for personal use only - asx · prospect, 4km northeast of the duri granite. piiri lays slightly...

Systematic 2,500-hole auger campaigns generate exploration breakthroughs

Brownfields auger drilling extends existing anomalous trends and defines new RC drilling targets including Julie Far East where up to 9.3g/t Au in rock chips obtained

Greenfields campaigns generate new anomalies including 5km trend at Duri with up to 3.7g/t Au in rock chips from nearby Piiri prospect

All new targets within trucking distance of proposed Kunche plant

Results reinforce prospectivity of the Wa Gold Project and the opportunity to increase Mineral Resources to underpin development

Follow-up infill auger programmes planned and/or commenced at Duri, Piiri, Yagha, Basabli Northwest, Bepkong North and Butele in the Wa-Lawra belt

Infill and extension programmes planned and/or underway at Julie Far East, Madam’s Farm, Collette and Josephine in the Wa East area

RC drilling planned at Kunche Footwall, Kunche North, Yagha, Josephine East and Collette

Joint Azumah, CSIRO and SGC initiative reprocesses and enhances legacy EM data

“These results highlight that combining our rigorous exploration approach with the Wa Gold Project’s underlying prospectivity continues to deliver new targets to underpin our track-record of delivering increases in Mineral Resources and Ore Reserves to support development.” Azumah Managing Director, Stephen Stone said. Perth-based gold explorer and developer Azumah Resources Limited (ASX:AZM) (“Azumah” or “the Company”) advises that exploration at its Wa Gold Project, northwest Ghana, West Africa (the “Project”) has generated multiple new geochemical anomalies, extended existing anomalous zones and refined several targets for RC drilling. Recent low-cost, truck-mounted power auger geochemical sampling (‘auger’) campaigns totalling 2,500 holes in mainly soil and laterite covered terrain have generated anomalous extensions to existing mineralised trends at Kunche Footwall, Kunche North, Bepkong North, Julie Far East and Collette with testing by RC drilling the next stage of evaluation. They have also identified new focus areas of broad anomalism including a 5km anomaly at Duri with others at Piiri, Basabli Northwest and Yagha.

ASX & Media Release

ASX Code – AZM 12th March 2015

www.azumahresources.com.au

Investment Highlights:

Wa Gold Project:

• 2.0Moz Mineral Resource including 1.3Moz Measured & Indicated

• 624,000oz Ore Reserves at 2.14 g/t plus 28,500oz ‘mining inventory’

• Feasibility Study nearly completed

• Initial 7yr mine-life at +/- 90,000oz pa

• Excellent Infrastructure (grid power, water, established roads, airport)

• Mining Leases granted

• 2,800km2 licenses with >150km strike of prospective Birimian terrain.

• 15% strategic investment in neighbour, Castle Minerals Limited (~10,000km2)

• Board and management team of successful explorers, mining and corporate professionals

Issued Capital: 393.850M ordinary shares 6.075M performance rights

2.0M $1.00 Converting Notes Directors & Management: Chairman:

Michael Atkins

Managing Director: Stephen Stone

Non-Executive Directors: Geoff M Jones Bill LeClair

Company Secretary: Dennis Wilkins

Contact:

Stephen Stone Mb: +61 (0) 418 804 564 [email protected]

New Gold Anomalies Confirmed For Immediate Follow-Up

Wa Gold Project, Ghana

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http://www.azumahresources.com.au/

Azumah Resources Limited – Exploration Update – March 2015

Systematic exploration the key to discovery in covered terrain

Azumah has established an excellent track-record of growing Mineral Resources. When it acquired the Project the Kunche target was an isolated, small outcropping anomaly within the Company’s extensive tenure encompassing over 110km north-south strike of prospective Birimian terrain - the same rocks that host most of West Africa’s major gold deposits. Kunche has since been developed into a 751,000oz Mineral Resource.

The ‘blind’ 245,000oz Bepkong discovery, 2km north of Kunche, and several other smaller but similarly obscured satellite deposits such as the 85,000oz Aduane Mineral Resource provide strong encouragement that other orebodies will be discovered to add to the 2.0Moz Mineral Resources and 652,500oz Mining Inventory that Azumah has already delineated (Tables 1 and 2).

The broad expanse, lack of outcrop, regolith complexity and already identified widespread anomalism create challenges as well as enormous opportunities that require a rigorous, systematic approach to exploration. Along with its counterparts in the region, including those in Burkina Faso, Mineral Resources of ~5Moz have now been discovered and there is undoubtedly much more to be identified.

Azumah’s high-resolution aeromagnetic survey data plus remote sensing information and other regional datasets provide a backdrop for its exploration strategy. Areas of broad interest or known anomalism are then field assessed, mapped, ranked and where warranted subjected to several phases of auger sampling before being recommended for aircore and/or RC drilling.

