Ghana – This adds valuable inventory that strengthens the prospects for development of its Wa gold project and provides Azumah with an unrivalled landholding in Ghana’s Upper West region.
The 100% owned Julie West prospecting licence is adjacent to Azumah Resources own 834 000 oz Julie deposit and hosts the high-grade 56 200oz Julie West prospect (415 000 t at 4.2 g/t gold) and the 12 800 oz Danyawu prospect (72 100t at 5.5 g/t gold), 2 km to the north west.
These prospects will be integrated into Azumah Resources advanced plans for the development of the initial seven year, 90 000 ozpa Wa project for which a 2 Moz mineral resource has already been delineated, a 652 000 oz mining inventory confirmed, a feasibility study completed, mining licences granted (including for the Julie deposit) and for which most key infrastructure including grid power is in place.
GR Engineering Services will shortly complete a formal review of the establishment capital costs for the Wa project which is anticipated to see a material lowering of the required development funding.
Azumah Resources discussions with mainstream project financiers and also with several possible corporate partners are progressing well. These have been assisted by the recent firming of the gold price and the improved market sentiment towards gold developers and producers.
“The acquisition of Julie West will add important high-grade resource ounces and boost the mining inventory of the Wa gold project,” Azumah Resources MD Stephen Stone says.
“The 146 km² Julie West prospecting license is underexplored with several targets already earmarked for evaluation which with the recent Manwe discovery by Azumah Resources highlights the region’s excellent prospectivity.”
The Julie West PL was first granted in June 2010 to Newmont Ghana Gold Limited (NGGL). Castle Resources local subsidiary Carlie Mining acquired the licence from NGGL in 2013 and whilst shown on government tenure maps as the owner, formal documentation is still being processed.
The Julie West resource is located 4.5 km west and along strike of Azumah Resources existing Julie deposit in the Wa East region of the Wa gold project. Together with the Danyawu and the low-grade Koda mineralisation are proximal to the regionally important and prospective Baayiri fault which transcends the Julie West PL for ~8km.
[quote]The additional resources at Julie West will increase overall resources at Wa East to ~1.0 Moz and to 50% of Azumah Resources total mineral resources. The Castle resource estimates for Julie West (completed by Runge Limited) and for Danyawu (completed by RungePinockMinarco) are JORC 2004 compliant.
Azumah Resources will re-estimate resources to JORC 2012 compliance.
Castle Mining Study
Castle undertook a study for a heap leach operation at Julie West and subsequently submitted a mining lease application. Mineralogical and metallurgical extraction studies by Castle included gravity and column leaching test work at the laboratories of AMMTEC, Perth.
Azumah Resources does not intend to pursue a stand-alone heap leach option and will instead integrate Julie West into its broader plans for a conventional CIL recovery operation based at Kunche.
A work programme has been developed for the Julie West PL which includes:
- Review and incorporation of all exploration datasets, geology and regolith mapping plus reconnaissance auger sampling to comprehensively evaluate the entire licence with closer-spaced auger sampling in vicinity of any anomalous auger samples obtained in order to define new RC drill targets;
- Update of the current resource estimates to JORC 2012 compliance;
- Technical studies to determine the impact of JORC 2012 mineral resources on overall project ore reserves and economics; and
- Application to MINCOM for the transfer of the Julie West PL direct to Phoenix and incorporation of Julie West and Danyawu into an extended Julie Mining lease.