# AZM - Azumah Resources



## yogi-in-oz (3 September 2006)

Hi folks,

AZM ..... will be alert for some positive news,
around 15092006, as two significant cycles
come into play ..... 

happy days

yogi


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## Sean K (25 March 2008)

Looks like it has the potential to come up with a 1m oz resource and be a stand alone operation in the future.

This ann out this am:



> Drilling Extends New Bepkong Discovery
> 
> Azumah Resources Limited (ASX: AZM) is pleased to announce excellent results from the first 21 of a recently completed 36-hole reverse circulation and diamond drilling programme at the Bepkong gold discovery at its Wa-Lawra Gold Project in north-west Ghana including:
> 
> ...




I wonder why it went up 15% last trading day? LOL 

Just 81m shares at 11 cents (just $8.1m mc ) makes it potentially one of the lowest oz au to mc resources out there.


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## So_Cynical (26 March 2008)

Most of the hits are shallow too....AZM almost certainly have 1 Mill Ozs.

why the hell i didn't buy at the ridiculous prices a few weeks ago...ill never know.:dunno: 
if nothing else AZM must be a take over target for a cashed up, mid tier Goldie.


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## Sean K (26 March 2008)

So_Cynical said:


> Most of the hits are shallow too....AZM almost certainly have 1 Mill Ozs.
> 
> why the hell i didn't buy at the ridiculous prices a few weeks ago...ill never know.:dunno:
> if nothing else AZM must be a take over target for a cashed up, mid tier Goldie.



Yep, I agree, a bit of speculation, but anyone else in the region who could take them? How far away is the new LGL/EQI?

If they can shore up 1m oz au in those 2 deposits, near surface, open pit, then it's gotta be worth more than a few mil.

On 1m oz, their mc (@.13 = $10.5m) to oz au ratio is.....10.5? That seems pretty damn low to me. Actually, it's half that of any other goldie that I have on my resource to mc comparison table..

A nice little bounce yesterday. Still not trending anywhere but down right now though.


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## cordelia (26 March 2008)

kennas said:


> On 1m oz, their mc (@.13 = $10.5m) to oz au ratio is.....10.5? That seems pretty damn low to me. Actually, it's half that of any other goldie that I have on my resource to mc comparison table..




Hi sorry to ask but what does that mean? Can you explain a bit further for the less knowledgable


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## jman2007 (26 March 2008)

kennas said:


> On 1m oz, their mc (@.13 = $10.5m) to oz au ratio is.....10.5? That seems pretty damn low to me. Actually, it's half that of any other goldie that I have on my resource to mc comparison table..






cordelia said:


> Hi sorry to ask but what does that mean? Can you explain a bit further for the less knowledgable




This is basically an indice that allows a value comparison to be made based on a companies market cap to their attributable resources (in this case, the 1 million ounces is a hypothetical figure, and is based on _potential_ resources that could be uncovered at Bepkong and Kinche).

So we have: $10,500,000/1,000,000 oz = 10.5

So as the number tends towards zero, this represents increasing "value" or more simply; more bang for you hard-earned buck.

I don't really use this index myself, so Kennas pls correct me if my explanation is incorrect or misleading, but I definitely do see the value of what it can provide for investing purposes.

The anomalous geochem zone between Bepkong and Kinche to be tested by 15 RC holes could be very important for the company.  Potentially Bepkong and Kinche could be part of one large mineralized system, considering their proximity to each other.  If think Azumah would try and make a strong case for this scenario if the drilling results indicate this. The value this could add to the company could be very significant.  But plenty more work to be done yet...

I don't quite understand why the recent Bepkong RC results were sampled as 4 meter composites.....This is the first time I've seen composite sample results reported for RC drilling.  Perhaps this was done to reduce exploration expenditure (ie less assays) during first-pass drilling.  Whether the competent person views this as acceptable when considering a block model is something I can't answer.  Perhaps they will need to re-assay on a 1m basis to satisfy requirements under JORC.  

Anyways, imo this represents good value when compared to other West African explorers, especially when using the MC/oz index.

My 
jman

(At least So Cynical and me have finally agreed on a gold stock for once!!)

Disclaimer: DNH


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## So_Cynical (26 March 2008)

kennas said:


> Yep, I agree, a bit of speculation, but anyone else in the region who could take them? How far away is the new LGL/EQI?



Anglo Ashanti has a big position in Ghana, but i doubt AZM has enough gold to
interest them...i reckon the LGL/EQI mine in CÃ´te d'Ivoire is about 3 or 400
clicks away...as the crow flys.

Theres a few international goldies operating in Burkina Faso, sorta Nth west of 
where AZM is...maybe 1 of them would be interested.:dunno:

http://en.wikipedia.org/wiki/Burkina_Faso


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## Sean K (27 March 2008)

jman2007 said:


> This is basically an indice that allows a value comparison to be made based on a companies market cap to their attributable resources (in this case, the 1 million ounces is a hypothetical figure, and is based on _potential_ resources that could be uncovered at Bepkong and Kinche).
> 
> So we have: $10,500,000/1,000,000 oz = 10.5
> 
> ...



Yep, I use this as an initial guide to indicate potential value. There are MANY other factors to consider including grade, depth, ground, water, infrastructure, country, management, etc. So, it's just a start and a method to try and compare apples with apples. And yes, the 1m oz au, is their target. Company is pushing for 1 to 2m. On their 500K JORC the ratio is about 21, which is still VERY low, for a potential open pit with OK grades at around 2g/t. But the company seems to think they need 1m oz to have a stand along operation.

On another point, how refreshing is it that management are a bunch of geologists, instead of ex bankers, traders, and dot com wreckage!



So_Cynical said:


> Anglo Ashanti has a big position in Ghana, but i doubt AZM has enough gold to interest them...i reckon the LGL/EQI mine in Côte d'Ivoire is about 3 or 400 clicks away...as the crow flys.
> 
> Theres a few international goldies operating in Burkina Faso, sorta Nth west of where AZM is...maybe 1 of them would be interested.:dunno:
> 
> http://en.wikipedia.org/wiki/Burkina_Faso



Cheers. I do note in one of their last presentations they stated that they were looking to be part of the consolidation in W Africa. Can't see them being a predator though. Yet.


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## jman2007 (2 April 2008)

kennas said:


> On another point, how refreshing is it that management are a bunch of geologists, instead of ex bankers, traders, and dot com wreckage!




Had a yarn with Bernard Aylward today, GM of AZM

I asked him about the rationale behind the 4m composite RC sampling at Bepkong, and his response was that it was mainly done as a cost saving measure. For further delineation of the prospect they will be going back to do 1m sampling, which will also be a requirement for future resource classification.

Much of the geochem data that AZM spent a good deal of time reviewing and interpreting was collected from the mid-90's onwards, and also includes data from AZM's own auger drilling programme. Much of the auger sampling was collected in the top 2-3m, so the integrity of the data should be good ie. not contaminated with recent aeolian/colluvial material.

When I asked about the spatial relationship between Kinche and Bepkong, Bernard preferred to use the term "camp" to describe this area, which is more or less an amalgamation of deposits over a short area of strike. The potential upside looks really good, though plenty more drilling to come for sure.

Still dnh 

Cheers
jman


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## Sean K (7 April 2008)

I didn't realise AZM were tied up with the opes thing. eeeek. 

Number of shares as at end of trading on 4 April 2008 in respect of which ANZ has an interest as a result of transactions entered into pursuant to the Opes Prime AMSLAs 
*5,700,000*

Total number of issued ordinary shares as at 4 April 2008 (based on publicly available information)
*81,000,000 *

Percentage of ordinary shares
*7.037%*

I had a small order in there at 9.4 that was taken and I could have done better by the looks. 

Has come off a bit already, and this only makes it cheaper IMO. MC to oz au, on 9.2 c with 500k JORC is 14.9. Any lower? 

And they're likely to get over 1m oz au, so it's looking compelling IMO.


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## TheAbyss (7 April 2008)

I am astounded at some of the companies on the ANZ list. Some of them are a long way off producing anything. To borrow money for a bet on a race horse is pretty silly and obtaining a ML for some of the high risk explorers on that list is just as rash imo.

Having said that it will crate an opportunity for some and heart acvhe for others.

AZM have been declining for more than 12 months prior to Opes so why buy now? I would welcome some positive points.


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## TheAbyss (7 April 2008)

List of companies form ANZ attached if you have not had the chance to snag it elsewhere.......How many words to make 100?


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## Sean K (7 April 2008)

TheAbyss said:


> I would welcome some positive points.



I'm interested in them as potentially a low cost producer. Could have 1m oz open pit, decent grades, with significantly more exploration potential. Currently, on an MC to oz au comparison (about 14) they're very undervalued. Average explorer ratio is above 20. Developers 50+ and producers 150+.


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## TheAbyss (7 April 2008)

Thanks Kennas. Any reasoning on the slow decline or just a lack of patience from investors perspective? Looks promising and one for the black book if some confidence in the market generally can be found


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## jman2007 (7 April 2008)

TheAbyss said:


> Thanks Kennas. Any reasoning on the slow decline or just a lack of patience from investors perspective? Looks promising and one for the black book if some confidence in the market generally can be found




AZM's ground along the Wa-Lawra belt is fairly under-explored Abyss, their tenure is also in a fairly interesting area in the NW of the country, so geographically this is fairly far removed from the Ashanti belt where a lot of the "world class" deposits have been found.  This may in part explain why AZM has so far received scant attention from the market.  But in a lot of ways, this adds to the appeal of AZM imo and their recent exploration success should give them a high degree of confidence that their exploration strategy will continue to pay dividends.

Probably the chart reflects the general apathy and volatility over the last 6 months, and lets face it, this is greenfields exploration we are talking about here.  Exploration is all about risk, or reduction of risk I should say, but as Kennas notes, the potential upside here looks promising.

jman


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## Sean K (13 April 2008)

kennas said:


> I didn't realise AZM were tied up with the opes thing. eeeek.
> 
> Number of shares as at end of trading on 4 April 2008 in respect of which ANZ has an interest as a result of transactions entered into pursuant to the Opes Prime AMSLAs
> *5,700,000*
> ...



ANZ still have quite a few shares to get rid of. Just sold a few hundred K so far but still hold 6.7% of the company. This is going to depress the sp until they find a big buyer, or they're more slowly disposed of. I can't see them getting back above 10 cents until this is achieved. Disappointing timing for me, but perhaps an opportunity to accumulate for anyone believing in the story longer term. I won't be buying too many more until ANZ are closer to finalising their position.    

As far as upside now, it's going to be a waiting game I think. At leat till the next drilling campaign produces some results.



> “The last three drill campaigns at Wa-Lawra have confirmed the tremendous prospectivity of the 100km of Birimian greenstone belt hosted by Azumah’s licences, “said the Company’s Executive Chairman, Mr Stephen Stone.
> 
> “Our next drilling programmes commencing in May will be designed to define JORC compliant resources at Bepkong; to infill the new southern extension; to infill and test to greater depth the mineralisation at Basibile; and to test other auger soil anomalies” he added.
> 
> “With over 20 quality targets yet to be tested, we remain confident of delineating a near-surface gold resource in excess of 1 million ounces to underpin a stand-alone open-pit mining operation”


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## vegemite (13 April 2008)

AZM, (along with PRU and IGR) get mentioned in the latest issue of (9th April 08) of StockAnalysis. Main points:

* going gangbusters on exploration front but this hasn't been reflected in the share price
* pleasingly higher grades are dragging the resource towards 1 million ounces 
* stock price kept down by being caught up in the Opes Prime situation
* he (Peter Strachan) thinks it represents bargain buying

approx $7.8 million mkt cap (at friday's 9.7 cents), with $2.5 million cash so an enterprise value of only $5.3 million. On this basis, I've bought a few (not too concerned about the Opes angle as a temporary factor which might just provide good buying opportunities)

Cheers, V


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## jman2007 (13 April 2008)

The Opes collapse is unfortunate for AZM,

I had no idea that they were tied up with this either.  Over the short-term it may turn into a bit of a waiting game as you mention Kennas, as we discover how ANZ will play their cards.  Over the long-term, I can't see it doing too much damage to the AZM cause though.

I'm still not entirely convinced by the AZM story...yet . I would be a lot happier if they had another deposit like Kinche in their hip pocket, but that's just me being me :.

With a MC of this size, I imagine there would be a few other bigger fish watching AZM closely as well, still agree this is looking cheap on a peer-comaprison basis.

jman


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## vegemite (15 April 2008)

thanks jman,

would be interested of course to hear what your reservations regarding AZM might be. 

i'm going to the gold coast resources showcase in mid june. azumah are presenting there (along with 40 other companies) so i'll be taking the opportunity to find out as much as i can etc,

cheers, v


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## jman2007 (16 April 2008)

vegemite said:


> thanks jman,
> 
> would be interested of course to hear what your reservations regarding AZM might be.
> 
> ...




Hi Vegemite,

Well not really reservations as such....more to do with the inherently risky nature of greenfields exploration I suppose. As I've said before, exploration is all about risk. Once the dust settles from the Opes situation, and if AZM can begin to supply a steady stream of positive news to the market, this stock may become a great one to trade on a short-term basis.  

For me personally, they don't suit my investing style atm, but based on their huge tenement holdings and potential upside, I'm going to continue to watch with interest. The Gold Coast resource show sounds great.  Maybe you can give us a lowdown on any gold presentations there, and you thoughts. Long way off though.

jman


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## Sean K (23 April 2008)

Interesting move by the EC to purchace a couple of more shares. Obviously has some confidence in his company. Hopefully the market starts to have some more confidence and rerate it.



> *Executive Chairman Acquires a Further 3 Million Azumah Shares*
> 
> Azumah Resources Limited (ASX: AZM) is pleased to announce that the Company’s Executive Chairman, Mr Stephen Stone, has acquired an additional 3 million Azumah shares making him one of the Company’s major shareholders with a substantial holding of over 5.7%.
> 
> ...


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## Sean K (24 April 2008)

kennas said:


> Interesting move by the EC to purchace a couple of more shares. Obviously has some confidence in his company. Hopefully the market starts to have some more confidence and rerate it.



Up 30% after this news. On small volume, but they only have a few on issue.

Nice to see them get a bit of airplay.



> Azumah Resources Limited (AZM) shares jumped 30% after it said executive chairman, Stephen Stone, had acquired an additional 3 million Azumah shares making him one of the company’s major shareholders with a substantial holding of over 5.7%. Mr Stone said the share transaction reflected his underlying confidence in the potential of the emerging West African explorer’s flagship Wa-Lawra Gold Project in north-west Ghana, which has a current JORC-compliant resource of over 516,000 ounces of gold at the Kunche prospect.



Too early to say if the downward trend has stopped but looks promising. They still have about 5% held in the Opes fiasco I think, so there may be some more downward pressure while the shares are moved and until they start the next drilling campaign.


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## copper_hot (29 April 2008)

Looks like a great stock.. I wanted to get onto it but been waiting for ANZ to sell off first.. any idea how much they still holding? I dont think they've sold anything after their first round selling.


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## Sean K (10 May 2008)

copper_hot said:


> Looks like a great stock.. I wanted to get onto it but been waiting for ANZ to sell off first.. any idea how much they still holding? I dont think they've sold anything after their first round selling.



Might depend on what that big volume was a few days ago. Perhaps it was a transfer. I wasn`t watching the depth then. Even if they got rid of 3m then they still hold quite a few. Maybe 3-4%. I think they should just hold them, still at the lower end of the au to mc chart, only beaten by RER I think. 

Nice day yeasterday, but still stuck in this sideways zone. I still think there ´s a floor at 9, breaking 15 should set it free.


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## Sean K (27 May 2008)

All that volume was obviouly the transfer of shares due to the Opes debacle.

Ann out this am regarding drilling out of the prospect to the north of the JORC deposit, but is obviously connected in some way, if only minimally.



> *Drilling Underway to Upgrade Wa-Lawra Gold Resource*
> Sale of Opes Prime and Croesus Overhang Stock Completed
> 
> Azumah Resources Limited (ASX: AZM) is pleased to announce that a 5,000m diamond and RC (reverse circulation) drill programme at the Company’s 100%-owned flagship Wa-Lawra Gold Project in north-west Ghana has commenced with the primary aim of delineating an inaugural JORC compliant resource at the recently discovered Bepkong prospect, 2km north of the Company’s 516,000 ounce Kunche inferred and indicated resource.



I'm interested in this for 3 reasons:

1. Undervalued on JORC to MC.
2. Highly prospective ground, only to accentuate the above factor.
3. If they achieve 1m oz au + then they will be a takeover target.

So, fundamentals and spec. Not a multi multibagger IMO, (no indication of that yet) but just a seemingly well managed, undervalued gold explorer. I'm in ave about 10 cents, so if it finds it's way to 15 plus, I'm happy. 



> “With an enterprise value of just A$14 per resource ounce based solely on its JORC-compliant resource of over 516,000 ounces of gold at the Kunche prospect, Azumah is fundamentally and comparatively undervalued against its West African peers - especially given the new discovery at Bepkong has not yet been factored in,” Mr Stephen Stone said.
> “Shareholders can expect a steady news flow over the next few months as the Company commences two more drilling campaigns ahead of a planned resource update in July and the completion of metallurgical test work.”


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## AussiePaul72 (7 June 2008)

I totally agree Kennas! 

I researched AZM and watched on the sidelines for a while before getting on board last week at 12c. IMO it is undervalued when comparing known resources to a market cap of around $10M. Lots of potential for resource upgrade in the near future. 

Market depth has been steadily growing stronger and stronger recently and if the broader market remains at least on par we may see a rally in SP this coming week. I say this as there are 32 buyers lined up for a total of over 2.1M shares and only 7 sellers for just over 300T shares at present. Interesting weeks ahead!


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## vegemite (8 June 2008)

I'm going to an Azumah presentation on Fri at the Gold Coast Resources showcase. So if I pick up anything of interest I'll post it.