WA LAWRA REGIONAL

Duri

The Duri region, 30km north of Kunche, is now a primary target area following the delineation of several anomalies including an almost continuous ~5km long, >10ppb Au anomaly with better results including 1,512ppb Au, 246ppb Au, 230ppb Au and 133ppb Au (Figure 1).

The success at Duri follows a review of historical and recent exploration work and the recognition that the interpreted geology and likely ‘relay’ structure (Note 1) has many similarities to the Kunche-Bepkong area where combined Mineral Resources of 996,000oz and Ore Reserves of 422,000oz have been defined.

Mapping Auger drilling

Handheld multi-spectral analysis

RC / core drilling

RAB / aircore drilling

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Multiple anomalies were identified by a wide-spaced reconnaissance auger programme and were subsequently confirmed in late 2014 by an infill programme on a 400m line x 50m hole spacing.

Results from a recent 135 hole 200m/100m line x 50m hole spaced infill programme are awaited and are expected to further define mineralised trends and continuity in preparation for RC drilling.

A 240 hole auger geochemistry and regolith mapping programme(Note 2) is planned to commence shortly at the Piiri prospect, 4km northeast of the Duri Granite. Piiri lays slightly closer to the regionally important Jirapa fault and is at a relatively early stage of investigation. Recent mapping has confirmed phyllites and arenites with concordant and semi-concordant quartz veining in a geological setting again similar to the Kunche-Bepkong trend. Whilst the regolith is quite variable there are numerous outcropping veins which are re-fractured and multiphase in places and in some cases comprise smokey quartz similar to that seen at the Kunche deposit. Scattered boxwork textures(Note 3) are also observed within the veins where recent reconnaissance rock chip sampling has returned encouraging values including 1.31g/t Au and 3.67g/t Au.

Figure 1: Duri Region Geology and Anomalous Zones

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Yagha

A 217-hole auger programme at Yagha, 7km north of Kunche, has outlined a north-south trending 3.5km by 0.5km zone of anomalism with a peak value of 853ppb Au and it extended geochemical anomalies from a wide-spaced pre-Azumah surface soil sampling programme where values of up to 431ppb Au were obtained. Logging of the auger holes has also confirmed that the underlying geology is analogous with the Kunche-Bepkong host rocks.

Further auger drilling is proposed to test for extensions of these anomalies which, if successful, would then progress to an aircore and/or RC programme.

Basabli Northwest

A 146-hole reconnaissance auger programme consisting of 7 fences of 800m-1000m line x 50m hole spacing at Basabli Northwest, 42km north-northwest of Kunche, delineated a weak gold anomaly on 3 of the 7 fences. Peak values of 35ppb Au, 32ppb Au and 10ppb Au are coincident with a supporting arsenic anomaly (arsenic is a proven gold ‘pathfinder’ element in the region). Follow-up auger drilling is planned.

Butele

At Butele, 30km south of Kunche, a 15km strike sequence of prospective Birimian metasedimentary rocks is interrupted by a granite which contains small artisanal workings within and at the granite margin. Azumah drilling under the workings returned intercepts of 1m at 19g/t Au and 1m at 1.2g/t Au whilst rock chip sampling along veining returned 11.5g/t Au, 7.8g/t Au, 8.2g/t Au, 3.4g/t Au and 3.0g/t Au. The prospect area is predominantly covered with mainly transported soils bringing into question the validity of historical surface soil sampling(Note 2) results. Azumah will shortly commence a wide-spaced auger programme as a first stage of the re-evaluation of this interesting area.

KUNCHE-BEPKONG BROWNFIELDS

There continues to be good opportunities for exploration to add incremental ounces to the existing Minerals Resources and Mining Inventory in the immediate vicinity of the Kunche and Bepkong deposits (Figure 2).

Kunche Footwall

The 50-hole, 8 fence Kunche Footwall auger programme successfully achieved its aim of confirming a north-south trend of anomalism immediately adjacent to the western edge of the Kunche pit. To its south, the anomaly has already been tested by step-out RC drilling but remains untested at depth as it trends towards the Kunche North target. An RC drilling programme is planned.

Kunche North

The 40-hole Kunche North auger programme targeted a poorly tested gradient array induced polarisation survey (GAIP) ‘resistivity ridge’ and delineated a narrow north-northwest trending +50ppb Au (max 144 ppb Au) anomaly in shales and siltstones for which follow-up RC drilling is warranted.

Bepkong Northwest

The 95-hole Bepkong Northwest programme targeted a left-stepping relay structure trending away from the main Bepkong mineralisation. The relay structure is interpreted from a GAIP survey over the Kunche-Bepkong mineralised corridor. The programme was undertaken during the wet season in 2014 and the far north extension was not adequately covered due to wet holes denying samples at the target saprolite horizon. Those holes that did reach target depth returned up to 87ppb Au and, whilst the anomaly is discontinuous, a return programme is planned.

