Defining Ghanaian gold before cash raising
One of the Western Australian junior explorers operating in West Africa plans to undertake a detailed drilling campaign in the next few months to begin converting resources to reserves and to test along strike on its major discoveries.
Posted: Monday , 09 Mar 2009
Azumah Resources Ltd (ASX: AZM) will prepare another round of early 2009 drilling on its expanded holdings on a lightly explored greenstone belt in Ghana's far north west region.
The major focus will be on the Kunche and Bepkong leases that collectively contain most of the shallow so far defined resources of 754,300 ounces of gold and on the Julie prospect on the Wa leases on another greenstone suite to the south west which the company announced last week were being acquired from Crew Gold Corporation (TSX & OSE: CRU; Frankfurt: KNC; OTC: CRUGF).
The first drilling programme began in February with six holes to test for shallow and north and south extensions to the Bepkong indicated-inferred resource, and a further two deeper holes on the 516,000 oz Kunche deposit.
Azumah's cash reserves are now down below $A2 million ($US1.3 M) but executive chairman Stephen Stone told Mineweb that the best option would be to establish gold reserves, expand existing discoveries and continue technical studies to raise awareness in the company, before going to the market for more capital.
The 100% owned prospects run close to Ghana's border with Burkina Faso and have a north-south strike of 150 kilometres while the Wa leases take in three licences where drilling and trenching by Crew has identified shallow targets.
Azumah will issue Crew with 6 M shares, giving the established African explorer and miner an initial 6.15% stake in the Perth company. Azumah will issue a further 6 M shares to Crew if, within two years, a JORC Code compliant resource of 300,000 oz to a depth of 100 metres is outlined.
Exploration along a 6 km strike on the Julie prospect gave intercepts including 11m grading 8.47 grams/tonne from 25m depth and 19m @ 3.96 g/t from 11m. Trenching gave better results of 16m @ 35.76 g/t and 10m @ 40.61 g/t.
Positive results came from metallurgical test work late last year that showed that oxide and sulphide mineralisation from Bepkong and completion of testing at Kunche gave recoveries in excess of 95%.
The tests showed high levels of gravity recoverable gold of between 50-70% for Bepkong ore and between 25-40% for Kunche ore.
This, the company said, provides "a favourable impact on operating costs."
Azumah listed in February 2006 and Stone joined the company last year to help sharpen the exploration focus on established targets. The company's major shareholder is Australia's Macquarie Bank with 13%.
Stone said the belt being explored by Azumah has enormous potential and his company was comfortable operating in Ghana because of its political stability and sound mining legislation.