StockAnalysis likes it. In his most recent comment (28 may) he makes the following points:


Buy below 20 cents. 
Valuation of 32 cents (assuming $40/oz and 900,000 commercial ounces)
Opes overhang cleared
Lowly rated at the moment ($14/0z) due to 0.5 million ounces not being commercial at its location and $2 million in the bank 
Resources are in a relatively remote area of Ghana - away from other gold mining areas but still with good access to power and transport infrastructure
Upgrade of resources expected in July. At the same time probably a capital raising (maybe 5 million) to fund feasibility)
A matter of attaining critical mass (approx 1 million ounces) to attain rerating

You would imagine that with 560,000 ounces already and an upgrade in July that getting to around the million ounces mark is not to big an ask

Cheers V


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## Sean K (9 June 2008)

vegemite said:


> You would imagine that with 560,000 ounces already and an upgrade in July that getting to around the million ounces mark is not to big an ask
> 
> Cheers V



I don't think there is any doubt that they will _eventually _get the 1m oz over the entire tennament package, but it needs to be concentrated in a square area IMO. That is the risk right now. They need the area surrounding the current JORC to produce the required ounces at good grades close to surface, or it will go like a lot of other multi deposit explorers. No where. I'm sticking with the punt for now, and in on the right side of exploration. Once they get the 1m oz, they will be rerated and the big gains may have been missed. (or, you will have saved some pennies )


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## jman2007 (11 June 2008)

kennas said:


> I don't think there is any doubt that they will _eventually _get the 1m oz over the entire tennament package, but it needs to be concentrated in a square area IMO. That is the risk right now. They need the area surrounding the current JORC to produce the required ounces at good grades close to surface, or it will go like a lot of other multi deposit explorers. No where. I'm sticking with the punt for now, and in on the right side of exploration. Once they get the 1m oz, they will be rerated and the big gains may have been missed. (or, you will have saved some pennies )




I think a hypothetical price target of 15c would represent a very nice result, if your average buy-in price is 10c kennas. Long-term prospects and development potential still well off the page atm, but needless to say a 1Moz target still looks achievable over time. Exploration potential still looks to be slightly hamstrung by the modest budget, but it's hard to argue with a MC to oz ratio of $14.

Given the plethora of Australian and Candian companies now active in Ghana, it appears as though it's quite hard to make your voice heard above the clamour from everyone else. Investors on the ASX also seem to attribute a significiant "risk discount" to a lot of Australian outfits operating offshore, and would appear to undervalue many goldies compared to their Canadian compatriots on the TSX.

jman


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## Sean K (11 June 2008)

jman2007 said:


> I think a hypothetical price target of 15c would represent a very nice result, if your average buy-in price is 10c kennas. Long-term prospects and development potential still well off the page atm, but needless to say a 1Moz target still looks achievable over time. Exploration potential still looks to be slightly hamstrung by the modest budget, but it's hard to argue with a MC to oz ratio of $14.
> 
> Given the plethora of Australian and Candian companies now active in Ghana, it appears as though it's quite hard to make your voice heard above the clamour from everyone else. Investors on the ASX also seem to attribute a significiant "risk discount" to a lot of Australian outfits operating offshore, and would appear to undervalue many goldies compared to their Canadian compatriots on the TSX.
> 
> jman



Yep, I agree jmann, and perhaps I'm selling it short at 15 cents. $30 an ounce seems to be the average for spec explorers in the region, so 20c is more about where it should be. The current drilling program should add in further ounces so it will be even cheaper on todays sp. And if they crack the targetted 1m oz, then it should be around about 40c all things being equal.  



kennas said:


> Too early to say if the downward trend has stopped but looks promising. They still have about 5% held in the Opes fiasco I think, so there may be some more downward pressure while the shares are moved and until they start the next drilling campaign.



Looks like that was a bottom, at this stage. Been moving up ok developing a bit of an ascending triangle. Need to break this 13c wall!!


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## Sean K (13 June 2008)

kennas said:


> Looks like that was a bottom, at this stage. Been moving up ok developing a bit of an ascending triangle. Need to break this 13c wall!!



Too early to say, but holding above 13 with a tiny bit of buy depth building (some of it's me). However, will only take one keen seller to knock the buy side out as it's so thinly traded. More POG weakness could certainly cause that, or just a punter needing to pay off the margin call on BNB. eeeek!!

Here's a longer term perspective that shows a clear bottom confirmed by the indicators and a steady rise since high 9s. Longer term the next major resistance is shown, with some patchy stuff in between.

Need the initial JORC from Bepkong to be OK and general drilling to confirm the continuity of the overall gold strike in the tenaments for it to keep going I feel. Along with POG not imploading of course. And no black swan landing in the market pond.


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## jman2007 (14 June 2008)

kennas said:


> Too early to say, but holding above 13 with a tiny bit of buy depth building (some of it's me). However, will only take one keen seller to knock the buy side out as it's so thinly traded. More POG weakness could certainly cause that, or just a punter needing to pay off the margin call on BNB. eeeek!!




Wow,

This has really started to move since the low 9's, up another 7.5% yesterday, I wonder where these buyers are materialising from? I've currently got 30 buyers for over 2M units vs 8 sellers for 0.4M atm....seems like some nice depth is starting to build.

If Bepkong eventually turns out to be anything like Kunche, as in 250k oz or more, then this could get very interesting.

jman


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## Sean K (18 June 2008)

jman2007 said:


> Wow,
> 
> This has really started to move since the low 9's, up another 7.5% yesterday, I wonder where these buyers are materialising from? I've currently got 30 buyers for over 2M units vs 8 sellers for 0.4M atm....seems like some nice depth is starting to build.
> 
> ...



Another nice day, reaching my intial take profits target, but I'm holding on for the minute. Looks like it's being chased with the sell side disappearing as buyers accumulate. Unfortunately I was not agressive enough in the chase and have sat back waiting for a natural correction. Up over 50% since the lows. Oh well, still doing ok out of them on paper. Not getting too excited yet but don't see this getting overvalued on oz to au JORC until it's well over 20c, which is around about industry average on current known resources. I don't like to use the word no brainer, so I won't.


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## jman2007 (18 June 2008)

kennas said:


> Another nice day, reaching my intial take profits target, but I'm holding on for the minute. Looks like it's being chased with the sell side disappearing as buyers accumulate. Unfortunately I was not agressive enough in the chase and have sat back waiting for a natural correction. Up over 50% since the lows. Oh well, still doing ok out of them on paper. Not getting too excited yet but don't see this getting overvalued on oz to au JORC until it's well over 20c, which is around about industry average on current known resources. I don't like to use the word no brainer, so I won't.




A great example of picking an undervalued company that appears to have been grossly overlooked by the market. I would be very, very happy with those gains kennas in what can only be described as an absolutely horrific past few weeks for the _aussie_-based gold plays! 

jman


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## Sean K (19 June 2008)

Trading halt for the release of interim drill results of the current campaign. Must be very good, or very bad, but considering the stock has run from 11 to 16 cents in the past few days I would suggest some people have been talking to friends, and they will be good. Fingers crossed.


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## jman2007 (20 June 2008)

kennas said:


> Trading halt for the release of interim drill results of the current campaign. Must be very good, or very bad, but considering the stock has run from 11 to 16 cents in the past few days I would suggest some people have been talking to friends, and they will be good. Fingers crossed.




Yeah I saw the trading halt announced with interest. I tend to think they would be fairly significant in this case, usually poor results are buffed up a bit with "further assays pending" blah blah. I think we saw with CGX how the stock started to run hard before the near-mine exploration results came out. Not saying this is an identical situation, but surely more going on than meets the eye here? 

jman


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## vegemite (20 June 2008)

When I saw their presentation last Friday, I didn't pick up any vibes that anything big was in the offing. My partner however had a sense that he was quite excited underneath it all. Would be happy for her to be on the money in this case.

My contribution is that I learnt that azumah means both warrior and friday - I'm sure that will help everyone hugely,

Cheers V


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## Sean K (21 June 2008)

Damn it! POG could have been kinder and the DOW could have gone up 2% for us instead of tanking for this prospectively good ann. Now, if it's crappo, there could be some pain. Damn stock market!!! LOL 

At least if it's good, we won't feel too much pain, but the potential boost has been thwarted by bad timing. Arrrghhhhh!


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## Sean K (23 June 2008)

Not bad:



> *Wide High-Grade Gold Hits Significantly Enhance Bepkong Gold Discovery
> 
> Results Include 26m at 6.90g/t Au including 8m at 15.35g/t Au*
> 
> ...




Another open pittable deposit here by the looks. They may have their 1m oz in just Kunche and Bepkong...



> “The mineralisation is clearly still open at 80m depth but our focus is on defining by year-end a one million ounce near-surface resource to underpin a stand-alone open-pit mining operation – an objective which we are increasingly confident of achieving,” Mr Stone said






Looking forward to East Kunche which should be imminent also. 

Such a shame the DOW tanked...


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## Sean K (23 June 2008)

One of a few green one's today. Damn DOW! And POG could be going balistic instead of trending down too!!!! Oh well.

Just readjusting some figures on if they achieve 1m oz au and on a current MC to potential oz au they come in at $13.5. Still half that of the general explorer market at $30. 

Chart wise, coming up against a hurdle at 18 and then a rough patch to 23. Not sure what it will do around these levels.

Needs some more consolidation at some point anyway.


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## jman2007 (23 June 2008)

kennas said:


> Not bad:




Not bad?... That must be your poker face #3 kennas.

Some outstanding results from the RC drilling, especially the substansial intersections from near-surface. I'd be keen to see some x-sections from AZM at some stage, the parallel lode concept looks interesting. Still substansially undervalued on a MC to oz ratio as you note kennas, would expect/hope that some consolidation occurs along the way.

Had a great couple of weeks.

jman


----------



## Sean K (25 June 2008)

jman2007 said:


> Not bad?... That must be your poker face #3 kennas.



he, he. Might be right. 

Great results and it's flowed through to the sp. Has gone up 100% in 2 months. Don't find undervalued stocks like these very often. 

Should be some natural consolidation around these levels I think, as mentioned above on the one year chart. 

jman, you may be interested in the X sections from Bepkong. See the picture below out of their last presentation. Quality of this isn't flash but you will find it here.

Now looking forward to Kunche East results. Hopefully a follow on from initial drilling:

8m @ 9.35g/t Au from 0m
8m @ 5.64g/t Au from 5m
7m @ 3.95g/t Au from 10m

The other area of interest will be the geochem anomaly just north of Kunche on the west side of the fault. It's in the mineralised corridor and to have another deposit in the immediate vicinity will go a long way to making this economical. See picture below.

Also, drilling is underway about 40km north of Kunche at Basibile. Initial exploration drillling there hit some wide low grade mineralisation from surface. Drilling results from here should be available shortly. I don't have too high a hopes for this area, the grades were too low. Maybe deeper they get something worthwhile.

Also, BRR interview with Stephen Stone on last drill results.


----------



## jman2007 (29 June 2008)

Well I've had a look through a lot of AZM's releases, x-sections and plans, but probably didn't learn too much more tbh. The "cartoon"-type sections are useful for visulaizing the possible orientation of the ore body, but are purely interpretive at this stage. The prospect of Bepkong still being open along strike to the south would be a rather mouth-watering proposition however 

I don't seem to recall the initial Basibile results setting the world on fire, but then again, Bepkong was drilled just on one single 2-3m deep auger hole that returned an anomalous result, and they have 20 of these such targets right along the belt. Even if they managed to turn just 10% of these anomalies into deposits, that would still be a great result.

AZM might eventually prove-up an entire "gold camp" of deposits around Kunche and Bepkong, the Kunche East results should also be interesting. I guess we just need to sit back and wait for them to follow up on these geochem anomalies around Kunche/Bepkong, they look to be very prospective too.

jman


----------



## Sean K (1 July 2008)

kennas said:


> Also, BRR interview with Stephen Stone on last drill results.



I think the plan was for an initial JORC at Bepkong in July but I think he says start of August in the interview. In the mean time should be some more results flowing which could put a floor under the sp. Fingers crossed for upside surprises.



jman2007 said:


> Well I've had a look through a lot of AZM's releases, x-sections and plans, but probably didn't learn too much more tbh. The "cartoon"-type sections are useful for visulaizing the possible orientation of the ore body, but are purely interpretive at this stage. The prospect of Bepkong still being open along strike to the south would be a rather mouth-watering proposition however
> 
> I don't seem to recall the initial Basibile results setting the world on fire, but then again, Bepkong was drilled just on one single 2-3m deep auger hole that returned an anomalous result, and they have 20 of these such targets right along the belt. Even if they managed to turn just 10% of these anomalies into deposits, that would still be a great result.
> 
> ...



I like those 'cartoon's jman!  

You're right Basibile looked ordinary. The only great plus is that there is gold in the ground, just need to find some decent grades. 10g/t will do me. 

And agree on the Kunche/Bepkong area. Over those distances they'd just have one mill running and hit each target by priority, or similtaneously, depending on the economics of the day. With gold hovering around $1000 an oz they need to take advantage of that and get digging asap. Still need that magical 1m oz + though I think. 

I do also remember in one of their early presentations Stone mentioned that they would probably be seaking a partner. Would be a nice boost if they had a larger operator come in with a bag of gold to make financing etc a smaller issue.  

Chart wise, stopped at resistance as expected. Just surprised it got there so fast. 



kennas said:


> Longer term the next major resistance is shown, with some patchy stuff in between.




I was concerned about a larger scale sell off from stale holders and short term profit takers, but it's held up ok, so far. 

Looking at the cristal ball I previously mentioned the possibility of a cup and handle forming (was in my blog I think) with the tips of the cup at about 20. If a handle starts forming between those blue lines then it's looking like a chance. Target from this sort of thing is the distance from the base of the cup to the tips, once it breaks up. Needs to break that significant resistance at 28 ish too to get there. Pretty damn speccie, but I like playing around with these things... 

Could go back to 10c too if POG crashes, next results come up as dust, there's a coup in Ghana, etc etc...:


----------



## Sean K (2 July 2008)

First time I've found AZM in the news. 

Nothing we don't really know except for the mention of the Kuo target. Not sure about that. And staes JORC in August for Bepkong...

This from mineweb:

*RESULTS COULD BOOST RESOURCE *

Bepkong drilling results may reinforce Azumah’s million oz goal
New drilling results from Azumah Resources’ Wa-Lawra gold project in Ghana could reveal the potential of Azumah’s recent Bepkong discovery.

Author: Paul Bugden
Posted:  Tuesday , 24 Jun 2008 

LONDON -  

West Perth-based Azumah Resources' (ASX: AZM) recently released RC and diamond drilling results prompted Executive Chairman Stephen Stone to predict that "Bepkong may come in at a higher overall grade than the 516,000-ounce Kunche resource."

Intersections found 26m at 6.9g/t gold including 8m at 15.35g/t gold (from 28m), 40m at 3.45g/t gold including 20m at 5.45g/t gold (from 4m), and other composited samples leading to hopes within Azumah that their proposed open-pit mine might reveal richer gold seams with a more detailed JORC assessment.

Azumah executives will have to wait a couple of weeks for the assay results from the individual 1m samples taken from the mineralised zones and the diamond core extensions to four RC holes. For now their primary drilling objective is to make the Bepkong project ready for an initial Joint Ore Reserves Committee Code compliant resource in August 2008. Nonetheless, Stone thinks that would still be a "great advance" considering the site was only discovered in December 2007.

Azumah also reports the possibility of two parallel mineralisation systems at Bepkong and have decided to drill another six RC holes to find out if they can extend Bepkong's gold mineralisation further to the north to try and push the prospect's resources higher.

Bepkong is one of a series of targets being scrutinised by Azumah, who plan to announce drilling results and resource upgrades from its other prospects Kunche East, Basible and Kuo in the second half of 2008. The company has hopes to prospect their "relatively unexplored" 2,800 sq km land holding includes over 100km of strike made up of Birmian greenstone belt.

All of this could achieve Azumah Resources' desired target of 1 million ounces of near-surface gold resources for the end of the year, according to Stone. He noted the company's steadily growing confidence in achieving their objective, adding that the project's gold mineralisation at Bepkong is still open at 80m depth.

Recently Stone raised his stake in Azumah to 5.7% by buying an extra three million shares in the company, lifting his overall holdings to 4.63 million shares. Stone cited the Wa-Lawra project as the underlying reason for his increased stake.


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## Sean K (5 July 2008)

This is getting very cheap again due to the correction, and consolidation as expected.

Lots of short vision lemmings jumping off the cliff at the moment.  

More results due, gold going up, initial JORC at Bepkong coming up, upgraded JORC at Kunche, consolidation in the sector, and current Au to mc of $22. If they get the 1m oz then it's $11 right now. About a third of the general explorer market. Don't need to be a rocket surgeon to work it out.


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## Sean K (17 July 2008)

Not bad 



> *Outstanding Drill Results Continue At Bepkong
> 
> Best results include:
> 
> ...




Seems sure to be quite a nice initial JORC, hopefully pushing the combined resource to around the 1m oz mark. 

As I've been saying still undervalued on a peer comparison.



> “Even with just the present Kunche gold resource, the market capitalisation of Azumah per ounce of gold resource - after subtracting its present cash - is well below the benchmark for other companies at a similar stage in the exploration cycle, so Azumah must represent one of the best value junior gold explorer investments available right now,” Mr Stone continued.




Such a shame this didn't come out when gold was going balistic. Will put a dampner on things.


----------



## jman2007 (28 July 2008)

kennas said:


> Not bad
> 
> Seems sure to be quite a nice initial JORC, hopefully pushing the combined resource to around the 1m oz mark.
> 
> As I've been saying still undervalued on a peer comparison. Such a shame this didn't come out when gold was going balistic. Will put a dampner on things.




38.15m @ 6.62 g/t? 

Dang, doesn't seem to be getting anywhere near the recognition it deserves. Been on site for a while so haven't really had a chance to look at the release in any detail, but warrants a closer look for sure. Does look very cheap again, unfortunately looks like the rule book and calm heads have gone out the window yet again! 

You still holding kennas?

jman


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## Sean K (28 July 2008)

jman2007 said:


> 38.15m @ 6.62 g/t?
> 
> Dang, doesn't seem to be getting anywhere near the recognition it deserves. Been on site for a while so haven't really had a chance to look at the release in any detail, but warrants a closer look for sure. Does look very cheap again, unfortunately looks like the rule book and calm heads have gone out the window yet again!
> 
> ...



Yeah, great results, which were appreciated for about 3 hours. I bought more on the ann. Correcting with everything else, but on light volume which is comforting. Sort of. Gold specs are not the place to be at the moment. Well, for the past 6 months anyway. Mainden JORC for Bepkong next month, hopefully. Would like to see something between 200-500K oz.


----------



## jman2007 (28 July 2008)

Quaterly Report looks fairly upbeat,

There are a decent number of assay results pending which could throw another cat amongst the pigeons, if they return positive results. This includes 8 RC holes targetting shallow mineralisation immediately east of the Kunche Resource, and some first-pass regional RAB drilling over at "Kunche East". 

