AZM - Azumah Resources

[jman2007]

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]

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]

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]

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.

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

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.

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]

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.

 

[Sean K]

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.

 

[Sean K]

Not bad

Outstanding Drill Results Continue At Bepkong

Best results include:

• 38.15m at 6.62g/t Au from 30m (BRCD038), including 4m at over one ounce of gold per tonne
• 20m at 6.00g/t Au from 104m (BRC080)

West African gold explorer Azumah Resources Limited (ASX: AZM) is pleased to announce further outstanding gold intersections from the recently completed reverse circulation (RC) and diamond drilling programme at the Bepkong Prospect, located 2km north of the Company’s 516,000oz indicated and inferred Kunche resource, within its 100%-owned Wa-Lawra Gold Project in north-west Ghana.

A diamond drill core extension to BRCD038 - previously reported to have intersected 26m at 6.90g/t gold including 8m at 15.35g/t gold from 28m - has substantially increased the mineralised intersection to 38.15m at 6.62g/t gold from 30m, including 26m at 8.68g/t gold from 30m and 4m at 36.42g/t gold from 31m – over one ounce of gold per tonne (based on 1m RC and ½ NQ diamond core sample assay intervals).

Six new RC holes drilled to extend or test continuity of mineralisation and assist with geological interpretation returned some excellent intersections (Figure 1, Table 1), including:

• 20m at 6.00g/t gold from 104m - incl. 8m at 12.81g/t gold from 112m (BRC080)
• 36m at 2.42g/t gold from 76m - incl. 8m at 5.66g/t gold from 96m (BRC085)
• 52m at 1.62g/t gold from 64m – incl. 8m at 3.92g/t gold from 72m (BRC086)

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]

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

 

[Sean K]

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

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]

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

 

[Sean K]

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

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]

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.

The Metals and Energy Division of Macquarie has subscribed for 12,150,000 fully paid new ordinary shares at an issue price of 16 cents per share (based on Azumah’s 30 day VWAP - volume weighted average price) for a consideration of $1,944,000. Following the completion of the share placement, Macquarie will become Azumah’s single largest shareholder with an equity position of 13%.

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]

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.

 

[Sean K]

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]

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.

 

[Miner]

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

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.

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

 

[vegemite]

hi miner,

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

cheers, v

 

[Sean K]

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]

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]

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

West African gold explorer Azumah Resources Limited (ASX: AZM) is pleased to announce results from the first stage of metallurgical test work being conducted on samples of primary (unoxidised) mineralisation from the Kunche resource at the Company’s 100% owned Wa- Lawra Gold Project in Ghana.

Initial metallurgical results indicate that recoveries of over 90% should be obtained on typical resource-grade Kunche mineralisation using conventional gold processing technology comprising gravity separation followed by carbon-in-leach (“CIL”).

Importantly, between 25% and 40% of the gold is likely to be recoverable using a preliminary gravity separation phase, which should impact favourably on bottom line operating costs.

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.