Azumah Resources Limited (ASX: AZM)(TSX: AZR) is pleased to report an expansion in Mineral Resources to 1,016,000 ounces Measured and Indicated and 659,000 ounces Inferred gold plus a substantial upgrade in the classification of all major Mineral Resources at its Wa Gold Project, north west Ghana.
"Infill drilling has confirmed a solid resource platform paving the way for the completion of the Wa Gold Project Feasibility Study" commented Stephen Stone, Managing Director of Azumah Resources Limited.
"We are confident that this year's $20 million exploration programme will
increase Azumah's mineral resources both through discovery and by extending existing deposits."
The infill drilling at the Kunche, Bepkong and Julie deposits was undertaken to improve the classification of shallow mineralisation captured within preliminary open pit outlines. This will facilitate final optimised pit designs and a maiden Mineral Reserve estimate, scheduled for Q2 2012.
The overall increase in the independently estimated Mineral Resources arises from the delineation of new lodes representing new discoveries at all three key deposits, extensions to existing lodes and improved continuity to resources. For instance, Kunche is now confirmed to be continuously and consistently mineralised over 1.4km.
The increase is also partly due to a change in cut-off grade to 0.5g/t Au
(previously 1.0g/t Au for Kunche, Julie and Collette and 0.8g/t Au for Bepkong) that better reflects the prevailing gold price and an improved confidence in several key operating parameters, such as the confirmation of high gold recoveries from feasibility level metallurgical test work.
Measured and Indicated Mineral Resources (JORC code and NI 43-101 Compliant) ave increased by 57% to 19.74 million tonnes grading 1.60g/t Au for 1,016,000ozgold (previously 9.38 million tonnes grading 2.14g/t Au for 646,000oz Indicated) whilst Inferred Mineral Resources increased by 27% to 14.76 million tonnes grading 1.39g/t Au for 659,000oz (previously 8.56 million tonnes grading 1.93g/t Au for 518,900oz). A natural consequence of the reduced cut-off grade has been a lowering of the overall resource grade.
Importantly, all three deposits include near-surface, higher-grade mineralisation that preliminary optimisations and mining schedules have
demonstrated may produce annual production head grades of 2.0g/t Au or above.
On a direct comparative basis (i.e. using previous cut-off grades), Measured and Indicated Mineral Resources increased by approximately 30%, whilst Inferred Minerals Resources were maintained. This reflects the addition of new mineralisation on deposit margins to replace Inferred material upgraded to the Measured and Indicated categories.
SOURCE Azumah Resources Inc