I did notice that some of the Bepkong intersections for holes BRC080-BRC086 are starting to get quite deep, although most of them do have a fairly impressive tenor. eg BRC080: 20m @ 6g/t from 104m, incl 8m @ 12.81 from 116m. Cash reserves will need to be topped up over the next 6 months too, only about $1.6M left.

Will be interesting to see how many ounces they can squeeze out of Bepkong. 200K might be on the conservative side perhaps.

jman


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## Sean K (29 July 2008)

jman2007 said:


> Quaterly Report looks fairly upbeat,
> 
> There are a decent number of assay results pending which could throw another cat amongst the pigeons, if they return positive results. This includes 8 RC holes targetting shallow mineralisation immediately east of the Kunche Resource, and some first-pass regional RAB drilling over at "Kunche East".
> 
> ...



Yeah, a few deeper holes there, need to check the angle. I assume they're at 50 degree ish. So, assume mineralisation above and below to some extent. Need to recheck. Still open in all directions. 

Needs some good news to get some market attention again. Perhaps the Bepkong JORC will do it, or some of the pending exploration results are prospective. I'm only counting on the general Kunche/Bepkong area to rate this though, anything else is a bonus.

Yes, they will need some money soon. A capital raising on the back of the JORC perhaps.

MC back to $10m with 500K @1.9 g/t JORC open pit. Let's assume 200K at Bepkong at a higher grade by the look, from surface, give them 700K at >2 g/t with an MC of $10m... Gold EV of about $14 an ounce. 

General market sentiment is killing everything.


----------



## Sean K (29 July 2008)

kennas said:


> Yes, they will need some money soon. A capital raising on the back of the JORC perhaps.



Well, perhaps not for a while yet.

Macquarie chipping in a few bucks to now hold 13% of the company.

Nice support.



> *Azumah Secures Support of Macquarie Bank as Substantial Shareholder*
> Macquarie to purchase 12,150,000 shares at 16c to raise $1.944M
> 
> Emerging Perth-based Ghana gold explorer, Azumah Resources Limited (ASX: AZM), has secured the backing of Macquarie Bank Limited (‘Macquarie’) as a substantial shareholder, today announcing a A$1.944 million share placement to accelerate the development of the Company’s 100%-owned Wa-Lawra Gold Project in Ghana.
> ...



And nice ramps from the MD:



> “Even with just the 516,000 ounce inferred and indicated Kunche gold resource, the market capitalisation of Azumah per ounce of gold resource - after subtracting its present cash - is well below that for other West African exploration companies at a similar stage in the exploration cycle.”
> 
> “With the maiden Bepkong resource estimate just weeks away, Azumah must certainly represent one of the best value junior gold explorer investments available right now,” Mr Stone continued.


----------



## jman2007 (29 July 2008)

kennas said:


> Well, perhaps not for a while yet.
> 
> Macquarie chipping in a few bucks to now hold 13% of the company.
> 
> Nice support.




Yep, came at the right time didn't it?

Always helps having someone like Mac Bank on board with a small junior. Mac probably feel they will be able to capture some of the upside over the next few weeks as the maiden Bepkong Resource is due to come out, so the timing is interesting. The MD seems to be saying and doing most of the right things atm, it's not easy to get instos or the market in general to believe in your story these days.


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## Sean K (31 July 2008)

Latest investor presentation out last night and this slide shows why I have liked this stock at the sub 15c mark, on current JORC. 

Compared to other explorers in the region, it's undervalued. 

(Who's to say the others aren't all overvalued though, or aren't going to crash...)

And this is just on current JORC. Bepkong initial JORC this month will make it even cheaper. By how much, have to wait and see.


----------



## vegemite (1 August 2008)

Merrill's gold picks, St Barbara, HudBay, Azumah
28 July 2008 
WRONG sport for winter downunder, but the batting order for Australian gold companies has been chosen by Merrill Lynch.
In what is clearly a Twenty20 team, promising new local kid Avoca and the usually well regarded Newcrest are to open, with the improving Kingsgate Consolidated, the always exciting OceanaGold and Chinaman Sino Gold at three, four and five. The erratic, but richly talented Lihir comes in at six, while the well-performed but dour Dominion misses out.
Merrill said the team was its current pick for the next 12 months, and that it was a risk adjusted view “in that it is not solely based on the upside potential but includes quality of project and also delivery upside”.

MACQUARIE had added yet another West African gold explorer to its portfolio with its $A1.94 million investment this week in Azumah Resources giving it a 13% stake in the Mark Creasy-backed junior.
Azumah has new resource estimates due in Ghana in the coming weeks to add to the 516,000 ounces already established.
Macquarie has been busy investing in this part of the world for some years, with promising explorers Perseus Mining and Gryphon Minerals among those that currently have the investment bank’s backing.


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## Miner (2 August 2008)

vegemite said:


> Merrill's gold picks, St Barbara, HudBay, Azumah
> 28 July 2008
> ”.
> 
> ...




Hi  Vegemite 

Would you please post the article from Macquaire in the ASF ? 
It will be very interesting to know their basis of recommendation and projection of prices for not just AZM but also for GRY and PRU

Regards


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## vegemite (2 August 2008)

hi miner,

that's all i have - it was a cut and paste from a news site (highgrade from memory,

cheers, v


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## Sean K (7 August 2008)

Tempted to buy a few more right now with the resource for Bepkong imminent and the sentiment to gold way so low. 

In that the price is supressed for potential earnings, even with commods tanking.

But, I've accumulated a bit now....eeeek.


----------



## Sean K (19 August 2008)

Wow, that last post of mine was a bit of a ramp. 

Perhaps I was just trying to point out the potential bump in price when this JORC comes out in case anyone wanted to do their own research and see that it was undervaled to peers.

I suppose that's the case with everything right now.

Undervalued.

eeeek!! 

Anyway, just bumping this as the Bepkong JORC is supposed to be out this month, so if they are worth their salt, they'll bring out a few extra ounces that will make them even cheaper.

Unfortunately, gold is on a down trend, the market's downtrending, Essendon is losing again, and it's raining in Quito. 

The odds are against a good result....


----------



## Sean K (26 August 2008)

Bepkong JORC out this week and I have been told that it's on schedule. MDs sometimes get it wrong of course.

Ann out, encouraging metallurgical results on Kunche:




> *Encouraging Kunche Metallurgical Results*
> 
> Overall Gold Recovery Expected To Exceed 90% With Up To 40% Recoverable By Gravity
> 
> ...




I actually have no idea if that is great, but the company is ramping it...LOL



> “The next phase of test work is already underway focused on Kunche mineralisation grading closer to the average combined indicated and inferred resource grade of 1.9g/t gold,” Mr Stone continued. “*Metallurgical test work will also be conducted on samples of primary mineralisation from the recently discovered Bepkong deposit, for which we expect to release a maiden JORC compliant resource estimate shortly*.”




My fingers are crossed for simply over 200k oz au at over 2 g/t.


----------



## jman2007 (2 September 2008)

I wonder if they'll get the Bepkong resource out this week?..

Doesn't look like the Basabli release was what the market was expecting or waiting for. Early days at this prospect, just reconnaissance drilling really, although will be interesting to see how it develops. If they do get over 200K oz from Bepkong at around 2g/t it would be great result for the company.


----------



## Sean K (2 September 2008)

jman2007 said:


> I wonder if they'll get the Bepkong resource out this week?..
> 
> Doesn't look like the Basabli release was what the market was expecting or waiting for. Early days at this prospect, just reconnaissance drilling really, although will be interesting to see how it develops. If they do get over 200K oz from Bepkong at around 2g/t it would be great result for the company.



Should be close. I was told 'on schedule' which I thought was Sep, so it's a little late. So far.

I thought there might be a little run up in the sp leading the resource, but perhaps it's still a little under the radar.

Or perhaps, no one like gold explorers right now....

Gold juniors have been well on the outer in Australia (even though TIA) for some time due to costs and a couple of high exposure failures. 

Or, because gold looks to be on a slippery slope until (if) USD fails completely...

Come on Stephen, 200K oz au >2g/t. 

Please...... LOL


----------



## Sean K (4 September 2008)

Well, I've got what I was hoping for, but POG is in the dog house, so not sure of the immediate support.

Some good other numbers regarding this deposit too. 

Any thoughts?


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## jman2007 (5 September 2008)

kennas said:


> Well, I've got what I was hoping for, but POG is in the dog house, so not sure of the immediate support.
> 
> Some good other numbers regarding this deposit too.
> 
> Any thoughts?




Well it was a decent enough release, more or less in line with what we were predicting and at a slightly higher grade. Shame about the timing though, which is nothing to do with AZM at all, merely a reflection of the latest slump in investor confidence. They couldn't really afford to delay the release it though... at least we now know where they stand with these projects, 750K oz now on the books, not bad.

jman


----------



## Sean K (5 September 2008)

jman2007 said:


> Well it was a decent enough release, more or less in line with what we were predicting and at a slightly higher grade. Shame about the timing though, which is nothing to do with AZM at all, merely a reflection of the latest slump in investor confidence. They couldn't really afford to delay the release it though... at least we now know where they stand with these projects, 750K oz now on the books, not bad.
> 
> jman



Yeah, terrible day for the release, and gold stocks just being slaughtered. Just not the place to be at the moment. I'm not sure if this correction in POG is a blip, or a very long term collapse. Has the USD hit a bottom? Is the commodity bull caput? Will any bank be handing over cash to explorers to forward their exploration and development? Well, I suppose Macquarie has an interest in keeping them going for a while. Or, is it all just overall sentiment and the bull will return at some stage and these specs will run. Aaaaah, questions, questions.....

I noted in their presentation just released that their aim of attaining 1m oz by the end of the year has been changed to just 1m oz. More drilling in Oct, but maybe not enough time to work up the 1m by New Year...Disappointing.


----------



## Sean K (8 October 2008)

One of a couple of stocks I'm still holding and still in the green with it. Just. 

Further drilling was due to start this month but I don't think their 1m oz target by the end of the year is a chance. 

MC down to around $10m again which you get 750k oz au open pit potential. 

I notice GRY come out with an ann today all cheerful about their 400k oz ish open pit and an MC of $14m or so. Have some Ni potential too, but AZM still looks cheapish on a peer comparison generally.

Just when the spec money comes back into the market, who knows. No one wants to buy! Still holding expecting gold to push to higher highs eventually and this to be a tasty takeover or partner for a major looking for a potentially low cap ex operation...


----------



## Miner (15 October 2008)

kennas said:


> One of a couple of stocks I'm still holding and still in the green with it. Just.
> 
> Further drilling was due to start this month but I don't think their 1m oz target by the end of the year is a chance.
> 
> ...




One of the directors bought 100000 shares at 11.5 cents in late Sept and today the share was selling at an unprecedented low value of 7.7 cents.

Yesterday it did not change when every Tom and Dick share showed some upward trend.

Where do you think AZM is leading to ?


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## Sean K (16 October 2008)

Miner said:


> Where do you think AZM is leading to ?



To the abyss at this rate.

There is no spec money coming in to illiquid junior explorers at the moment. And POG is in with the dog. 

Black Swan for these guys in Macquarie pulling out of the funding/uptake agreement and they are left with no cash. 

Best case may be takeover by a mid to major in the region after some near surface good grade resources.

I've factored in a total failure in this environment, and don't expect a return from here.


----------



## shag (16 October 2008)

oh damn, i didnt see that mac bank pulled out.
i bought partly due to this endorsement.
oh well, another script to forget and poke under the stairs in the hope it will do a summit gold on you.
i just hope theres allota gold under the ground there(or uranium or diamonds-like im not fussy).


----------



## Sean K (16 October 2008)

shag said:


> oh damn, i didnt see that mac bank pulled out.
> i bought partly due to this endorsement.




!!

They haven't pulled out.

Just saying that if they withdrew from the deal then it would be bad darts.

Funding could eventually come from elsewhere.

For eg, a stake by another goldie, or from YT....


----------



## jman2007 (16 October 2008)

kennas said:


> To the abyss at this rate.
> 
> There is no spec money coming in to illiquid junior explorers at the moment. And POG is in with the dog.
> 
> ...




I think they've got some good ground along the Wa Lawra belt, and some good projects, but look to be in some trouble cash wise with only $1.63M left in the bank. I think for a small company to achieve what they have in terms of proving up 750Koz of Resources in the ground is great, but it's just not the right market conditions for them at the moment. I'd give them another 12 months and then see where they're at, of course if they stumble upon an elelphant such as a 5Moz monster, then it all could change rather quickly. That's the thing about gold, it's always full of surprises. 

jman


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## Sean K (24 October 2008)

Crikey! Been raped along with the rest of the market.

I'm stuck with a pile due to the low liquidity and unwillingness to gap it down considerably. The recent low volume sell off is quite painful to watch.

Agree on the cash situ jman, but I think the Macquarie placement shores them up for a little while. Still, they'll need another backer, or raising next quarter I think. 

They were supposed to do a few things this month as per last pres in Sep, but no announcements.. 

Note the last line in 'general'. I reckon they're trying to get someone to jump into bed with them.

Current mc down to about $7m....eeeek!


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## Sean K (30 October 2008)

kennas said:


> Agree on the cash situ jman, but I think the Macquarie placement shores them up for a little while. Still, they'll need another backer, or raising next quarter I think.
> 
> They were supposed to do a few things this month as per last pres in Sep, but no announcements..



Hmmm, looks like they're effectively putting this project on care and maintenance.

What the? An exploration project on C&M? LOL

From Qtly:

*Going Forward*

In July 2008 Azumah raised $1.94M through issue of 12,150,000 new shares to Macquarie Bank Limited which became Company’s largest shareholder with a 13% interest. As at the date of this report the Company has approximately $2.1m of working capital. 

Azumah has designed drilling programmes to extend Mineral Resources at Bepkong, to investigate untested targets and anomalies in the Kunche-Bepkong area, to follow-up the encouraging results from recent drilling at the Basabli and Kuo prospects and to test several high-priority ranked soil gold anomalies throughout the 100km strike of Birimian greenstones on Azumah’s 100% owned licences. 

*However, in the present climate of exceptional volatility and uncertainty in global financial markets, Azumah is taking a very cautious and prudent approach to moving its Wa-Lawra Project forward balanced with the need to preserve its existing working capital. It is closely monitoring events in the markets before committing to any of these planned drilling programmes.*

A number of low-cost office and field based exploration initiatives are being maintained and metallurgical test-work will continue on other samples of Kunche mineralisation as well as samples of fresh Bepkong mineralisation.

Azumah has very modest overheads. Its executives and most consultants are retained on an as-and-when-required daily remuneration basis with no full-time or long-term contract commitments.

 


Why not ask me for some more money at a discount with some free attached options????


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## jman2007 (12 November 2008)

kennas said:


> Hmmm, looks like they're effectively putting this project on care and maintenance.
> 
> What the? An exploration project on C&M? LOL
> 
> ...




Yeah you're more or less right kennas,

Sugar-coated words in some ways, but basically they seem to be saying that the project is on ice for the time being.

A do find it a little odd that they didn't consider some kind of other funding option to keep exploration ticking along.

Maybe one for the bottom drawer for a while, down but certainly not out.

jman


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## Sean K (13 November 2008)

jman2007 said:


> Maybe one for the bottom drawer for a while, down but certainly not out.
> 
> jman



That's been my position for a few months now, but not the way I like to play this game. Conserving capital is the number one rule for me. Usually. Why keep money static or dripping away when there's other perfectly good money making opportunities out there. Like the casino...

Anyway, when the market turns up in 2015, I'll open up the draw. Maybe I'll get my money back. And then I'll go to the casino...


----------



## Sean K (28 November 2008)

Unfortunately for me (the only holder here it seems ) that even the general change in market sentiment can not assist AZM. Just no buyers and with good reason in this part of the cycle. Very early development project, and no cash. Luckily, no debt, so probably no administration, but just time until the market turns. 

Some desperate punter sold 2050 shares at .05 today to raise $102 to tank the sp 23%. 



I just haven't been willing to tank the price to get out, which has eventually cost me dearly. Underestimated the degree that this would fail considering it's IGV. 

Another lesson to take into the future and thrive off.


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## shag (16 February 2009)

theres been a bit more action in the last couple of days. maybe somethings afloat.
i guess we will see soon....


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## Sean K (16 February 2009)

shag said:


> theres been a bit more action in the last couple of days. maybe somethings afloat.
> i guess we will see soon....



Pretty low volume Shag. Looks to me just that the dead wood have dumped all their stock. No more desperate sellers, and now just a little risk creaping back into the market. 2020 tells be under 5c was a nice move. Oh well ...


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## Miner (17 February 2009)

kennas said:


> Pretty low volume Shag. Looks to me just that the dead wood have dumped all their stock. No more desperate sellers, and now just a little risk creaping back into the market. 2020 tells be under 5c was a nice move. Oh well ...




Hi Kennas How D

I looked into competition thread. 

Your tip at 6 cents for AZM has gained solid 27 percentage in 14 days

You did extremely well if I take the annualised return for AZM

WHy are you complaining  after an excellent trade (of course I am assuming your investment was at 5 cents) ? 

Leave the complaining rights on people like MEEEEEEEEEEEEEE


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## psychic (26 February 2009)

Thats why the share price is going up, AZM just announced that drilling has started on its gold project. Go for gold


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## psychic (26 February 2009)

I hope you are still holding your parcel of AZM shares Kennas, this drilling program might just be the ticket to a much higher share price


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## Sean K (27 February 2009)

psychic said:


> I hope you are still holding your parcel of AZM shares Kennas, this drilling program might just be the ticket to a much higher share price



I sold some and bought back some. 

Waiting for another market implosion before doing anything else at this stage.

Yes, good to see them drilling again, and the new target near Bepkong sounds interesting. Another discovery is needed to make that 1m oz au target I feel.

DRILLING COMMENCES AT BEPKONG AND KUNCHE WEST

Azumah Resources Limited (‘Azumah”) is pleased to advise that it has commenced a reverse circulation drilling programme at its Wa-Lawra Gold Project, north-west Ghana. Six holes will test for near-surface, north and south extensions to the 212,000 ounce gold Bepkong Indicated and Inferred Mineral Resource (Figure 1, Table1).

Two 100m holes are also planned to investigate a new, high-priority, north-north-west trending target 400m west of the 516,000 ounce gold Kunche Indicated and Inferred Mineral Resource.

