Wa Gold Project. Ghana West Africa. Wa Gold Project, Ghana ASX AZM. Africa Dow n Under Perth September th June 2016

Transcription

1 Wa Gold Project Wa Gold Project, Ghana Ghana West Africa Africa Dow n Under Perth September 2015 AZM 20th June 2016 ASX

2 Cautionary Statement The Company has not made a production decision and its strategic plan to develop a gold mining operation is subject to the results of the completion of a Feasibility Study and other factors, some of which are beyond the Company s control. The Mineral Resources disclosed herein are preliminary in nature and include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them to be categorised as Ore Reserves. There is no certainty that the Mineral Resources disclosed herein will be realised or converted to Ore Reserves. Inferred Mineral Resources captured in optimised pits may not all be converted to Measured and Indicated Resources. Mineral Resources which are not Ore Reserves do not have demonstrated economic viability. Target, expected and anticipated numbers contained herein are not confirmed, are not JORC compliant and are indicative only. Forward-Looking Statement This release contains forward-looking information. Such forward-looking information is often, but not always, identified by the use of words such as seek, anticipate, believe, plan, estimate, expect and intend, and statements that an event or result may, will, should, could, or might occur or be achieved, and other similar expressions. In providing the forward-looking information in this news release, the Company has made numerous assumptions regarding: (i) the accuracy of exploration results received to date; (ii) anticipated costs and expenses; (iii) that the results of the feasibility study continue to be positive; and (iv) that future exploration results are as anticipated. Management believes that these assumptions are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking information.. Forward-looking information is based on estimates and opinions of management at the date the statements are made. Except as required by law, Azumah does not undertake any obligation to update forward-looking information even if circumstances or management s estimates or opinions should change. Readers should not place reliance on forward-looking information and readers are advised to consider such forward-looking statements in light of the risks set forth in the Company s continuous disclosure filings. Competent Person s Statement The scientific and technical information in this report that relates to the geology of the deposits and exploration results is based on information compiled by Mr Stephen Stone, who is a full-time employee (Managing Director) of Azumah Resources Ltd. Mr Stone is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Stone is the Qualified Person overseeing Azumah s exploration projects and has reviewed and approved the disclosure of all scientific or technical information contained in this announcement that relates to the geology of the deposits and exploration results. The scientific and technical information in this report that relates to the in-situ Mineral Resource estimates for the Bepkong and Collette deposits is based on information compiled by Mr David Williams, who is a geological consultant employed by CSA Global Pty Ltd. Mr Williams is a Member of the Australian Institute of Geoscientists and the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Williams has reviewed and approved the disclosure of all scientific or technical information contained in this announcement that relates to the Bepkong and Collette Mineral Resource estimate. The scientific and technical information in this report that relates to the in-situ Mineral Resource estimates for the Kunche and Aduane deposits is based on information compiled by Mr Dmitry Pertel, who a full-time employee (Manager - Resources) of CSA Global Pty Ltd. Mr Pertel is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Pertel has reviewed and approved the disclosure of the relevant scientific or technical information contained in this announcement that relates to the Kuncheand Aduane MineralResourceestimates. The scientific and technical information in this report that relates to Mineral Resources estimates for the Julie deposit is based on information compiled by Mr Brian Wolfe, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr Wolfe is a consultant to Azumah Resources Limited and is not an employee of the Company. Mr Wolfe has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Wolfe consents to the inclusion in the report of the Julie Mineral Resources in the form and context in which it appears. The scientific and technical information in this report that relates to Ore Reserves estimates for the Kunche, Bepkong and Julie deposits is based on information compiled by Mr Linton Kirk, an independent consultant to Azumah Resources Limited. Mr Kirk is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Kirk has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Kirk consents to the inclusion in the report of the matters related to the Ore Reserve estimate in the form and context in which it appears. The scientific and technical information in this report that relates to Process Metallurgy is based on information compiled by Mr Ian Thomas, an independent process consultant to Azumah Resources Limited. Mr Thomas is a member of the Australasian Institute of Mining and Metallurgy. Mr Thomas has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Thomas consents to the inclusion in the report of the matters related to the metallurgy, specifically the data represented in Table 3 in ASX release dated 2 September 2014, in the form and context in which it appears. 2

3 2.0Moz Mineral Resources (66% M+I) 0.65Moz Ore Reserve g/t Au LOM Completed Feasibility Study Granted Mining Leases (15 years) Excellent infrastructure incl grid power Julie West Acquired May 2016 Dominant regional position (2,800km 2 ) Recent acquisition of Julie West Project 4.4g/t Au) 19.9% of neighbour, Castle Minerals (11,000km 2 ) High-grade discovery at Manwe Pipeline of exploration targets Supportive local communities, safe, low sovereign risk jurisdiction with established mining industry 3

4 2.0Moz global Mineral Resource: (66% Measured and Indicated) 652,000oz Mining Inventory Recovery underway 4

5 Source Funds Share Purchase Plan $1,200,000 Placement $800,000 Existing Working Capital $800,000 TOTAL $2,800,000 Event Latest Manwe auger drilling results Commence RC and/or RAB drilling at Manwe Report Manwe drilling results Commence RC and/or RAB drilling at Julie West Report Julie West results Update on Project co-development partnership Schedule Imminent Late July August Early August Late August August 5

