Azumah Resources boosts resources by 45% to 1.1 million oz gold in Ghana

West African gold company Azumah Resources (ASX: AZM) has reported a 45% boost in resources at
its 100%-owned Wa Gold Project in north-west Ghana to over 1.1 million ounces of contained gold following a maiden 350,100 ounce Mineral Resource estimate for the Julie prospect.

The addition of near-surface Indicated and Inferred Mineral Resources of 4.9 million tonnes grading 2.2g/t for 350,100 ounces at Julie has added further weight to the Company’s decision to accelerate development of the Wa Gold Project to make it the first commercial-scale gold mining operation in the emerging northwest Ghana gold province.

The total Wa Gold Project Mineral Resource estimate increases to a JORC Code reported Indicated and Inferred Mineral Resource of 17.02 million tonnes grading 2.0g/t gold for 1.1 million ounces of contained gold. Nearly 60% of resources are now in the JORC Indicated category.

The Julie resource also contains in two, near-surface high-grade zones 1.8 million tonnes grading 3.57g/t gold for 211,000 ounces (2.0g/t gold cut-off).

“Passing the important one million ounce milestone is a tremendous development and highlights the outstanding exploration upside within our extensive 3,100 square kilometre licence area of which we have only realistically explored in any detail less than 10%,” said Azumah’s Managing Director, Stephen Stone.

“The maiden 350,100 ounce resource at Julie is estimated only to 80m vertical depth and is very much open in all directions. Plus, we are waiting on final results from recent drilling to extend Julie and the nearby Collette mineralisation for which we will also release a maiden resource estimate by June,” he added.

“We are discovering many new mineralised quartz veins in the Julie - Collette region and these have returned some rock chip samples grading up to six ounces gold per tonne, so there is clearly a lot of opportunity to increase resources here.”

Azumah remains on track to complete by the end of calendar 2010 a Feasibility Study based on a 1.0Mtpa gold project producing an initial 70,000 ounces gold per annum, but with the capacity to grow to +100,000 ounces gold per annum.

http://www.proactiveinvestors.com.au/companies/news/5919/azumah-resources-boosts-resources-by-45-to-11-million-oz-gold-in-ghana-5919.html