A recent desktop review of historical geophysical datasets showed that mineralisation at Kunche is associated with ‘high chargeability and apparent resistivity responses’. The new target has similar geophysical characteristics, supporting anomalous geochemical soil samples and anomalous mineralisation in a shallow depth drill hole.


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## Sean K (3 March 2009)

AZM have picked up some new ground close by that looks prospective. Some pretty good results there that are likely to lead to some good grades perhaps. Have picked up a few prospects with the Julie target looking the most likely at this stage. About 75km east of Wa Lawra so perhaps close enough to use the same mill eventually? 

“The acquisition of Crew’s Wa Gold Project provides Azumah with additional confidence that it will achieve its next objective of delineating a 100% owned, 1,000,000 ounce, near-surface, gold resource in the region as part of its overall plan of establishing a stand-alone mining and processing operation in the north-west of Ghana,” Mr Stone said.

They're handing over 6m shares for the lisences which gives Crew 6% ish of their capital. Hope it's worth it...


AZUMAH STRENGTHENS DOMINANT POSITION IN NORTH-WEST GHANA WITH NEW GOLD ACQUISITION

COMMENCES DUE DILIGENCE DRILLING PROGRAMME

Highlights:

 Key strategic acquisition of Wa Project in north-west Ghana from
Crew Gold Corporation.
 Comprises three prospecting licences located in close proximity
to Azumah’s flagship Wa-Lawra Gold Project, further
strengthening Azumah’s dominance in the Wa region.
 Acquisition is share and royalty based, preserving Azumah’s cash
position.
 Wa Project includes several advanced-stage, drill confirmed
targets with strong potential for near-term, low-cost, near-surface
resource delineation to complement Azumah’s existing 754,300
ounce Wa-Lawra Gold Project gold resource (Table 1).
 Shallow mineralisation identified over 6km at Julie prospect, with
best intercepts including:
JUR0107 11m at 8.47g/t gold from 25m
JUR0088 19m at 3.96g/t gold from 11m
JUR0137 16m at 35.76g/t gold (trench)
JUR0158 10m at 40.61g/t gold (trench)
JUR0133 14m at 6.96g/t gold (trench)
JUR0130 9m at 13.40g/t gold (trench)
 Broader prospectivity within all three licences indicated by drilling,
trenching and geochemical sampling.
 Drilling programme commenced at Julie prospect as part of a
three month due diligence period.


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## Sean K (13 March 2009)

I'm not normally one to discuss the way a stock trades though the day, but since I've been watching this one very closely thought it interesting that it's been chased up. There's constantly been a gap in the buy sells the past few weeks and punters have been picking off the sells as opposed to sellers chasing down. Has been clear since it crossed the .06 mark. I know this because I've had buys sitting in the queue for weeks and have had to chase it myself.  

Another junior goldie to have more than doubled since the gold 'bottom'. 

I'm thinking there will be a decent bear bounce in equities soon and wonder what will happen to POG if this occurrs. It's been 'safe haven' for the past few months and gold stocks have responded. If risk starts going into the rest of the market then perhaps these things will fall off? Hope not, enjoying the run. Trade whatever happens I suppose.


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## shag (13 March 2009)

yes its been showing signs of change for a month to 6 weeks. from a dead patch to trades and small moves up till yesterday when it took off.
maybe it was you kennas going for gold.....


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## jman2007 (17 March 2009)

kennas said:


> AZM have picked up some new ground close by that looks prospective. Some pretty good results there that are likely to lead to some good grades perhaps. Have picked up a few prospects with the Julie target looking the most likely at this stage. About 75km east of Wa Lawra so perhaps close enough to use the same mill eventually?




Looks like some pretty decent ground there kennas,

Any ideas why this other mob Crew Resources and others seemingly did a lot of the donkey work and then decided to throw in the towel? On the face of it, doesn't seem like such a bad deal for AZM. It would probably be worth checking out Castle Minerals exploration results as well, as they apparantly have some ground to the west of the "Julie" prospect, fittingly called the "Julie West Gold Project". 

The AZM boys next door might be tempted to get some "black tracksuit" samples in the dead of the African night, *cough* not that I'm advocating that kind of outlandish behaviour of course 

jman


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## Sean K (31 March 2009)

jman2007 said:


> It would probably be worth checking out Castle Minerals exploration results as well, as they apparantly have some ground to the west of the "Julie" prospect, fittingly called the "Julie West Gold Project".
> 
> The AZM boys next door might be tempted to get some "black tracksuit" samples in the dead of the African night, *cough* not that I'm advocating that kind of outlandish behaviour of course
> 
> jman



Yeah, I've been following Castle. They were pointed out by JTLP some time ago I think. They came out with some good grades today. 



> New gold vein discovered at Julie West Project Rockchip sampling along an outcropping quartz vein 1.4km south of the main Julie West vein reported surface grades up to 30 g/t gold. Five RC holes were drilled over two areas along this 1500m long vein with significant results including:
> 
> 1m @ 7.47 g/t gold from 12m (JWRC 67)
> 5m @ 5.12 g/t gold from 5m (JWRC 68)
> ...




Resource calculations are underway.

I've tried to check how close they are to Julie, but it's not clear on the maps I've looked at.

Interesting connections with the companies, which was pointed out, with Michael Ivey on both boards and they share the company secretary.

Further consolidation down the track perhaps. If they combine will have quite a patch of prospective dirt.

CDT gets traded a lot! Must have billions of shares on issue!!


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## Sean K (6 April 2009)

Some good results here, especially the extension of Bepkong. Need that 1m oz au to get on the map!

Bad news is the drilling east of Kunche pulled up dirt. Was a prospective area for a new find. 

Looks like the Crew buy might add some ounces down the track...


*FURTHER DRILLING SUCCESS FOR AZUMAH *

BEPKONG MINERALISATION EXTENDED

 11m at 5.39g/t gold from 1m (BRC087)
 25m at 1.75g/t gold from 1m (BRC088)
Incl. 8m at 3.14g/t gold from 18m
 5m at 3.58g/t gold from 6m (BRC089)

JULIE MINERALISATION SUBSTANTIATED

 10m at 3.39g/t gold from 34m (AJRC001)
Incl. 1m at 11.30g/t gold from 36m
 11m at 4.71g/t gold from 12m (AJRC005)
Incl. 6m at 6.02g/t gold from 16m and
1m at 10.78g/t gold from 27m
 Up to 15.2g/t gold from rock chip sampling
at Collete, Kjersti and Josephine prospects.


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## Sean K (6 April 2009)

And still looks undervalued to peers.

I was just checking GRY as a likely peer and this is what they have:

Banfora Gold Project, West Africa
Maiden Inferred Resource
6.1mt @ 2.1g/t for 410,000oz gold
Less than 100m depth & open

With some recent good intersection to expand the resource. How much, don't know.

They have 116m on issue at .16 = $18.5m MC


AZM have 750k oz au, expanding
Open pit, around 2 g/t

94m on issue at .10 = $9.4m MC


And while we're at it, Castle - CDT.

They have less than 100k oz au
Some nice intersections through exploration

53m on issue at .15 = $7.95m


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## shag (9 April 2009)

any one know of any annoucements or such comming out soon, to kick this one in the ar-e....
also any specualtion on the tennants they have, ie is it good ground for upgrades etc, i realise its all only a guess, even untill u haul it out and put the stuff into bars.
i cant see too many gold bears out there, likely inflation, a shortage of it, and its use as a monetary stabiliser.

give dml a look kennas, they have silver in their copper. and silver is as good as gold. a bit overdone presntly tho. very illiquid.
cu first out of the gates too.....
in 3-5 or so years we are going to have another hell of a resource boom. esp oil n gas.


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## Sean K (9 April 2009)

Will check DML shag, cheers.

I am willing to put $1.00 on the table that AZM and CDT merge in the next 12 months. Maybe even $2.00!!

It just seems a no brainer for them to now combiine to form synagies in personnel and resources to form quite a significant explorer/developer with some clout. Could be strong enough to be predators instead of the likely prey in the comming months.

Upside for AZM is the next upgrade for Bepkong, and any discovery along the greenstone...

At the same time they should have rigs drilling the ex Crew targets and should firm up an initial resource at Julia in the coming months. 

Short term negatives are only the POG which may see some weakness as equities go for a run, but when they fall over again, and the USD goes pop, POG should be back in favour.


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## Miner (9 April 2009)

kennas said:


> Will check DML shag, cheers.
> 
> I am willing to put $1.00 on the table that AZM and CDT merge in the next 12 months. Maybe even $2.00!!
> 
> ...




Hi Kennas

I am not sure if Peru has Dollar like Oz dollar and their dollars are stronger than Aussie Dollar. Mate if Peruian currency is like the one in Indonesian Rupiah then you have to put millions of them just not one or two $.

Have a Good Easter and be Safe


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## jman2007 (9 April 2009)

kennas said:


> I am willing to put $1.00 on the table that AZM and CDT merge in the next 12 months. Maybe even $2.00!!
> 
> It just seems a no brainer for them to now combiine to form synagies in personnel and resources to form quite a significant explorer/developer with some clout. Could be strong enough to be predators instead of the likely prey in the comming months.




Now that _is_ an interesting proposition....

I see your evenings spent lying awake in bed have been put to good use kennas, a merger would be a devilishly diabolical outcome! :

It looks like CDT have established a predictable and consistent orientation for those gold-bearing qtz veins. Looks ready made for a 'rape and pillage' affair (
miner talk), in that it would make open cut mining relatively straightforward because there would not the added complexity of major folding or faulting to contend with, not that I'm aware of so far anyway. 

Fair to say that the vein(s) look to thin out at depth though, based on the CDT sections I have looked at.

jman


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## Sean K (14 April 2009)

I think I've just worked out why 300K oz au is a key part of the Crew purchase.

Checking Crews website and checking their assessment of the Julie deposit, they say this:

The Julie target is an East-West trending zone, with a strike length of about 6 km and 45 degrees dip to the north, with shear-hosted gold mineralization along a granite/basalt contact. A 100 m x 100 m soil geochemical sampling and trenching program exposed a shear zone of 80-100 metres in width with mineralized lenses of 5 to 20 metres in width. *A subsequent 3,600 metre drill program allowed the outlining of an inferred resource of around 300,000 oz of gold recognized to 30 metres in depth.* Preliminary testing has shown that the ore is not refractory and responds well to conventional leaching. Twelve additional trenches and a complementary geochemical survey’s have confirmed the continuity of the mineralization in the apparently richer, eastern segment and outlined a 1.5 km further extension towards the west. The structure appears to be open along the strike and down dip. 


I wonder why AZM didn't announce that?

If this is the case, surely they just put a couple of drill holes in there now to establish previous drilling data and toss out a resource estimate?

There's your 1m oz au!

Start digging with 100K a year output! Done!!


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## Sean K (27 April 2009)

Just to add some more info on the Julie deposit, I was looking more closely at previous drilling compared to what AZM have done and I'm in mixed minds.

Some of the AZM holes confirm the extent of mineralisation to the east. But to the west they pulled up dirt in areas that were supposed to be well mineralised. So, is the gold there or not?

A more positive note is the grades that Crew had established in a few of the holes and trenches are quite outstanding. Quite a few returns above 10 g/t and one to the far east of 10m @ 40 g/t. That is quite impressive. If AZM come back with a couple of assays like that then it'll add much more weight to the potential of a standalone gold operation. 

Also rechecking the Bepkong results and it looks like aquite a few more ounces will be added to this deposit. Possibly even enough to take them over the 1m oz au mark in the Kunche/Bepkong camp alone.  

Still languishing down under 10c with mc under 10m.

If they deliniate 1m oz, that's $10 an ounce, ok grades, open pit...


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## Sean K (9 May 2009)

AZM has recovered from 4c low to 13c intraday yesty. Happy with that. 

Fingers crossed gold keeps steady and markets don't implode again. Althought that might just be a great opportunity to buy more gold with all the paper being printed. 

Good luck, kennas.

Cheers mate.


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## Sean K (19 May 2009)

Geesh, capital raising, and a whopper. Half their market cap! Who does that!! 

Unfortunately, not cheap shares for you kennas, it's to instos and sophisicates.... 

Well, at least they are financial viable for some time....

And Macquarie now own 15%. 

A*ZUMAH TO RAISE $5.25 MILLION TO RAPIDLY ADVANCE GHANA GOLD PROJECTS*

 Capital raising of $5.25 million from institutional and sophisticated
investors.
 Placement generated strong interest and was heavily oversubscribed.
 Funds will be used to rapidly advance exploration, resource definition and project development of Azumah’s gold projects in northwest Ghana. 

Azumah Resources Ltd ( ASX: AZM) is pleased to announce that Perth-based Blackswan Equities has agreed to place, to local and international institutional and sophisticated investors, 58.33 million fully paid ordinary shares at $0.09 per share to raise $5.25 million.


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## Sean K (1 June 2009)

AZM have ann'd that they're proceeding with the Crew buy. I thought that it was subject to sertain conditions. Like 300K oz au confirmed.  The first pass confirmatory drilling didn't seem to confirm that to me.  

Anyways, looks like it has potential to do it still and is 75ks from their gold camp. So, pretty easy to just put the ore on pack mules and march it across I suppose to whatever mill they conjour up out of the desert.

Chart wise, it's trippled since the bottom, like so many others. 
I'm copping severe lashings from Harry at the moment.


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## Sean K (5 June 2009)

kennas said:


> AZM have ann'd that they're proceeding with the Crew buy. I thought that it was subject to sertain conditions. Like 300K oz au confirmed.



Hi kennas, how's things on that holiday? All good? 

Looking back at the anns it's not confirming 300k initially, you goose! But, after 2 years. That's some time frame..


_Azumah will also issue up to a further 6,000,000 new ordinary Azumah shares to Crew if, *within two years *of the execution of the Sale and Purchase Agreement, a JORC Code compliant mineral resource of up to 300,000 ounces of gold is delineated between surface and 100m depth within the three licences being acquired. A pro rata lesser number of shares will be issued if a resource of less than 300,000 ounces of gold is defined.

A royalty of 1% of gross receipts from the sale of any gold produced from the Crew licences exceeding an initial 300,000 ounces of gold will also be payable to Crew._

So, they better shore up those ounces!!!

Looking forward to new results, fingers crossed they keep hitting those high grade intersections near surface.


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## Sean K (18 June 2009)

kennas said:


> Hi kennas, how's things on that holiday? All good?



 Yeah, holiday was great mate. Thanks for asking!

AZM stalled below 15c but holding up OK for the minute. Not much volume to speak of. Probably due for some more results soon. zzzzzzz

One thing of interest is a mention of Azumah in the news as a possible takeover target by Lihir. First time I've seen it mentioned in these terms before. At least someone else is watching it as opposed to just you and me. Cheers.



State One Stockbroking resource analyst Sam Berridge told AAP that Lihir would likely meet its 2009 production goal due to the outperformance of its Bonikro mine.

Mr Berridge said Lihir's plans to expand Bonikro through near-mine exploration could drive its long-term, 1.5Moz per annum production target.

Lihir managing director Arthur Hood announced the plan last month.

"They've produced more gold there (Bonikro) than they were expecting," Mr Berridge said.

"Longer term around Bonikro, they've been getting encouraging results to the south of the mine.

"So I think the potential for resource expansion and eventually reserve expansion there is quite high.

"The exploration upside for their west African projects will probably be an area that they will look to for continued growth, both organically by exploration and via acquisition."

*Mr Berridge said west Africa-focused companies with low-cost mining proposals including Perseus Mining Ltd, Adamus Resources Ltd and Azumah Resources Ltd were possible targets.*


http://news.ninemsn.com.au/business/826242/lihir-gold-to-write-down-mine-value


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## Sean K (22 June 2009)

kennas said:


> Yeah, holiday was great mate. Thanks for asking!



Hi kennas, I see you've changed your tiger. I prefer this one to the last. Nice beast!

Been a bit quiet on the AZM front, what are they up to? Maybe they're all on holiday putting the recent placement to use?

Perhaps they're finalising some drilling results from May?

*



Future Work

Activities planned during the June 2009 Quarter include:

• commencing a more extensive drilling programme at the Wa-Lawra Gold Project in mid-May that will focus at Bepkong on extending near-surface resources along strike and high-grade zones to greater depth;
• drilling other quality targets in the Kunche-Bepkong mineralised camp area;
• extending maiden resources at the Yagha and Atikpi prospects; and
• testing a series of new soil geochemistry defined targets.

Additional drilling and rock chip sampling is also planned.
		
Click to expand...


*June quarter ends at the end of June doesn't it? Like next week?

Fingers crossed they pull up some of the yellow metal because the buy/sell spread looks disasterous at the present.

Good luck!!


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## Sean K (29 June 2009)

kennas said:


> Hi kennas, I see you've changed your tiger. I prefer this one to the last. Nice beast!



Hi Old Mate, cheers. Like the new one. Thanks!

Ann out on some results that look ok but haven't delved into it enough yet. Looks like they will get to the 1m oz au mark soon, but this was supposed to happen *last year*!!! 


*HIGH-GRADE GOLD INTERSECTIONS AT COLLETTE AND JULIE*

• Shallow, high-grade gold intersections at Collette prospect
o Includes 3m at 45.90g/t gold
• Wide mineralised zones confirm continuity at Julie prospect
• Drilling to target extensions to Collette and Julie prospects
• Maiden mineral resource at new Wa Project targeted for end-2009

Better intercepts include:
• 12m at 13.13g/t gold from 24m - ACORC004 - Collette
incl 3m at 45.90g/t gold from 24m
• 1m at 16.20g/t gold from 60m – ACORC002 - Collette
• 13m at 2.78g/t gold from 10m – AJRC027 - Julie
• 2m at 8.96g/t gold from 21m - AJRC028 - Julie
• 3m at 5.03g/t gold from 52m – AJRC032 – Julie

“These results, combined with the discovery of new mineralised quartz veins at Collette, reinforce our view as to the excellent prospectivity of the recently acquired Wa Project where we are targeting the delineation of a maiden mineral resource by the end of 2009” Azumah Executive Chairman, Mr Stephen Stone commented.


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## shag (29 June 2009)

at least it wasnt leaked, as the only trade before this was a pidly partorder of mine and it wasnt going far friday.


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## Sean K (30 June 2009)

shag said:


> at least it wasnt leaked, as the only trade before this was a pidly partorder of mine and it wasnt going far friday.