6 Issued shares 451.5M Performance Rights 15.3M Market Capitalisation (at 5.2c) A$23.5M Converting Note (Ausdrill) to end-july 2016 A$2M Cash & Listed Investments Castle (CDT) = 19.9%: ~A$1.0M Enterprise Value EV / Resource oz EV / Reserve oz $22.5M ~A$11/oz ~A$38/oz ASL Converting Note: AZM option to pay out in cash or shares. ASL can convert >5c or AZM can cause convert >7c. 8% interest. Michael Atkins - Non-Executive Chairman Corporate finance African company development Stephen Stone - Managing Director Exploration and mining geology. Corporate and management. Lived and worked in Africa Geoff M Jones - Non-Executive Director Developed mines in Africa/Ghana incl. Obotan. CEO GR Engineering Bill LeClair - Non-Executive Director Canada based - Finance and management Former CEO Guinea producer, Crew Gold Michael Atkins Geoff Jones Stephen Stone Bill LeClair 6

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8 Negotiating relief of $13M VAT levied during construction with Ghana Government plus possible royalty deferment Contractor will now supply mining fleet 8

9 Nominal Throughput 1.2Mtpa (1.8Mtpa oxide) CIL Production 600,000oz LOM +/-90,000oz pa Multiple Shallow Pits Kunche, Bepkong, Aduane, Julie, Collette Initial Mine life 7 yrs Mill grade LOM 2.14g/t Au (9.5Mt ore) Recovery LOM 91.1% Project Establishment Capital Cost (Excl sustaining and deferred capital) ~$129M (excl US$13M VAT) OPERATING COST TARGETS (Review underway): C1 Site cash costs (pre royalties) +/-$700/oz All-In-Cost +/-$1,000 All US$ LOM = Life of Mine Feasibility Study Manager and Engineers Kirk Mining Consultants 9

10 No Technical Impediments Extensive metallurgical test work Feasibility Study JORC Mineral Resource and Ore Reserve No Community Impediments Strong local support No communities to relocate Government co-operation No Permitting Impediments Mining leases granted Water permits granted EPA approvals progressing No Infrastructure Impediments Grid power Good road access Water Sealed airstrip 10

11 Grid power (161kV) to mine gate (15c kwh vs >30c kwh alternative) Powerline to mine gate 100% Government funded Water: Black Volta river Well-maintained sealed local roads. Sealed airstrip Excellent telecommunications Low sovereign risk, English language and legal system Support industries and skilled labour Black Volta River Azumah s Western Boundary New Bui Hydro Scheme 2km sealed airstrip

12 Strong community endorsement Draft Environmental & Social Impact Study submitted for comment Community and farm compensation surveys completed Continual community engagement No communities to relocate 12

13 2.0Moz global Mineral Resource: (66% Measured and Indicated) 652,000oz Mining Inventory Kalsegra Exploration Camp 13

14 Wa-Lawra Region Several new strong anomalies in Duri-Piiri region Wa East Region New targets at Manwe, Josephine, Julie Far East and Collette Plus recently acquired Julie West 14

15 11 hole, 865m first-pass RC results incl: 4.92g/t Au from 49m 2.10g/t Au from surface Infill and extension drilling has extended mineralised structure and anomaly to ~3km. More drilling planned 15

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17 The reported historical estimates are not reported in accordance with the current JORC Code. A competent person had not done sufficient work to classify the historical estimates as mineral resources in accordance with the current JORC Code and it is u The reported historical estimates are not reported in accordance with the current JORC Code. A competent person had not done sufficient work to classify the historical estimates as mineral resources in accordance with the current JORC Code and it is uncertain that following evaluation and/or further evaluation work that the historical estimates will be reported as mineral resources in accordance with the JORC Code. However, having reviewed the information upon which the historical estimates have been made Azumah has formed the view that the estimates are reliable and representative of the resources it expects to be reported under the JORC Code when Azumah completes work to bring the deposit into compliance. 17

18 Ore Reserves Mineral Resources Ore Grade Intercepts Prospects Areas of Interest Kunche Bepkong Julie Collette, Aduane, Julie West, Danyawu Josephine Main & South Kjersti, Yagha North Belandari, Yiziri, Phiiri, Duri Relay, Kunche North, Bepkong North, Eggu, Sabala, Gonggo, Danyawu, Butele, Josephine Far South, Collette West, Julie Far East, Manwe, Kjersti West Dorimon, Vapor South, Duri North, Basabli North-West, Eremon, Samoa, Kjersti East, Julie-Collette Boundary, Collette South-East, Kunche South East Based on gradient array IP & magnetics 18

19 CORPORATE: CDT: $1.4M market cap Tight capital structure: 139M issued cap and 1.05m options. Top 20 = 75% Azumah 19.9% AZM: Review of Ghana projects and tenure to reduce holding costs Will generate and evaluate new opportunities Logistics sharing opportunities offices and Ghana sites to be consolidated 19

20 11,000km 2 tenure majority adjacent to Azumah s Wa Gold Project 293,000oz combined Resources (145,000oz Indicated) Akoko: Conditional sale to Goldcrest Resources plc terminated. Other parties interested. Julie West: Sold 2015 to Bunda Resources P/L for $500,000. Azumah purchased 2016 assignment of Bunda s rights ($250,000 paid and balance payable to Castle pending licence transfer) Kpali: IM issued to seek farm-in partner. 107,200oz Inferred 1.1g/t Au). Open-ended Acquired by Azumah 20

21 The premier West African destination Multiple +10Moz discoveries No. 2 African gold producer ~3.0Moz/yr Active tier-one majors AngloGold-Ashanti, Newmont, Gold Fields, Kinross Increasing mid-tiers + juniors Golden Star, Endeavour, Perseus, Asanko, Resolute One of World s top 10 fastest growing economies English language and legal system Low sovereign risk Strong mining services and support industry 10% free carried interest. 35% corporation tax and 5% gross royalty Wa Gold Project high priority for Government 21

22 ASX: AZM Contact: Stephen Stone Managing Director Mob: +61 (0) Off: +61 (0)