AZM - Azumah Resources

[psychic]

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

 

[Sean K]

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.

 

[Sean K]

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.

 

[Sean K]

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.

 

[shag]

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.....

 

[jman2007]

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

 

[Sean K]

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)
3m @ 2.33 g/t gold from 1m (JWRC 65)
4m @ 1.48 g/t gold from 4m (JWRC 69)

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!!

 

[Sean K]

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.

 

[Sean K]

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

 

[shag]

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.

 

[Sean K]

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.

 

[Miner]

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!!

xxxxxxxxxxxxx

POG should be back in favour.

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

 

[jman2007]

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

 

[Sean K]

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!!

 

[Sean K]

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...

 

[Sean K]

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.

 

[Sean K]

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%.

AZUMAH 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.

 

[Sean K]

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.

 

[Sean K]

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.

 

[Sean K]

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