I'm sitting back waiting for a market pullback before committing any more at the moment. Having said that, a significant run in POG and this breaking through 15c will make me re-evaluate. 

Just going through their presentation they put out with the above mentioned announcement and they have pointed out their position in the W African market, but I have some doubts on the figures because I know PRU have more shares on issue and more gold. Like, 2m oz au more!

Waiting for CDT and AZM to merge. Or, perhaps they like being on each others boards to collect more fees?

On the Julia prospect they state: 'Immediate opportunity to delineate maiden resource at Julie' which is underlined and bolded, so very serious stuff!! They have over 1000m of strike with intersections generally 2-5m at 1-2g/t but some higher ones like 10-15m at 5-8 g/t so they could firm up a couple of hundred thousand grams maybe, at a pluck. Expect a maiden resource I suppose...

Collette is very very interesting. A couple of outstanding hits there, and it could turn into quite a few ounces also. Needs some follow up to see the extent of the widths and depth. Have circled the announced intersections. *3m @ 45g/t!!* They also had 1m @ 70g/t which wasn't announced for some reason.

Seems pretty positive for them to reach that 1m oz mark. And with their success in drilling, fingers crossed they continue to find decent deposits close to Kunche where any mill will probably be established. 

Their stated program looks like we'll see a few drill results filter through in July.

Hey, PRU! Hey LGL!! Look over here! Look at all this undeveloped gold sitting at the surface!! 

Cripes, I was about to say surprised it didn't attract some attention yesterday but didn't realise the spike up to 17c. eeeeek. Has done alright since the 'bottom'. 

Good luck kennas!! Cheers.


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## jman2007 (1 July 2009)

These guys seem to travelling along quite nicely

Yeah I also noticed the 'slightly' out-of-date figures they were using for their peer comparison in the presentation. : The other unusual aspect of the drilling results release was the description of their tenure as being "geologically fertile", I know what they mean, but it's an odd way to put it!

I really hope they manage to tie something together at Julie, and a couple of those Collette hits are damn impressive too. I'd like to see some more cross sections tbh, as it is difficult to draw too many conclusions from a plan view although Julie "East" looks to be shaping up as the more prospective/advanced project at this stage.

We have a very significant shear zone running through some of our tenure in the Goldfields too. We have found that very large sections of the shear along its length (strike length) are indeed mineralised with gold, but in sub-economic quantities. Generally, things like cross cutting faults or dilational jogs and bends in these types of shear structures will help in focussing the mineralising fluids and result in the gold being precipitated, hopefully giving you a nice little gold deposit.

Lets hope that the Julie shear doesn't turn into another "also ran", but it looks quite encouraging at this stage!

Don't hold this one, yet


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## Sean K (1 July 2009)

Yeah, Julie 'East' looks the most promising. Some outstanding historical drilling from Crew in that area with quite a few of 10m @ 10g/t plus. One of 10m @ 40 g/t, another at 32 g/t. Fingers crossed AZM can pull up a few like that.


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## Sean K (8 July 2009)

Have to laugh at the broker/bot trading that goes on during these times.

First trade today 84 shares @ 11c for $9.24 consideration, (less brokerage) to push the price down 4%. 

Poor punters out there will be crapping themselves. Sell, sell, sell. LOL


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## Miner (8 July 2009)

kennas said:


> Have to laugh at the broker/bot trading that goes on during these times.
> 
> First trade today 84 shares @ 11c for $9.24 consideration, (less brokerage) to push the price down 4%.
> 
> Poor punters out there will be crapping themselves. Sell, sell, sell. LOL




thanks Kennas for giving this inside on AZM.
I am wondering if Commsec has a minimum sell or purchase criterion of $500 how could another broker makes a transaction of $9.24 ? Should not ASX has some sort of lower value for transaction ? Of course Commsec sells any value plus brokerage if that is the last parcel with the seller. In a way Commsec will accept a sell order for one share @1 cents if that is the left over in portfolio.

I  was frustrated to see  it dived down at 11 cents until reading your post. Thanks a lot.

I however noticed there were two transactions today (presumably one was done after you posted)  so far .

One was with 11 cents for $9.24 (no of shares 84) and the second one was for 12 cents (no of shares 9917) 

02:02:02 PM 0.120 *9,833 1,179.96   *
10:05:12 AM 0.110 84 9.24 

12 0.5 4.55% 11.5 12 11 12 11 $1,189 9,917


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## Sean K (10 July 2009)

Nice to be noticed in the news. Just need some investors to actually buy some shares in this puppy..


*Gold rush: Ghana in spotlight*
THE DIRT: Robin Bromby | July 07, 2009 
Article from:  The Australian 

IT'S not quite Bendigo in the 1850s or the Klondike in 1897, but Ghana seems the nearest we've got these days to a red blooded gold rush.

The fact that separates Ghana today from the gold rushes of the past is that, of course, the West African country is already an established producer of the yellow metal. But there is enormous exploration remaining -- like in much of West Africa. 

The pace is really picking up there -- and, fortunately, Australian companies are in the vanguard of the charge. 

The leader of the Australian pack in Ghana is Perseus Mining with more than 5m ounces of gold and plenty of money in the bank. 

We have just seen Azumah Resources report some spectacular drilling results from its Wa project in Ghana, including an intersection of 12m at 13.13 grams/tonne, with 3m of that assaying at 45.9g/t, or 1.50z a tonne. 

Blackswan Equities’ latest note on AZM is headed: “Azumah -- Potential to punch above its weight?” It puts a price target at between 17c and 28.5c a share. 

Azumah’s project lies in the northwestern corner of Ghana running up to the border with Burkina Faso. South of its Wa project lies another gold play -- also, confusingly, called Wa -- owned by Perth-based Castle Minerals, a company that has 8000sq km and which, so far, has discovered a virgin high grade vein called Julie West with 400,000 tonnes at 4.5g/t in the 50m immediately below surface. Further details will be available in CDT’s quarterly later this month.


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## Sean K (14 July 2009)

AZM looking like a turkey on the long term chart. A turkey. IPOd at 20c and went to 40, before a constant run down to 4c, and now hovering about 10. I wonder what it is that punters don't like? Maybe because it's outside the SW Ghana sweet spot where all the majors are playing. Maybe there's lack of infrastructure and any capex is going to be a killer. There's no producing mines nearby that I know of where excess mil capacity could be used so that's going to be one hell of a committment and dilution eventually. Even if they get to development. Maybe it's the ex Croesus players, who seem to be managing to keep CDTs market cap under lock and key as well. They've convinced Macquarie to invest so they must be able to deliver a good powerpoint presentation. I'm troubled by the lack of support. Gotta be a reason. Half the mc as GRY with the practically the same resource base, and prospects.


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## Miner (14 July 2009)

kennas said:


> AZM looking like a turkey on the long term chart. A turkey. IPOd at 20c and went to 40, before a constant run down to 4c, and now hovering about 10. I wonder what it is that punters don't like? Maybe because it's outside the SW Ghana sweet spot where all the majors are playing. Maybe there's lack of infrastructure and any capex is going to be a killer. There's no producing mines nearby that I know of where excess mil capacity could be used so that's going to be one hell of a committment and dilution eventually. Even if they get to development. Maybe it's the ex Croesus players, who seem to be managing to keep CDTs market cap under lock and key as well. They've convinced Macquarie to invest so they must be able to deliver a good powerpoint presentation. I'm troubled by the lack of support. Gotta be a reason. Half the mc as GRY with the practically the same resource base, and prospects.




Me confused too. I put a buy at 10.5 cents thinking it will never come and market was so upbeat. I was shocked to see my buy order was executed. Today price dropped on a good day what happens to AZM tomorrow


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## jman2007 (14 July 2009)

This Blackswan Equities broker report from their website has some useful information. It looks like the author of the report actually went and visted the majority of their prospects, and included several interesting photos in the report:

http://www.azumahresources.com.au/wp-content/uploads/2009/07/AZM_Blackswan_240609.pdf

The author of the report obviously knows a bit a about geology (probably a former Geo himself?), and it shouldn't be understated that Bepkong was a "blind" discovery -meaning that the mineralisation has no surface expression. But the point is, that Azumah's approach is obviously the right one for the area - so there is a fairly reasonable chance of future discoveries imo (their land holding is fairly significant right?).

The infrastructure, or lack of is an interesting point. The regional center of Wa has about 50,000 people, so it's not exactly just a few huts sitting on the side of the road. Maybe it's partly to do with Azumah not being in the "fashionable" part of the greenstone belt? If they find another 'hidden' 500Koz deposit though, that'll do wonders for their profile.


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## Sean K (15 July 2009)

jman2007 said:


> This Blackswan Equities broker report from their website has some useful information.



Thanks jman, I hadn't noticed that one. Nice to see some photos of the place and more detailed info on the projects although not too much more to what we've seen. 

As a valuation, the only thing we can do is a peer comparison, which Tony Lofthouse, the analyst here, has done. We've seen these sorts of comparisons elsewhere but it just confirms again in my mind that this should be revalued at some point, to be more in line with the market. 

His comments regarding valuations by peer comparison in West Africa and the chart below:

_Taken alone these data suggest that Azumah does not receive the same level of market recognition as many other companies active in West Africa.

Based on the range of valuations ascribed by the market to companies with exploration and/or production interests in West Africa, combined with Azumah’s extensive holding of prospective target lithologies and structural settings; our subjective assessment of the effectiveness of the technical programs the company has carried out to date and plans for the next six to twelve months, we consider it probable that, within that timeframe, Azumah will increase its resource base to between 1.0Moz and 1.5Moz.

Market capitalisations ranges between A$15 and A$160 per resource ounce for companies with up to 1,500,000 ounces of resource. A reasonably common figure appears to be in the order of A$40 per ounce once a company reaches the one million ounce level.

Assigning 90% probability that AZM will achieve 1,000,000 ounces and 50% probability of the extra 500,000 ounces; plus a 75% probability that the market would uplift its assessment to A$40/oz at 1.0Moz and 90% uplift probability if 1.5Moz is reached, gives a basis for a valuation range.

Assuming 158M shares after the Crew acquisition is finalised, and using the subjective probabilities outlined above, we estimate a share price target range as follows:

At announcement of resource upgrade to 1,000,000 ounces:
(1,000,000 * 90%) at (A$40/oz * 75%) = 900,000 * A$30 = A$27.0M
Price per share on 158M fpo = A$27 / 158 = A$0.170

At announcement of resource upgrade to 1,500,000 ounces:
(1,000,000 + (500,000 * 50%)) at (A$40/oz * 90%) = 1,250,000 * A$36 = A$45.0M

Price per share on 158M fpo = A$45 / 158 = A$0.285

If market values 1,500,000 ounces at A$40/oz, valuation rises to A$60M = A$0.38 ps._

This is pretty much how I've been plucking price targets - based on JORCs and MCs/EVs, so I'm happy with it. 

Still confounding that it's half GRYs mc.

And this chart, once again, shows PRU to be undervalued compared to others at their stage. And the figure should look even better as they 7m oz au, not the 5 mentioned here.


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## shag (15 July 2009)

Miner said:


> Me confused too. I put a buy at 10.5 cents thinking it will never come and market was so upbeat. I was shocked to see my buy order was executed. Today price dropped on a good day what happens to AZM tomorrow



i was in exactly the same boat, 10.5, top of list, and forgotten.
appologies for post yest, a bit pragmatic/callous.
someone was dumping/offloading stock.


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## Miner (15 July 2009)

shag said:


> i was in exactly the same boat, 10.5, top of list, and forgotten.
> appologies for post yest, a bit pragmatic/callous.
> someone was dumping/offloading stock.




Thanks Shag and no worry.

I think both Kennas and Jman are very bullish on AZM and they have the ears right on the ground.

So let us enjoy the 10.5 cents price for some times considering that will be the ground floor for the price.


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## Sean K (15 July 2009)

Miner said:


> Thanks Shag and no worry.
> 
> I think both Kennas and Jman are very bullish on AZM and they have the ears right on the ground.
> 
> So let us enjoy the 10.5 cents price for some times considering that will be the ground floor for the price.



I'm more curious than bullish. 

Been checking GRY in more detail today and perhaps there's a reason they have double the MC. Looks pretty good. 

My interest here is that it's potentially undervalued, that's about it. No idea if they'll ever get to mine it. I'll be taking some money out when I think it's fairly valued. 

Good luck!


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## Sean K (30 July 2009)

Todays ann was titled:

Further Drilling Success.

I suppose they have hit some gold, but not very inspiring for me.

I want 100m@10g/t from surface thanks!

I suppose they are finding that the gold zone trend line continues and they may add incremental ounces, but it's currently not looking like multi million ounce potential. Just a million or so. Need another big find to be put on the map I think. 


*DRILLING CONTINUES TO ENHANCE WA GOLD PROJECT, GHANA*

Results reinforce scope to expand existing 754,000oz gold JORC Indicated and Inferred mineral resource

• 29m at 4.02g/t gold from 6m intersected in Kunche oxide zone
• 3m at 1.33g/t gold from 16m confirms mineralisation at new Bepkong North target
• Shallow, high-grade mineralisation up to 1m at 7.78g/t gold from 3m intersected at new Kunche West target
• Up to 4.63g/t gold returned by rock chips from recently identified quartz veins located south of Bepkong


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## Sean K (4 August 2009)

AZM struggling while the market runs.

Troubling.

170m fully diluted @.10c = $17m MC 
Cash $6m = $11m EV.

750k ounces = $14 an ounce.

This is going to be upgraded this year with potential for 1m oz au. 

I've read $30 an ounce is market average for explorers in W Africa, but the analyst above puts $40 an ounce on companies with over 1m oz au. 

Check their numbers above for the rough valuation.

It's undervalued, or it's a turkey.


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## Sean K (10 August 2009)

Looks like all results in from the last drilling and we need to wait till the Sept drilling campaign is over to get some more results. They should be put together to establish the first JORC for the Julie prospect and add ounces at Bepkong and Kunche. So, a bit of a wait for any news to give them a catalyst for re-rating. 

29 June ann:



> A major, multi-rig drilling campaign is planned to commence at the Wa Project in late September 2009 after the cessation of seasonal rains. It will focus on the Julie and Collette prospects where there is a good opportunity to define near-surface mineral resources complimentary to the existing 754,000 ounce gold mineral resource defined at the Wa-Lawra Gold Project, 65km to the north-west.




Their overall aim is 1-2m oz to underpin a stand alone operation. The 1m looks a shoe-in but not sure about 2m. They'll need another discovery I think.

Qtly last week:

*JUNE 2009 QUARTERLY OPERATIONS REPORT WA GOLD PROJECT*

 Intersected high-grade mineralisation at Collette and Julie
 Identified new mineralised zones at Bepkong North, Bepkong South and
Kunche West
 Commenced open pit optimisation and scoping studies
 Planning resource extension, new resource delineation and high-priority
target drilling campaigns commencing in September Corporate
 Raised $5.25 million
 $6.3 million cash (as of date of this report)
 Completed acquisition of 100% interest in Crew Gold Wa Project

The new resource estimate for later this year should include Julie (historic 300k non JORC) Kunche East, extension to Bepkong, and perhaps (depending on drilling success) Bepkong South and North. Pretty early stages there though. Out of left field might be the Collette prospect which returned the amzing grades that cause the spike a few weeks ago. Included 1m @ 70g/t as part of 3m @ 43 g/t. Hopefully that is extended...

SP back down to the 10c ish level, looks pretty ordinary. 

EV of around $10m looks pretty ordinary.

Could end up an also-ran if they don't get this JORC upgraded to over 1m by the end of the year.


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## Sean K (21 August 2009)

Prelim Mining Study out. That's quick. 

Initial cash costs look pretty high to me, and I am sure they will increase over time, as they always do. Under US$500 is OK I suppose. 

Positive out of this is that it's on the previous resource and does not include any of the recent drilling or adding in what they come out with at Julie, which is good grade and shallow and will be able to be trucked to the Kunche/Bepkong Camp Mill.

No capital cost estimates for the 1m tn mill. That could come in at the operating surplus! 

Need another decent discovery I feel, or they're looking marginal. 


*PRELIMINARY MINING STUDIES INDICATE ROBUST OPERATING MARGINS FOR WA GOLD PROJECT, GHANA*

Mineral Resources Approaching Critical Mass for Development

 Operating surplus of approximately A$138 million (US$112 million) generated from Kunche and Bepkong resources (1)
 292,000oz of gold recoverable at cash cost of A$593/oz (US$483/oz)
 Forecast production of 4.5 million tonnes at 2.24g/t gold
 Low life-of-mine strip ratio of 4.2 : 1
 Scoping Studies underway
 Substantial drilling programme targeting additional gold resources to commence next month


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## shag (21 August 2009)

i agree about the costs seemingly looking costly. like its africa and to me its relatively easy to set up yr process plants nowadays. like u buy most of it off of the shelf.
a truck 'n digger or two, yr cyanide plant and a few hired guns, which must b in oversupply in africa...or maybe hire a few tali's, they will be out of work soon hopefully. good explosive skills for doubling up as mining staff too....


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## Sean K (4 September 2009)

shag said:


> i agree about the costs seemingly looking costly. like its africa and to me its relatively easy to set up yr process plants nowadays. like u buy most of it off of the shelf.
> a truck 'n digger or two, yr cyanide plant and a few hired guns, which must b in oversupply in africa...or maybe hire a few tali's, they will be out of work soon hopefully. good explosive skills for doubling up as mining staff too....



Yes, Opex looks expensive, no explation why. Might need to get on the phone for an answer. It's open pit to just over 100m, how hard can that be? 

They really need another discovery close to the main camp IMO, or the Julie/Collette prospects need to come in at well over 300k oz au perhaps. 

Been some unusual volume the past week, but maybe that's just POG running. 

Have taken this chart off their presentation from yesterday which makes them look cheap to the others, still. Makes GRY look bloody expensive too.

That either means one of a few things:

1. AZM is overlooked and undervalued.
2. The market doesn't think AZM will shore up too many more ounces.
3. GRY is overvalued.
4. The market expects GRY to find significantly more ounces.
5. A combination of the above.

Roll your dice.


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## ands (4 September 2009)

What are they referring to when they say 'recoverable' (why isn't it all recoverable?)? Why is their such a great difference between the JORC oz and the oz's recoverable? Cheers.


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## Sean K (4 September 2009)

ands said:


> What are they referring to when they say 'recoverable' (why isn't it all recoverable?)? Why is their such a great difference between the JORC oz and the oz's recoverable? Cheers.



