUC648594,5941,116,101151.0-5018585.0097.0012.003.12      103.00104.001.001.49AJUC651595,1091,116,05991-5018552.0055.003.001.57AJUC656595,4161,116,030101.0-5018544.0045.001.007.78      63.0064.001.0045.44AJUC665595,4141,115,97271.0-5018512.0013.001.001.73AJUCD665   -5018574.4076.001.603.08      85.2087.001.804.91AJUC667596,3991,116,03173.0-5018562.0064.002.001.85AJUC671597,4071,115,78382.0-5018526.0033.007.003.23      46.0047.001.001.16AJUC672594,0501,116,02942.0-5018516.0021.005.001.59      28.0034.006.001.40AJUC673596,9021,116,137166.0-5018591.0092.001.002.50      103.00108.005.0023.65     Including103.00104.001.0010.13     Including104.00105.001.0010.18     Including105.00106.001.0086.04     Including106.00107.001.0010.38AJUC674597,0021,116,169151.0-5018581.0088.007.001.91      110.00118.008.001.39AJUC675597,1031,116,150180.0-5018541.0042.001.001.39      114.00123.009.001.17      128.00131.003.001.62      156.00160.004.001.18AJUCD676597,3511,115,942180-5018577.0078.001.0011.52      87.0088.001.001.11AJUC677597,4471,115,896120.0-5018577.0078.001.001.24AJUC679597,6501,115,997187.0-50185156.00162.006.004.87     Including158.00159.001.0021.38AJUC680597,6491,115,840112.0-5018554.0057.003.003.40      80.0086.006.004.07     Including81.0082.001.0016.34AJUC681597,6521,115,922151.0-50185118.00130.0012.001.14AJUC682597,7511,115,938180.0-50185126.00127.001.002.02      140.00153.0013.005.95     Including150.00151.001.0035.74     Including151.00152.001.0024.23AJUC683597,7501,116,008211.0-50185168.00169.001.001.07AJUCD684597,8501,115,927200.8-5018592.0093.001.002.68      117.00121.004.009.75     Including118.00119.001.0013.97     Including119.00120.001.0014.28AJUC685596,8041,116,204186.0-50185108.00109.001.001.15      129.00130.001.001.05AJUC686596,9001,116,219198.0-50185109.00110.001.002.41AJUC687597,1971,116,032112.0-5018568.0072.004.008.49     Including71.0072.001.0020.90      82.0085.003.001.16AJUC688597,2001,116,100164.0-50185102.00106.004.001.19      133.00138.005.001.58      143.00155.0012.001.66AJUC691597,2511,116,033150-50185102.00103.001.001.87AJUC693596,6501,116,10885-5018571.0072.001.003.85AJUC698595,1501,116,129126-5018581.0085.004.002.35AJUC699595,1511,116,214170-50185120.00121.001.001.21AJUC701595,0521,116,196150-50185129.00130.001.001.60AJUC703595,0481,116,125124-5018588.0090.002.001.48AJUC704594,7521,116,103136-5018587.0095.008.003.13AJUC706594,6491,116,02996-5018549.0050.001.002.26AJUC707594,6561,116,092138-5018579.0096.0017.002.12AJUC709594,5501,116,028105-5018553.0064.0011.001.26AJUC710594,5461,116,109170-5018576.0089.0013.004.90     Including76.0077.001.0029.19     Including78.0079.001.0014.60      105.00108.003.001.26AJUC713594,4511,116,172205-50185114.00115.001.003.09AJUC714594,3491,116,119139-5018597.0098.001.001.15* True widths unknown at this timeGrades reported above are based on length weighted averages calculated for continuous sample intervals at a cut-off grading >0.5g/t with up to 2m internal dilution.  All Azumah sample preparations and standard 50 gram gold fire assays were performed by MinAnalytical Laboratory Services (Australia) Pty Ltd, Perth.  Azumah employs a rigorous quality control and assurance program comprising regular insertion of certified reference standards, blanks and duplicates.Competent Person's Statement The 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 report.For 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 set out in this report and the extent to which the estimate of previously declared 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 and effective as of 3rd May, 2012, available on 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 reportsForward-Looking StatementThis 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  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: "Figure 1: Ghana's Emerging Northwest Gold Province (CNW Group/Azumah Resources Inc)". Image available at: with caption: "Figure 2: Latest RC and Diamond drilling results from Julie (CNW Group/Azumah Resources Inc)". Image available at: Azumah Resources IncFor further information: Stephen Stone Managing Director Tel: +61 (0)418 804 564 Ryan - AustraliaNWR Communications +61 (0) 420 582 887 Longo - North AmericaTerre Partners +1 416 238 1414