AZM - Azumah Resources
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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.
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.
Sean K
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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.
Sean K
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Did I just read that they'd done a placement at 40c? 
Is that supposed to read 50c?
Maybe just a typo.
Is that supposed to read 50c?
Maybe just a typo.
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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.
Sean K
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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.
Sean K
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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.
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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Sean K
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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.
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
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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
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
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.
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.
Sean K
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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.
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
********************
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
********************
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.
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.