There does seem to be a very bit difference. The basis of it is that there will be many inferred ounces outside the pit design and they will then only recover 90% or so of the contained gold in the pit just due to the milling process. This is the situation for any gold deposit. So, what they really need to do is get to the stage of having close to 1m recoverable probably. Long way to go. As I said, I think they need another discovery.


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## shag (5 September 2009)

thanks mate
i was waiting for a comment post its slight sp signs of life this week
could just be that affro hole diggers pissup this week
presumably costing us tangible buks.
cheers and enjoy yr holiday again....
ps to get gold out, its usually a bond au to cn, then seperate and use carbon to get the au on its own
obviously the higher the design recovery rate means more dosh/costs. just a simple b/c ratio clac.
this also applies to mining/diggin the stuff up obviously.


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## ands (7 September 2009)

Could this be running on the back of a strong gold price, currently $994.05. Continues to post higher highs and higher lows over the last week with better volume.


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## Sean K (7 September 2009)

ands said:


> Could this be running on the back of a strong gold price, currently $994.05. Continues to post higher highs and higher lows over the last week with better volume.



Can only be POG, as they don't start a new drilling campaign until the end of the wet season. 

Or, corporate interest.

After the average pre- pre- feasability study, I say POG run up.


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## Sean K (11 September 2009)

Quite an increase in volume the past couple of months when there was obviously no news coming up. Probably just POG related, but couldn't discount some corporate action in the future. Maybe someone taking a position? Pure speculation of course, although AZM has always stated that they would be looking for a partner down the track to take the project to production.


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## Sean K (18 September 2009)

Still unusual volume happening on AZM when they aren't doing anything and on the back of what looked to be a poor pre-pre-feasability study. Fundamentally still undervalued on the EV to ounces scale and trailing the likes of GRY terribly, who are running well ahead of the pack now. Can't ignore the price and volume though. On the long term chart coming up to the great wall of China between 15 and 20c. A sort of inverse H&S that if broken through might help, but on no news? They won't even be getting drilling results till at least towards the end on October.


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## Sean K (14 October 2009)

On the update/news front, zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

They were supposed to start a new drilling campaign around the end of Sep, but have failed to inform us if they did, or why they didn't and when they will. Crap effort really. How hard is it to keep the market informed!!! 

On the chart front, has gone as any gold stock should the past few weeks, ie UP. Currently hitting 20c which is the Great Wall! and I doubt will be penatrated without a legion of Jason Bournes leading the charge. I wonder if I give Mat Damon a call he will help out?

Anyway, even though there is a ton of volume supporting the climb, I see this halting around here unless a couple of things occur.

1. Gold keeps running way past $1100
2. AZM announce a Julie JORC of over 300k
3. They actually start drilling again with some rampy comments
4. Someone makes an offer
5. Jason Bourne takes down the Great Wall.

H&S still in play.


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## jman2007 (14 October 2009)

Wow incredible turn of events here,

Would have been a magnificent ride from 10.5-11c. Followers of this stock have unearthed a little gem here, not a big player in the region by any means but West Africa is THE World Hot Spot for gold discoveries at present.


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## shag (15 October 2009)

hi guys
plenty of volume still and post 20 presently.
one thing azm taught me was to jump onboard these west african miners, and not loose out by chasing them up.
i wasted month/s trying to fish out sellers at 8/9c.
it would just about pay to visit the place and get the word on the ground.
tho i remember fat profits came back from one of their african junkets and issued a part sell on a certain east african miner, only for it to near double again soon after due to resource upgrades.
cheers


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## Sean K (16 October 2009)

Just poked it's head through 20c, but with gold coming off a bit might be short lived.

BGF recently did a tour of the West Africans and produced a research note. Detail on AZM:

Azumah Resources (AZM) BGF Valuation $0.29

First Prodʼn 2012, Scoping Completed, Pre-feas. Q2 2010

• At first glance one might think that AZM is smaller play
than the others, but there is nothing in the geology to
suggest that it wonʼt have 1-2 mill. oz as a minimum.

• The decision to conduct a scoping, and now a prefeasibility
study, at an early stage should be seen as a
measure of the cautious nature of the management. Some
companies run by geologists would rather drill on
indefinitely and worry about project assessment when it is
fully drilled out. Others, like AZM, appreciate that constant
exploration can be very dilutionary on shareholders, so it
would like to consider the options of a more modest
production rate initially, growing the company out of
positive cash flow. It is a matter of philosophy.

• It is notable that AZM has not achieved much traction in
the market place, leaving its shares selling at half half the
price the project suggests they should be selling at. This
may be attributed to a lesser emphasis on stock promotion
than with some other companies.

• There has also been a concern that AZM might enter into
a dilutionary merger with Castle Minerals, which shares a
common director and some common foundation
shareholders. We understand this idea has been knocked
on the head. Once this has been fully understood by the
market, we would expect a re-rating upwards.

• Another perceived weakness has been the minimalist
management team. We understand that there will be board
and management appointments soon that will address
these concerns, broadening the skill sets available.

Interestingly, all the companies have valuations in the $60-70/oz range, with the exception of Azumah, which is only $32/oz. We can see no objective reason for such a discount continuing.

(note the author of the document owns AZM)


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## Sean K (20 October 2009)

kennas said:


> Just poked it's head through 20c, but with gold coming off a bit might be short lived.



Looks like it's finally getting a re-rating. Going to open up at about 27c which is very unusual. Going to reach that H&S target mentioned earlier. Especially when they aren't even digging holes at the moment. I'm not sure we can blame the BGF report. Maybe. And POG..

Taking profits at 15 cents looks to have been a cunning move. Nice one kennas.


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## swm79 (20 October 2009)

This was reported in The Australian's "Pure Speculation" section yesterday... might have something to add to the BGF reports kenna

african goldies getting a lot of the spotlight recently



> Gold run in Africa
> 
> WHICH brings us to a story we have been harping on about -- gold in West Africa. In brief, unlike Western Australia, Ghana and its neighbours are rich in new discoveries either with, or potential for, well over a million ounces each, and high grades into the bargain.
> 
> ...


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## ands (20 October 2009)

A High of 31c on the highest volume ever! $40 million market cap @ current 26c - must be getting close to fair value. Need those drilling results to come through to keep this momentum.


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## matty193 (20 October 2009)

Looks like Jason Bourne may have smashed through that wall for you today, Kennas. And was given a speeding ticket for his efforts!


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## Sean K (21 October 2009)

Yes, was a good push through, I'm really surprised that it went through on no news. And the volume was extremely unusal. Could be just day traders jumping on junior gold bandwagon and AZM being mentioned in the media as the cheapest goldie assisted. But, it's the cheapest for a reason imo and deserves to be running at a lower valuation than some of the others. Still needs exploration success to eventually mine anything. 

I'm not overly pleased with yesterdays candle. Was chassed way too hard early, and now we have a bunch of holders sitting on an immediate loss. If they're traders, they might be out, or it won't take much for them to cut losses and dump on the next open. Would have much rathered see a smaller white candle for longer term health.


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## Sean K (27 October 2009)

This drilling campaign was supposed to start in September so a little disappointed they didn't keep the market informed on things. They could have just given a quick update to say a rig was on its way or something. Anyway, they're about to start a new campaign, and what a campaign! 41,000m of drilling. Sounds like a lot for a spec junior. 

Proposed drilling at the green stars on the map. Interesting they've selected Kunche West and this newly named 'Aduane' Prospect for quite a lot of attention. Looking for that new discovery they need. Fingers crossed.


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## ands (27 October 2009)

I was considering bailing after this had run so fast in such a short space of time (if I have learnt anything from the GFC it is to take profits). But this massive drilling program shows they are serious, it has certainly renewed my interest.

Hopefully it encourages other investors to jump on as well. As you said Kennas, if they had continually updated investors as things progressed it would keep that interest in AZM alive. And people like me wouldn't have considered getting out in the first place.


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## drillinto (30 October 2009)

October 29, 2009

Azumah Is At The Cutting Edge Of Development In The New Gold Province Of North-West Ghana

By Our Man in Oz
www.minesite.com/aus.html

It’s been a long time between speeding fines for Stephen Stone. But last week, as chief executive of Australian-based Azumah Resources, he would probably have been both dismayed and delighted at copping a ticket from the watchdogs at the Australian Securities Exchange. Why, they asked, had the company’s share price had hit A31 cents? “Not aware of any market sensitive information” was the bog standard reply, coupled with the cheeky observation that the board of Azumah shared the view of the stockbroking firm, BGF Equities, that the company’s shares were “currently undervalued”. Tempting as it is to call on that famous “he would say that, wouldn’t he” quip from Mandy Rice-Davies when she was told that Lord Astor denied an affair with her, there is in this case every reason to believe the Azumah board, and to remind Minesite’s faithful readers that four months ago (June 29th) we gave the company a positive review when it was trading at A14 cents.

Back then Minesite’s Man in Oz had been impressed by what appeared to be the sniff of a substantial gold strike from early drilling at the Collette and Julie prospects which were acquired as part of a deal to expand the footprint of Azumah’s Wa project in north-west Ghana. This is a region that’s fast-becoming one of the world hot new gold provinces. Minesite’s man was also curious as to how Azumah was digging itself out of the tricky situation created by being closely associated with the failed Australian goldminer, Croesus Mining, a relationship which dragged Azumah’s share price as low as A4 cents in 2008. Stephen did a good job in June, and he did a better job this week, explaining why the Azumah story has moved ahead rapidly, why confidence is growing inside the company, how it has left the past behind, and how it is on the way to completing its transformation from explorer into emerging producer with a strong business model. 

“I’m certainly seeing our work as more of a developing business than an exploration play”, he said on the sidelines of a mining conference in Brisbane. “The scoping study we have underway at Wa is now into a continuous process, addressing critical issues such as environmental studies, in preparation for more detailed work.” The aim is to use Wa as a jumping-off point for Azumah, when it’s up and running and producing around 70,000 ounces of gold a year at a cash cost of around US$483 an ounce. Preliminary mine studies assume the processing of one million tonnes of ore assaying an average of 2.24 grams a tonne over an initial life of 4.5 years, sufficient to generate a pre-capital operating surplus of A$138 million. 

Modest as this start up sounds, it is only the start. In fact, there’s a growing belief that Azumah is positioned to grow far beyond 70,000 ounces of a gold a year thanks to its ground position in what Stephen is now referring to as “Ghana’s emerging north-west gold province”. Part of his conviction stems from Azumah’s own exploration results, part from what’s happening on the tenements of neighbours, and part from the way the geology of north-west Ghana is being re-interpreted as a direct extension of the southern portion of the country, which is home to some of the world’s biggest gold mines. The only reason the north-west has been slow to develop is that it was always regarded as too remote. Translated, that means explorers couldn’t be bothered in the early years, because the pickings were so rich in the south. 

Times change, even if the geology does not, which is why Azumah is about 10 days away from launching its next drilling assault on its tenement package. Scheduled to run into the new year, the next round of work calls for a total of 41,000 metres of reverse circulation, air core and diamond drilling. First assays from the campaign can be expected in about six weeks, and will continue to come in over Christmas. Stephen said the focus would be on extending the existing Kunche and Bepkong deposits, which have already been shown to contain a resource of 750,000 ounces of gold. “We’ll also be infilling shallow, high-grade mineralisation outlined at Julie and Collette”, he said. 

In terms of commitment, the 41,000 metre campaign is the biggest ever mounted by Azumah on its 3,100 square kilometre tenement package. “We aim to substantially increase the momentum of our exploration effort and our development studies”, Stephen said. “The aim is very simple. We want to build the first stand-alone commercial goldmine in north-west Ghana. As we currently see the project evolving, it will consist of a central processing plant close to Kunche and Bepkong with material from Julie and Collette trucked across. Trucking means we might lose half or three-quarters of a gram [in gold, because of the cost involved] but they’re looking to be pretty robust deposits.” 

On the market, Azumah shares have pulled back after their high-speed dash to A31 cents and are now be trading around A22.5 cents, a price which values the company at a lazy A$34.6 million. Lazy because Azumah is at the cutting edge of work on what is shaping up as an exciting new gold province, and because it already has sufficient gold in the ground to start a small mine. Added to that, it is about the start one of the biggest drilling campaigns ever seen in the region. Given that the southern Ghanaian gold industry started small and grew like topsy there are reasons to believe that northern Ghana will follow the same route, and Azumah has booked itself a ringside seat.


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## nazzysmith (7 November 2009)

FYI

A news letter spruiked this company 3rd week of Oct (You will have to guess which one) and like there other recco's the price jumped. 

Nazzy.


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## Sean K (7 November 2009)

nazzysmith said:


> FYI
> 
> A news letter spruiked this company 3rd week of Oct (You will have to guess which one) and like there other recco's the price jumped.
> 
> Nazzy.



BGF and Blackswan have both covered AZM and both took up most of the placement. They really had very little interest in ramping the stock up, to then buy in at the ramped up prices. That is just silly. They would have been much better off saying very little, then buy in at a lower placement price, and then ramp it.


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## nazzysmith (18 November 2009)

kennas said:


> Looks like it's finally getting a re-rating. Going to open up at about 27c which is very unusual. Going to reach that H&S target mentioned earlier. Especially when they aren't even digging holes at the moment. I'm not sure we can blame the BGF report. Maybe. And POG..
> 
> Taking profits at 15 cents looks to have been a cunning move. Nice one kennas.





Sorry Kennas,

It was to let you know the true reason for the jump on 20th October

Newsletter came out on the 19th October at 5.18pm.

Like all of there recco's you will always see a jump. (Not that this is a good thing) Virtually impossible to buy in at there reccomended price.

Been following them for several months. I have never seen any of there reccos not jump in price. 

Thats why it opened at 27c. 

I do own the share now.

Nazzy.


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## Chargin8 (23 November 2009)

Ive been told about this stock by a friend. Ive never bought stocks before, this might be my first.

Would you think 27c is a bit late to get in? 

My friend was talking about how the strong AUD meant their costs were a lot lower because they pay all their expenses in USD and that was a great way to combine our dollar and the gold price.


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## Sean K (24 November 2009)

You need to make your own call on that Chargin.

How do you measure a company to see if it's cheap, has good future gowth prospects, or is technically trending up, or breaking out?

If you can't discuss these things, then you're throwing darts at a board. That's OK if you're a rapid finger day trader, but investors shouldn't throw darts imo.

Here is a spreadsheet of all gold stocks I follow with their resources, current MC and EV, and some notes for you to start comparing. 

A way to check if AZM seems good value is to compare it with other West African explorers like GRY, ADU, CDT, and maybe PRU. Check all their websites and compare their resources etc etc etc. As a start.


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## Chargin8 (28 November 2009)

I know what your saying but I was just wondering what people who know a lot more than I do about stocks and particularly mining stocks thought about this company and its current price, just getting opinions is all.

I havent bought yet but I watched it drop to .26 yesterday and then climb to .30c a few hours later.


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## CapnBirdseye (28 November 2009)

Chargin.  I think you have answered your own question.  

When you have read enough about the stock, and gold stocks in paricular, played with Kennas' spreadsheet and watched the price action for a while you'll know if you should enter the  trade or not based on your own risk profile and timeframes.  What do you expect this stock to do and in what time-frame?

Probably enough about this for this thread, it might be worth taking your questions to the Beginners Lounge if they are not stock specific.

Feel free to ask about certain pieces of info relating to this stock that will allow you to assess it for yourself.  Also have a look at the gold stocks comparison thread - lots of good info there.


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## Chargin8 (9 December 2009)

Dropped to 25c today, I havent heard any reason for the drop, anyone know anything thats going on with them in particular?


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## CapnBirdseye (9 December 2009)

Not the only small cap gold explorer to take a hammering today.  Relates to the fall on POG.  Suprising, as strengthening USD should be softening the landing.  Uncertainty does terrible things to small caps.


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## happytown (17 December 2009)

results for the drilling campaign (41,000m) recently begun (12/11) at the Wa Project should begin to be released over the coming days

marketrazon has landed
if you have received this post it means you haven't yet put us on your ignore list - what are you waiting for


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## Sean K (20 January 2010)

Some results out for the major drilling campaign. 



> *NEW ZONES OF MINERALISATION CONFIRMED AT WA GOLD PROJECT, GHANA*
> 
> Mineralisation identified at Aduane prospect between existing Kunche and Bepkong resources.
> Increases the possibility of additional resources being delineated between existing deposits.
> ...




One third down. Not too exciting to me, but positive. The results from btween Bepkong and Kunche are important I think. If the trend continues between them it will make for a more economical project. 

Some of the grades look good overall, but the intersections pretty limited...Need some wider hits to get more interest I think.

AZM just tracking sideways for the past 3 months while nothing really happening. 

Trading at a fairly high EV to Oz ratio so not much room to move on the upside unless some more significant intersections are produced.


----------



## kgee (20 January 2010)

Hi Kennas
I thought results from Bepkong North were discouraging
going to have to look over the drill program again, approx a 1/3 completed so roughly 27000m still to come (which IMO is more than a junior in Aus would do in a season),
but I kind of think quite a few hopes were hinged upon the north (I'm Guessing)
I shouldn't post b4 doing more research


----------



## kgee (21 January 2010)

My mistake a 1/3 of the RC drilling completed so 12000 m to go

Still 1000m diamond drilling + 21000m aircore drilling ongoing

so 34000 m to go


----------



## Sean K (27 January 2010)

More results flowing through.



> *High-Grade Drilling Results to Support Resource Upgrade at Wa Gold Project, Ghana*
> 
> High-grade intersections confirm continuity of near-surface gold mineralisation at Julie prospect. Best results include*:
> 
> ...



A few good grades here, but the total results don't look too flash really. 17 of the 30 results listed are less than 2g/t. All adds up I suppose.

Julie has an historical non-JORC of 300k oz so expect about that I suppose. Will take them over the 1m ounce, but I think it's well factored in to the current share price.

That new vein south of Julie discovered through rock chips could provide some upside surprise. Promising.


----------



## Chargin8 (5 March 2010)

Dropped to 20.5 cents today which seems strange considering the move the gold price has made recently. I havent heard any other news about the company to coincide with the drop.
I bought at 23.5, but Im thinking of buying some more now might be a good idea as I can see gold continuing its rise.


----------



## Pivotonian (5 March 2010)

I think the reason for the SP drop was that a big sell order hit the market and took out a few levels of standing buy orders.

Why someone decided to sell off a whole chunk of AZM this afternoon I don't know ...


