Sean K
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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%.
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.
“With a current market capitalisation of less than A$12 per resource ounce, Azumah is extremely cheap on a fundamental and peer comparison basis,” Mr Stone continued. “That does not include the discovery just made at Bepkong and the other 100km of largely under-explored greenstone belt where we have a growing pipeline of soil anomalies to test.”
“We are confident that we will achieve our next objective of delineating a 1,000,000 ounce gold resource, which will enable us to look seriously at the possibility of a stand-alone, open-cut mining operation,” Mr Stone continued. “We have had some excellent near-surface gold intersections lately but the stock market correction followed by the Opes Prime collapse have taken their toll on the share price.”
Recent drilling at the Wa-Lawra Project has provided significant exploration success, with best drill results including 16m @ 4.9g/t gold from 50m and 32m at 3.62g/t gold from surface (from the Bepkong prospect); 6m @ 7.33g/t gold from 5m and 7m @ 3.95g/t gold from 10m (immediately east of Kunche); and 8m @ 9.35g/t gold from surface, including 2m @ 34.0g/t gold from 6m (from the Kunche East prospect);
RC and RAB drilling programmes will recommence at Wa-Lawra in a few weeks with the aim of delineating an initial JORC compliant resource at Bepkong and testing for possible northern and southern extensions, following-up mineralisation recently identified at Basabli and investigating new targets.
Up 30% after this news. On small volume, but they only have a few on issue.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.
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.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.
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.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.
I'm interested in this for 3 reasons: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.
“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.”
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 penniesYou 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)
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.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
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 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.
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!!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!!
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.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
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.
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.
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
West African gold explorer Azumah Resources Limited (ASX: AZM) is pleased to advise that it has received outstanding results from the current drilling campaign at the Bepkong Prospect, located 2km north of the main 516,000oz Kunche resource at its 100%-owned Wa-Lawra Gold Project in Ghana.
The results from Reverse Circulation (RC) drilling have extended and confirmed a zone of coherent high-grade gold mineralisation at Bepkong that will form the basis for an initial JORC Code compliant resource estimate scheduled for August 2008.
Intersections based on 4m composited samples include:
26m at 6.90g/t gold from 28m - incl. 8m at 15.35g/t gold from 28m
40m at 3.45g/t gold from 4m - incl. 20m at 5.45g/t gold from 4m
48m at 2.39g/t gold from 64m - incl. 32m at 3.25g/t gold from 76m
28m at 3.31g/t gold from surface - incl. 8m at 9.47g/t gold from 12m
24m at 2.04g/t gold from 56m; and
60m at 1.42g/t gold from 16m.
“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
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