----------



## Sean K (10 March 2010)

Ann out, some better grades here, which is nice. Nothing spectacular though, just solid. Sure to add to the current resource inventory, question is how much which is a pluck. Getting over the 1m ounce mark will be a big positive.



> *AZUMAH SET FOR RESOURCE UPGRADE*
> 
> MORE HIGH-GRADE DRILL RESULTS AT JULIE AND COLLETTE MULTI-OUNCE SURFACE ROCK CHIP RESULTS FROM RECENTLY DISCOVERED JULIE VEINS
> 
> ...




Julie had a non JORC 300k resource, so would be dissapointing to have anyting much less than that. I have certainly factored that in.

Doesn't look like Collette will with get a JORC announced.

They were also working on step out and infill of Bepkong and Kunche, so maybe an update there.

Also some exploration potential here:



> New Laminated Quartz Lode Identified at Julie
> 
> Azumah’s front-line field geologists have also discovered at Julie a new north-south oriented laminated quartz vein with rock chip samples of surface outcrop exceeding *150g/t gold - approximately 5oz gold per tonne*. A programme of RC drilling has been designed to test this new structure which will be completed in conjunction with RC drilling targeting extensions to the Julie structure and other recently identified parallel quartz veins that returned surface rock chip assays of up to *186g/t gold – approximately 6oz gold per tonne*.



Just rock chips of course.


----------



## Chargin8 (23 March 2010)

I see theres a trading halt on AZM at the moment. So that means theres an announcement coming shortly? 
Anyone know anything?
Theres a bid order of 28c on commsec too, small quantity though.


----------



## Miner (23 March 2010)

Chargin8 said:


> I see theres a trading halt on AZM at the moment. So that means theres an announcement coming shortly?
> Anyone know anything?
> Theres a bid order of 28c on commsec too, small quantity though.




My hunch is the rock chip has come into reality .

Was monitoring but too late to buy yesterday. 

SHould have trusted Kennas' and Kgee's  postings, ASX postings and my hunch. 

Any way the holders I think you are going to see a winfall - My best wishes.


----------



## CapnBirdseye (23 March 2010)

Must be pretty decent for a 2-day halt, I'd would expect more than was previously aluded to.

The MQG increase was a bit of a pointer to something good, I more than doubled my holding yesterday based on this.  A bit of luck there, lets see how it pans out.

Arr.


----------



## happytown (23 March 2010)

the trading halt is due to azm about to ann a significant resource upgrade, it says so in the 2nd ann this morning re the trading halt, most likely the inclusion of a jorc resource estimate for the Julie prospect


----------



## Chargin8 (23 March 2010)

Sorry for the OT but where do I see this information you are talking about? The news section on the Azumah website has nothing.
Where do you see its a 2 day halt and when does T2 start?

Im pretty new to all this..


----------



## CapnBirdseye (23 March 2010)

Great word significant, hard to quantify.  In this case, with the trading halt I'm assuming it really is going to be significant.

The second ann today from AZM says normal trading will resume following an announcement on Thursday.


----------



## Sean K (23 March 2010)

Chargin8 said:


> Sorry for the OT but where do I see this information you are talking about? The news section on the Azumah website has nothing.
> Where do you see its a 2 day halt and when does T2 start?
> 
> Im pretty new to all this..



Company websites are known to be tardy with noting the announcements.

You should go through the ASX site.

Or your on line broker.

Sounds like you don't have one of those so ASX.

http://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=azm&timeframe=D&period=W


----------



## Sean K (23 March 2010)

And on the back of this they are asking for some 'incentive' options.

I can't see much incentive there, can anyone else?

26c exp in 2013? HUH??


----------



## Chargin8 (23 March 2010)

Im with Commsec, but wasnt looking in the right spot, they have a "news" section for each stock but thats empty. Its under announcements which I should have clicked to seeing everyone here referring to "ann"'s. Its all there.

So going on the "buy orders" that can be seen on sites like commsec, can you guage where the price might leap to when its trading again?

I see buy orders for this stock at a range all the way to 31c right now. What are those guys basing that on, do they know something we dont..?



kennas said:


> Company websites are known to be tardy with noting the announcements.
> 
> You should go through the ASX site.
> 
> ...


----------



## CapnBirdseye (24 March 2010)

As for the bid prices, the bidders don't know any more that you do.

They just want to be at the front omf the line at a particular price.  No doubt most of the bids will gave been moved at some time during pre-open once an announcement has been made.  If you want to know the opening price, it can be worked out fairly easily, but as I said bids will likely change a fair bit leading up to the open.

We'll find out Thursday.

As for the options, like shooting fish in a barrel.  A few at 50c and 70c would have seemed reasonable too.  Nothing like setting your targets low.  Saying that, the incentive is still there I guess.

Could turn round quickly this one.  From what I remember azm weren't looking to go to production any time, just to sell ontheir reserves - anyone know otherwise?


----------



## CapnBirdseye (24 March 2010)

Of course I'm talking rubbish.  Last report said looking for production start around end of 2011.

Must stop replying to threads on my iphone without checking my facts.


----------



## Chargin8 (24 March 2010)

Well the news is out and looks like trading has started, I thought it was halted until Thursday though?
29c right now. Im trying to decide whether to sell now or wait a bit.


AZUMAH BOOSTS RESOURCES TO OVER 1.1 MILLION OZ GOLD MAIDEN 350,100oz MINERAL RESOURCE AT JULIE.


JORC reported Mineral Resource of 4.9Mt @ 2.2g/t gold for 350,100oz for Julie prospect – 1.0g/t gold cut-off
Open in all directions
Nearly 60% in JORC Indicated category
100% of resource above 80m vertical depth
Maiden JORC resource for adjacent Collette prospect expected by June 2010
New project-wide 40,000m RC and RAB / Aircore drilling campaign to commence immediately -excellent opportunity to increase resources
Feasibility Study progressing in line with schedule


----------



## happytown (24 March 2010)

CapnBirdseye said:


> ...
> 
> The second ann today from AZM says normal trading will resume following an announcement on Thursday.






CapnBirdseye said:


> ...
> 
> We'll find out Thursday.
> 
> ...






Chargin8 said:


> ...
> 
> I thought it was halted until Thursday though?
> 
> ...




read the wording of the ann



> ... Unless ASX decides otherwise, the securities will remain in pre-open *until the earlier of the commencement of normal trading on Thursday, 25 March 2010 or when the announcement is released to the market*.



it never stated that the ann would be released on Thursday

this is as per ASX Listing Rule 17.1.1, see Note as follows



> Note: ASX Market Rule 16.4.2 says that a trading halt can be applied for a period not exceeding the commencement of trading on the second trading day following the day on which it is requested.



that is the reason for the wording of the ann, all trading halts are worded in this way

the trading halt will be lifted (in almost all instances) after the ann is released which can be anytime prior to the commencement of trading on the second trading day following the day on which it was requested - note if the co wants the trading halt to continue, the trading halt becomes a suspension of trading

here the trading halt was requested on Tuesday and the ann released on Wednesday (today) and the trading halt was lifted a short time after the release of the ann today

having said that, nice ann


----------



## Sean K (24 March 2010)

Well, they made it over the 1m oz mark which is excellent, but xpected. Been saying it for months with the addition of the Julie deposit, non JORCd at 300k. A slight surprise to the upside for me with another 100k over the magical 1m.

As far as time to production, anyoneknow how long it takes to go through PFS DFS extra FS, BFS, development, construction (a millis not easily put together), initial mining, ironing out the problems, until they actually can produce an ingot. Don't count your chickens. 

In my opinion now, best thing would be a decent takeover offer from someone nearby with skills in developing a mine in W Africa and a bank roll.


----------



## shag (26 March 2010)

hi guys
been on 'holiday' after kennas went west 4 a bit.
i sold half of this holding 4 a change, some from 10c buy, expecting it to slump back post announcement. to me this statement wasnt really news and nothing flash. maybe the seminars got a few bods keen, or else the stock has finally got traction post the 1mill club entrance.
ideas anyone....
seems its got a few white candles now tho.


----------



## Chargin8 (26 March 2010)

Well I bought at 23.5 and sold at 33.5, a day after the announcement. Seemed to me it found a peak on the first day after the halt and then relaxed so as soon as it got near that peak again I sold.
With the down trend in the gold price, the USD strengthening slightly I didnt think there was much more to be had, currently Im fairly happy with 33.5 but it seems there still might be some upward movement to be had..


----------



## shag (29 March 2010)

to me that 2.5mill omarket trade was a bit sus. who drops a lazy mill on a speccie unless they know something, ie broker imminent upgrade.
by graph, i cant see how this can b sustainable, esp. with kennas funnies doubts in the past.
could just b my sellers remorse....
seems like the rapid breakout from 10 to 20ish, before it dropped back a bit 4 some time.


----------



## Sean K (8 April 2010)

shag said:


> could just b my sellers remorse....



Tell me about it shag. What a time to come back to reality.  

A 4c rise today for 10% is amazing when you think the stock actually hit 4c at the low last year. Incredible. 

Mr market's factoring in plenty of upside in AZM and POG maybe. And, I guess risk is back in the game to drive explorers/developers higher on not too many fundamentals. 

Maybe the old $30 an ounce for a W African explorer needs to be changed to something around the $60 an ounce.


----------



## shag (9 April 2010)

gry has been having a big run too over the last three weeks, on no news apparently, so somethings up. something clearly changed as it was in the kennel for sometime prior to this long run.
interstingly pru has not moved much.
like you imply, maybe africa has got traction in the mainstream, but with gry i've been waiting for a belated announcement.


----------



## Sean K (9 April 2010)

The old tiger is licking his wounds on AZM and GRY shag. I had quite a bit of money in these from around the bottom and added along the way up till I decided the world was fvcked. That was months ago.


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## CapnBirdseye (9 April 2010)

Surely AZM is looking pretty over-valued right now.  I got out today at 0.485.  

I don't see the next upgrade living up to some obviously very high expectations.

I do plan to get in again soon, but I'm expecting it to drop off a bit. 

EV/oz of about $74 atm.


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## Sean K (20 April 2010)

I missed the 6 April ann regarding Collette. Looks like it could hold a few ounces but how many is a dead pluck at the moment.

Management starting to ramp a bit I feel.

"Multimillion ounce" Bit early to be calling that one I think. I suppose there's 2m ounce potential, which is multi...hm



> ASX Release
> Tuesday 6th April 2010
> 
> *Azumah set to increase resources after more strong drilling results*
> ...




And I've got no idea who Clarus is, or why that's so significant really. Looks like just a small investment firm to me. 

http://www.clarussecurities.com/

hmm


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## Chargin8 (27 April 2010)

Big drop, 10%   why  ?
Wonder if nows a good time to buy back in....
Diggers and drillers say its triggered their trailing stop to sell, thats where I heard about this share originally.


----------



## CapnBirdseye (27 April 2010)

That's some decent volume today.

What did the diggers and drillers stop go at?  Also how many subscribers do they have

Today's fall may well trigger some interim results.... Hope so as I'm back in on AZM.


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## Chargin8 (27 April 2010)

For now though, the unusually sharp fall of 11.5% in the share price this morning suddenly pushed us under our pre-determined trailing-stop price of $0.39.


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## Sean K (2 May 2010)

I think it's been sold off because it was becomming very expensive. Crazy run to over 50c imo. It's not worth that much. I think was even trading more expensive per ounce than PRU, who have 7m oz in the bag and looking at over10m eventually. AZM just went too far. Was a bargain under 10c, but over 50c was obviously in sell territory. Technically, to the downside, around 35c has firmed up as important, after that a potential floor at 30c. I'd be looking at a bounce off that level if reached, pending overall market conditions. Looks stormy out there.


----------



## SimoniS (12 May 2010)

any one starting to feel this stock acting like a yo-yo lately ?

up 7c(20%) today on heavy volume, could this be a result from the recent spike in gold price ?


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## eddyeagle (12 May 2010)

A newsletter advised to sell it and then re-recommended it! That would explain the yo-yo effect! 

Other factors would include - volatile markets, super tax, gold strength etc.


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## Sean K (29 May 2010)

Did I just read that they'd done a placement at 40c? 

Is that supposed to read 50c? 

Maybe just a typo.


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## CapnBirdseye (29 May 2010)

Nope, it's 40c.  40c seems reasonable to me.  Why would you have expected 50c?  AZM has  barely touched 50c in the past - its generally fallen off pretty quickly.


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## Sean K (30 May 2010)

CapnBirdseye said:


> Nope, it's 40c.  40c seems reasonable to me.  Why would you have expected 50c?  AZM has  barely touched 50c in the past - its generally fallen off pretty quickly.



My bad. I somehow thought that they were trading well above 40c the past few weeks when the book build would have been done. If they're currently trading around that level then all good.

Market seems to be factoring in some significant resource upgrades for the likes of AZM and CDT. Not so much for PRU.


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## happytown (22 July 2010)

the collette deposit jorc resource estimate has been pending for the last 2 anns - june preso timeline stated resource due jun/jul, anyday now?


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## happytown (10 September 2010)

collette deposit jorc inferrred resource estimate finally out today

0.909Mt @ 2.07 g/t Au for 60,600ozs Au (using 1.0 g/t Au cut-off)

wa project jorc resource estimate now 17.926Mt @ 2.0 g/t Au for 1,165,000ozs Au


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## Sean K (10 September 2010)

Nice to keep adding resources at such shallow depth. I wasn't expecting many ounces in there considering the widths and grades. Was only a couple of nice hits that raised prospects but generally average.

How about all those drill holes to the south that turned up nothing. That's a lot of reconnaisance drilling for nada.


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## Althom (15 September 2010)

Yep, but cheap reconmnaissance given it was aircore and drilled at something like 750 to 800m per day


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## Sean K (15 October 2010)

Striking while the iron's hot on gold with another capital raising. They just raised 11m through an institutional placement in May and had 14m in the bank in July. 

Good to take advantage of the situation I suppose, hope it's got some carrot for current holders and not another one of these discounted placements to institutions which dilutes retailers substantially. 

Bit of an ugly H&S forming up there. Hope the support holds.


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## Sean K (20 December 2010)

I was a somewhat bullish supporter of AZM back around 10c but as the multiples kept climbing up with not much advance in the total in ground gold and no more significant discoveries, I'm more concerned. They seem to be going into turtle mode on the feasibility studies to development. Still 2 years away? If they can't race to BFS, DFS,  on the current POG, then they will probably come a cropper imo. 

*Wa Gold Project Feasibility Study Rapidly Advancing*

	Feasibility Study on 70,000ozpa-plus project on-track for delivery early next year
	Final capital and operating costs available mid-January 2011
	First production set for early 2013
	Definitive level metallurgical test work close to completion and site engineering investigations substantially completed
	Plant and infrastructure being designed to accommodate production expansions in line with expected resources growth
	Ghana government to upgrade local power infrastructure negating need for stand-alone power generation and meaning reduced capital and operating costs
	Strong flow of drilling results over coming months from aggressive exploration programs aimed at increasing current 1.2Moz resource base


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## Althom (28 December 2010)

2 yrs from completion of Feas Study in early 2011;
Ist step - submit FS and EIS to Ghanaian govt.
2nd step - permitting generally takes 14-18 months in Ghana and can't start until FS and EIS submitted and is only finalised once EIS is approved
3rd step - construction starts when permits issued - 40-50 week period for construction/commissioning
So 2 years is v.reasonable. Look at other recent examples - Adamus Nzema Project (greenfields)-3.5 years, Perseus Ayanfuri Project (brownfields) 2 years and they had mining leases that were still valid from previous owners. The Wa project is a greenfields project so Nzema is the best most recent example although they have significant social issues that Azumah doesn't have.


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## Chargin8 (24 January 2011)

Quite a drop today huh, bit of a sell off from somewhere?
Golds price drop surely hasnt caused the shareprice to drop by that much?


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## Sean K (24 January 2011)

Chargin8 said:


> Quite a drop today huh, bit of a sell off from somewhere?
> Golds price drop surely hasnt caused the shareprice to drop by that much?



At these times the juniors will drop the most compared to producers. If the longer term gold story is true then it's no problem. If you think gold has hit a peak, something more to think about I suppose. Nothing else to explain the overshoot today I think.


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## drillinto (27 January 2012)

January 24, 2012
Azumah’s Plans For A High Margin West African Gold Operation Stimulate Serious Interest In North America
By Our Man in Oz

Any doubts about the market’s appetite for gold were swept away in Canada this week when a small Australian-based explorer with a big African project on its books was bowled over in a stampede of cash-waving investors. Azumah Resources went to the market with a request for C$20 million priced at C40 cents a share. Despite being relatively unknown, and rarely traded on the Toronto stock exchange, Azumah got its money in three days, and was left with enough requests in the unfilled file to take in another 15 per cent, or C$3 million, as permitted under the short-form prospectus. And that option is something chief executive Stephen Stone said he was still considering when Minesite caught him at Toronto airport waiting to catch a plane to Africa.

“We were pretty pleased with the market’s response to the capital raising”, Stephen said. “We haven’t been well known in the North American market, so these new shares will create an opportunity for Canadian and American investors to get a taste of what we’re doing.” And what is Azumah going to do with an extra C$20 (or C$23) million? 

“All of the fresh funds will go into the drilling program we have under way at our Wa project in Ghana, and provide us with the confidence to start pre-construction work at site, and place orders for long-lead items of equipment.”

Stephen said the Canadian-focussed capital raising would help create a deeper and more interested market for Azumah as the company enters a period of strong news flow. “Over the next few months you’ll see a steady release of information on the work at Wa”, he said. “Drilling results are flowing in as part of the 250,000 metre program we started last year. We’re moving towards a decision on the appointment of project design and construction management engineers. An updated mineral resource estimate is schedule for release early next month, followed by a maiden feasibility reserve in March, and a finalised feasibility study.”

A hectic schedule, indeed, which explains why Stephen was flying out to Africa at the weekend. Or does it..? “Well, I’m not heading directly to site,” he said somewhat sheepishly. “I’m off to climb Mt Kilimanjaro.” 

“Why?” - is the silly question from Minesite’s Man in Oz, because he’s already guessed the answer as the question is asked. “It’s one of those things you’ve got to do before you die.” Well, in that case the best of British (or Aussie) luck, and wave hello to the world from Minesite when you get to the top.

Chit-chat aside, the Kilimanjaro jaunt for Stephen is a well-earned break, if you call trekking up a 5,895 metre volcano a holiday, now that he’s driven Azumah to the point where it is within sight of starting a very profitable gold mine. If all goes well first gold can be expected from Wa in late 2013. It will be produced at an annualised rate of around 100,000 ounces and at a cash cost of less than US$600 an ounce, which at the latest gold price implies a gross margin of more than US$1,000 per ounce. Little wonder the Canadians and their southern cousins rushed to get a slice of Azumah at the current C40 cents, (or A40 cents on the ASX).

As it is currently understood (and drilling is ongoing), the Wa project in north-west Ghana will require a capital investment of around US$135 million. First year ore will grade 2.7 grams per tonne and will be fed into a central processing plant capable of handling between one million and 1.4 million tonnes a year. The ore head grade will vary over the early years between 2.1 grams per tonne up to that 2.7 grams per tonne, while the currently envisaged life expectancy is highly likely to extend beyond the currently pencilled in six years. “That life of mine figure is likely to increase once we re-optimise pit-shell design and feed more drilling results into the planning process”, said Stephen.

The latest drilling results from Wa indicate that a reasonable resource upgrade figure can be expected in February. Recent assays have run as high as 15.6 grams per tonne over six metres, from a depth of 53 metres at the Bepkong South structure, and 16 metres at 2.34 grams per tonne from a depth of 23 metres at the Aduane structure. Those names from the latest drilling offer a clue that Wa is not a single orebody. It is a series of structures centred on the Kunche, Bepkong and Julie structures. However, reconnaissance exploration and aircore drilling have revealed a series of additional structures which will require deeper and more detailed drill testing.

In effect, Wa has entered a phase which might easily be called “the end of the beginning”, a point no doubt noted by the new North American investors who Stephen said include a number high net worth individuals as well as institutions. “This raising takes our share register to about 60 per cent institutional”, he said.

As for the man himself it is to be hoped that his trek up Kilimanjaro is in the same end-of-beginning category and not the other way round – which it might be if he tries to beat the climbing record of five hours, 38 minutes and 40 seconds. Whatever the outcome all the best from Minesite for the climb and for continued success at Wa.

Source >> www.minesite.com
********************


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## Chargin8 (30 March 2012)

Wow AZM has really fallen off a cliff. Ive been in and out of this stock for a couple of years and have done quite well. Lately Ive been buying into the big dips trying to average a buy I made at 40 cents to a lower price. But it just keeps going down heh.
All the news Ive heard about them has been positive so IMO its very over sold. Gold is stagnating a bit but that shouldnt have pushed the price down to this level.


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## Sean K (31 March 2012)

There's a couple of factors at play I think.

1. POG stalled
2. Global uncertainty raising doubts on ability to raise capital for development
3. No major upgrades or new discoveries around Wa
4. Slow to progress feasibility studies to development
5. Suspect investments in Castle and Endeavour losing focus on the ball
7. Going through the normal discovery to production price cycle trough

etc

I remember when this company was banging on and on about how cheap they were using a MC to oz in the ground metrix. I think we'd find that they went off the scale at some point and became very expensive. 

Perhaps add 8. moving back in line with peer valuations.

Most valuations of this are at about $0.70. Check pg 22 of their 12 Mar presentation.


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## Chargin8 (2 April 2012)

Thanks for that detailed reply, food for thought.



kennas said:


> There's a couple of factors at play I think.
> 
> 1. POG stalled
> 2. Global uncertainty raising doubts on ability to raise capital for development
> ...


----------



## Chasero (2 April 2012)

Chargin8 said:


> Wow AZM has really fallen off a cliff. Ive been in and out of this stock for a couple of years and have done quite well. Lately Ive been buying into the big dips trying to average a buy I made at 40 cents to a lower price. But it just keeps going down heh.
> All the news Ive heard about them has been positive so IMO its very over sold. Gold is stagnating a bit but that shouldnt have pushed the price down to this level.




do they need a capital raising soon?

$9m spent in 2011. $8m left in cash at bank...

Means they may run out of cash by 30 June 2012 if they spend 9m??

Don't know what else is causing the sp to drop other than markets being scared of a CR due to NST and RED recent C/R??


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## Chargin8 (2 April 2012)

looks like a good buy to me now at current 26.5c
Who knows, tomorrow it might be 25c!


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## Chargin8 (2 April 2012)

Haha, or today! at 25c.
No I havent bought any yet...



Chargin8 said:


> looks like a good buy to me now at current 26.5c
> Who knows, tomorrow it might be 25c!


----------



## Sean K (14 April 2012)

Chargin8 said:


> Thanks for that detailed reply, food for thought.



The other two things to note is all the trouble brewing all around Africa including W Africa.

I'd also put some more emphasis on the feasibility study issue and how delayed it is and why. It was supposed to be out in late 2010 I think. They announced around then that then there'd be some production costs announced in Jan 11. Then, it was supposed to be out mid year. We're still waiting for a feasibility study. Of concern to me would be the cost per ounce. A few years ago around $400 an ounce was good. Now companies are pulling out $1000 an ounce numbers. Costs have skyrocketed and more difficult deposits mineable due to POG running to $2000. What happens when/if it drops back again...

From Dec 2010:



kennas said:


> I was a somewhat bullish supporter of AZM back around 10c but as the multiples kept climbing up with not much advance in the total in ground gold and no more significant discoveries, I'm more concerned. They seem to be going into turtle mode on the feasibility studies to development. Still 2 years away? If they can't race to BFS, DFS,  on the current POG, then they will probably come a cropper imo.
> 
> *Wa Gold Project Feasibility Study Rapidly Advancing*
> 
> ...


----------



## TrendGAIN (15 April 2012)

The down trend has been pretty consistent, but has accelerated in the last two months. AZM has stretched far away from its mean and Friday could mark the beginning of a snap back. It needs to get back above the $0.36 mark to have a chance at an uptrend. Interestingly, the OBV (when looked at a bit longer-term) indicates that buying and selling volume has been consistent and flat through the down trend, suggesting that price action reflects inactive buyers as opposed to active sellers.


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## Althom (9 May 2012)

Feasibility study was due mid 2010 - what's the holdup?


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## Sean K (9 May 2012)

Althom said:


> Feasibility study was due mid 2010 - what's the holdup?



There was never any decent justification. I think they were just trying to shore up more M&I resources but my sceptics hat says the production cost per ounce in their cropping was pushing the envelope. Could also be the general market conditions for funding development and they've just been delaying for the right moment. Or, just not well managed or communicated to the market. 

Maybe they're just 'mining the market'.


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## Sean K (8 June 2012)

Azumah Nelson must be quite embarrassed by this week effort to get off the deck. The company has no one to blame but themselves even with POG coming off and credit and sentiment drying up. 

IMO if they had have concentrated on just getting the current resources into production instead of buying into other crap and focussed on further exploration they'd be in a much better position. As it is, if POG doesn't stay high they could turn into dust.


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## Althom (25 June 2012)

Yep, pretty sad effort all round.


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## Sean K (26 June 2012)

Althom said:


> Yep, pretty sad effort all round.



Not sure if you're being sarcastic or not. 

Since the peak in 2010 their MC has gone from about 240m to 60m or so.

I suppose in 5 years they've taken their MC from just a few million so depends on perspective.

Will they actually make a mine? 

Last presentation said FS due Q2, 4 days away.

...but they said that about 2 years ago too...

But wait! Further delays! LOL

Report out on 19 June says:



> A maiden Mineral Reserve statement is due early in Q3 2012 and the Feasibility Study for the first stage of the Wa Gold Project will be completed in the weeks to follow.




OMFG! Can they just quit announcing any dates...


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## Althom (27 June 2012)

No, no sarcasm intended. FS was due 1st Qtr 2011 initially, now 3rd Qtr 2012 and resources have only gone up due to decrease in cutoff grade. 
With difficulties in getting funding now c.f last year you have to wonder if they've missed the boat.


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## Sean K (27 June 2012)

Althom said:


> No, no sarcasm intended. FS was due 1st Qtr 2011 initially, now 3rd Qtr 2012 and resources have only gone up due to decrease in cutoff grade.
> With difficulties in getting funding now c.f last year you have to wonder if they've missed the boat.



Will depend on QE3, 4, 5, 6 etc. If the world keeps printing and borrowing then POG will keep going. From what we're seeing in Europe though, I'm not sure. There seems to be a demand for austerity and control of spending, not printing. The US isn't there, but if that crazy idea of spending what you've saved catches on, then POG could be cactus.


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## Sean K (19 July 2012)

Interesting ann today with some deep drill results at Julie indicating that it's at least double the depth. Not sure if that means double the resource in the upcoming upgrade but could be. Could mean it's a standalone operation and they won't have to truck the ore a long way to Kunche. Maybe the planets are starting to align. 

What I do not want, and neither should you, is that they put the next FS on hold to cater for the additional ounces. They have enough at Kunche to go to DFS and start development really, with clear expectation that the life of mine will be extended due to these upgrades. 

Get on with it Parso!


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## Althom (20 July 2012)

2.5 years of drilling on top of the work handed over by Crew resources for ~400kozs indicated and ~260kozs inferred so reserve max 300-350kozs  - needs to at least triple for a standalone operation. Not enough there now to build and pay off, let alone the fact that there's no water or power out there.

Parso? - Steve Parsons is at Gryphone Minerals not Azumah.


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## Sean K (20 July 2012)

Althom said:


> 2.5 years of drilling on top of the work handed over by Crew resources for ~400kozs indicated and ~260kozs inferred so reserve max 300-350kozs  - needs to at least triple for a standalone operation. Not enough there now to build and pay off, let alone the fact that there's no water or power out there.
> 
> Parso? - Steve Parsons is at Gryphone Minerals not Azumah.



Yep, and, yep.  Power and water? Pfft, who needs power and water?


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## Sean K (21 August 2012)

2nd Qtr Activities report out recently and confirmation that the DFS for Stage 1 *will be out in the 3rd Qtr*.



> Azumah's Definitive Feasibility Study (‘DFS’) on Stage One of a phased development of the Wa Gold Project is *due for completion in Q3* and is based on construction of a +1.0 million tonne per annum gravity and carbon-in-leach (“CIL”) plant producing 80,000oz-100,000oz Au per annum.
> Management is concentrating on progressing high value-adding and de-risking activities, including:
> ● delivery in the next few weeks of a maiden Mineral Reserve to underpin a Stage One development decision;
> ● completion of the DFS soon after, and
> ● securing of key project development licences and approvals.






> Planned activity in the September 2012 Quarter
> During the Quarter ended 30th September 2012, Azumah expects to:
>  Report maiden Mineral Reserves for the Wa Gold Project;
>  *Complete a Feasibility Study for the Wa Gold Project;*
> ...




By end of September.

I'm waiting with baited breath.


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## Sean K (28 August 2012)

FS out and stock caned. 

Looks as expected to me.

Maybe operating costs above what some others expected. 

Market don't like it that's for sure!


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## Althom (29 August 2012)

<30% conversion of resource to reserve - something seriously wrong there!


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## Gryphonik (2 November 2012)

found stability for the past few months, and made a murmur of pushing back up - but appears locked to .11 to .13 currently... FS absolutley belted... seems to be serious doubt this will ever get off the ground (or out of it) now...


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## Sean K (12 November 2012)

Oh dear, market has slammed them. For what? Ghana taxes? Not progressing quick enough? No trust in debt market? No new discoveries? Poor communication? Water? Looking tenuous. In the least.


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## Althom (21 November 2012)

<30% conversion resource to reserve - market expects 50-60%. Indicates insufficient drilling. Seems no focus on project development and too much focus on selling a story


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## Sean K (21 November 2012)

Althom said:


> <30% conversion resource to reserve - market expects 50-60%. Indicates insufficient drilling. Seems no focus on project development and too much focus on selling a story



And perhaps getting off track by buying into those other companies when the effort should have been on infill drilling and improving what is a known resource. I think the other factors mentioned are significant though. Maybe just bad timing. They needed something in development about 5 years ago before POG spiked.


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## Sean K (13 December 2012)

AZM really tanking. 9 cents, just keeps sliding. 2 year chart a shocker. Anyone see a potential turnaround story, or are they doomed?


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## Sean K (14 December 2012)

kennas said:


> AZM really tanking. 9 cents, just keeps sliding. 2 year chart a shocker. Anyone see a potential turnaround story, or are they doomed?



This could be one of the worst charts on the market. Thank God I bailed at the right time, when they still looked prospective. What a turkey over the past 2 years. What have they done wrong? Well, I think way too slow to get to DFS. Their Reserves were underwhelming. And, went off investing in other companies as 'strategic' investments. Just what is the relationship between Castle and Azumah? Any links to Croesus?


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## Sean K (7 January 2013)

I wonder how much of a bottom that dip to 7c was? A few strong bars over the last week or so, but no volume. I don't know how anyone has held on at these levels. They need another discovery around Bepkong I think. Otherwise they may not get there...


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## Sean K (7 January 2013)

kennas said:


> I wonder how much of a bottom that dip to 7c was?



I think I know why 7c was a 'bottom'. With 334m on issue at .07c = $23m MC. They have $16m in cash and investments that puts the delta at $7m and their 1.7m ounces at just over $4 an ounce. I guess it's oversold down there...


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## Sean K (15 January 2013)

I reckon someone let the cat out of the bag a week or so ago. Don't like leaky ships.

Resources significantly upgraded, but I don't think it was expected at this point. Maybe I've stopped following closely enough.

Still, at this time in the cycle, depending if you're gold stronger for longer, they need considerably more tonnage at these grades. Like GRY, may have missed the boat.

FS due Q2. Wasn't that due 2 years ago? 

Too slow AZM!


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## Althom (18 January 2013)

be interesting to see how much of that new resource translates to reserve. I suspect not much.


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## Althom (13 October 2016)

kennas said:


> I reckon someone let the cat out of the bag a week or so ago. Don't like leaky ships.
> 
> Resources significantly upgraded, but I don't think it was expected at this point. Maybe I've stopped following closely enough.
> 
> ...





FS still under review! Time for a change of MD


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## greggles (8 May 2018)

Huge gap up this morning for Azumah Resources after announcing "spectacular" gold intercepts at the Kunche deposit at the company's Wa Gold Project in Ghana.

The details:

• KRC831 returns continuously mineralised intercept of:
• 44m at 5.37 g/t Au from 99m (0.5g/t Au cut-off)​• Includes two high-grade zones comprising (1.0g/t Au cut-off):
• 6m at 3.33g/t Au from 99m; and
• 27m at 7.86g/t Au from 116m; incl.
• 20m at 10.27g/t Au from 120m; and
• 1m at 144g/t Au from 137m​
AZM is currently up 95.65% to 4.5c after closing at 2.3c yesterday.


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## Sean K (27 June 2019)

AZM managers look like they've been 'mining the market' as opposed to actually developing a mine. The resources are in the ground and they've been sitting on their hands for over 10 years. I was gutted that I missed that spike up to 80c but glad I didn't get stuck without a chair. The next FS is due in Q3 this year. About 10 years after the BFS was supposed to be complete. Keeping an eye on any drilling updates.


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## Clansman (27 June 2019)

kennas said:


> AZM managers look like they've been 'mining the market' as opposed to actually developing a mine. The resources are in the ground and they've been sitting on their hands for over 10 years. I was gutted that I missed that spike up to 80c but glad I didn't get stuck without a chair. The next FS is due in Q3 this year. About 10 years after the BFS was supposed to be complete. Keeping an eye on any drilling updates.
> View attachment 95767




Naming the company after Ghana's greatest ever boxer isn't exactly any sort of blueprint for success on the ASX.


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## Althom (25 September 2019)

Takeover offer in. Ibaera unlikely to proceed to development so will be interesting to see who ends up with the assets.
A lot of wasted opportunities.


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## Althom (25 September 2019)

kennas said:


> And perhaps getting off track by buying into those other companies when the effort should have been on infill drilling and improving what is a known resource. I think the other factors mentioned are significant though. Maybe just bad timing. They needed something in development about 5 years ago before POG spiked.



Feas should have been done and dusted in 2011 but instead we've just had the same quarterly one after the other - "Next quarter we'll be updating the Feasibility Study"


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## Althom (4 October 2019)

Here we go again.
"The scheduled completion of the updated Project Feasibility Study early in 2020"


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## Sean K (6 October 2019)

Althom said:


> Here we go again.
> "The scheduled completion of the updated Project Feasibility Study early in 2020"



Yep, these guys a model for the climate alarmists. Just keep putting out statements saying that in the next x number of years something will happen, but, NADA. Joke.


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## rederob (6 October 2019)

kennas said:


> Yep, these guys a model for the climate alarmists. Just keep putting out statements saying that in the next x number of years something will happen, but, NADA. Joke.



Good that you do not post in the threads to do with climate, because you never did know much about it.
On topic, AZM has very little cash, and no present financing facility, so will require a very large capital raising if it is ever to proceed.  The takeover offer gives it a chance, and often there is a subsequent small increase to the initial offer, so maybe there is fractional upside.
Not a stock I was ever interested in, but if I had shares I would be accepting the offer price.


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## Althom (16 October 2019)

kennas said:


> Yep, these guys a model for the climate alarmists. Just keep putting out statements saying that in the next x number of years something will happen, but, NADA. Joke.



Feas was 90% there at end of 2010 for a smaller project that could have provided the cashflow for ongoing exploration and expansion a la the Adamus Resources story.


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## Althom (16 October 2019)

rederob said:


> Good that you do not post in the threads to do with climate, because you never did know much about it.
> On topic, AZM has very little cash, and no present financing facility, so will require a very large capital raising if it is ever to proceed.  The takeover offer gives it a chance, and often there is a subsequent small increase to the initial offer, so maybe there is fractional upside.
> Not a stock I was ever interested in, but if I had shares I would be accepting the offer price.



Unfortunately if you'd have bought when the project was actually capable of being developed you be out of pocket by ~$0.50/share


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## Althom (19 October 2019)

kennas said:


> Yep, these guys a model for the climate alarmists. Just keep putting out statements saying that in the next x number of years something will happen, but, NADA. Joke.



Apparently the takeover offer should be rejected because of, amongst other issues;
"The role of project manager may provide Ibaera with an informational advantage regarding the potential value of Azumah Shares"
Are they actually saying that the Board hasn't kept up with what Ibaera has been doing?????


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## System (21 February 2020)

On February 20th, 2020, Azumah Resources Limited (AZM) was removed from the ASX's Official List in accordance with Listing Rule 17.4, following despatch of the compulsory acquisition notices by IGIC Pte Ltd UEN 201727890K.


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