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Figure 2: Kunche-Bepkong Brownfields Auger Programmes

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WA EAST BROWNFIELDS AND REGIONAL

Julie Far East, Julie Far West and Madam’s Farm

The 161-hole Julie Far East auger programme has confirmed a 700m northeast - southwest trending >10ppb Au anomaly open to the northeast with a peak value of 2.94g/t Au in an intensely sheared monzodiorite with brecciated quartz veins and pyrite alteration. The programme was designed to test for extensions to anomalism associated with a small area (250m x 100m) of artisanal workings ~1.2km east of the proposed Julie pits as well as historical soil sample based anomalism in the area where patchy +25ppb Au anomalies were identified peaking at 510ppb Au (Figures 3 and 4). A rock chip sample collected from quartz stringers within monzodiorite at the workings returned 9.3g/t Au.

Importantly, the workings expose the contact between tonalite and monzodiorite intrusives, the same contact closely associated with the 834,000oz Julie Mineral Resource. The workings also show potassic altered monzodiorite containing a milky quartz-carbonate-tourmaline vein that is 0.7m wide with sulphide boxworks textures after pyrite (Note

3). Gold mineralisation in the region is closely associated with pyrite.

A follow-up auger programme is planned to test for a northeast extension to the anomaly and, if successful, RC drilling will be undertaken.

At Madam’s Farm, 5km west-northwest of the Julie deposits, five 50m x 2m deep trenches were dug to investigate a late north to northeast structure crosscutting the main east-west mineralised Julie shear zone trend (refer photo). All of the trenches contained a highly sheared basalt in contact with granite. Three of the trenches contained quartz and quartz veins 0.5m to 4m wide all of which returned anomalous gold values including 4m at 1.32g/t Au. The alteration mineral assemblage within the quartz lodes contained boxwork pyrites whilst the wallrocks showed silicification and calcite. Follow-up mapping and auger sampling is planned and subject to results, RC drilling.

A 117-auger hole and 38 soil sample programme at Julie Far West was designed to test for a possible fault-offset western extension of the Julie shear zone that hosts the Julie deposit. Sampling was undertaken beneath a thin cover of transported soils overlying tonalite and monzodiorite whose contact is marked by a north dipping thrust fault and is interpreted to be the same structure that hosts the Julie mineralisation. Whilst some gold values were obtained up to a maximum value of 29ppb Au no coherent anomalous trend was identified and the prospect is now reclassified as low priority.

Figure 3: Wa East Licences, Deposits, Prospects and Auger Programmes

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Figure 4: Julie Far East Geology and Anomalous Zones

Collette

A series of auger campaigns totalling 652 holes, undertaken to test areas of interest in and around the 79,000oz Collette Mineral Resource, has confirmed several east-west trending anomalies peaking at 360ppb Au. Most of the anomalies require follow-up infill sampling and/or RC drilling. Logging of the auger holes identified highly sheared metasedimentary rocks with occasional quartzite and granite all of which point to a favourable lithological-structural sequence to add incremental ounces to the existing Collette deposit for which a preliminary pit for mining has been optimised.

Josephine East and Josephine North West

The Josephine prospecting licence is at a relatively early stage of exploration but recent work and increasing galamsey workings at several locations highlight the prospectivity of the area (refer photo). Most mineralisation is closely associated with well defined structures observed in Azumah’s high-resolution aeromagnetic data (Figure 5).

At Josephine East sampling targeted horsetail-type structural features associated with the Jang Fault, 1km southeast of the main Josephine mineralisation, and has identified a 600m northeast trending anomaly which is deemed to be an extension of the Josephine South structure. The area is structurally complex with structures trending east-west and northeast-southwest. Outcrops in the area contain localised disseminated arsenopyrite within metasediments some 800m east of active galamsey workings that extend for 830m. Rock chip sampling under sandy transported cover around the workings returned up to 2,430ppb Au (2.4g/t Au).

A 290 hole power auger programme produced results of up to 127ppb Au close to the workings as well as lower grade but continuous 20ppb Au to 40ppb Au results on a northeast trend toward the galamsey activity. Subsequent to further geological mapping and understanding of the anomalies, the target is earmarked for future RC drilling.

The 112 hole Josephine Northwest auger programme, 1.3km north west of the main Josephine workings, focused in and around a zone of galamsey workings with mapping identifying them to be hosted by mica schists. Whilst some low-order gold values were returned, no distinct anomalous gold trend was delineated and the area has been downgraded.

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Figure 5: Josephine Far East Geology and Anomalous Zones

Josephine East: Artisanal miners burn logs to fracture a mineralised quartz vein

Madam’s Farm: Sampling of trench

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CSIRO Reprocessing of Existing EM Dataset A joint initiative between Azumah and CSIRO with follow-up processing support by Southern Geoscience Consultants has reprocessed into 3D imagery data from a 2003 13,500km line kilometre, 290 flight line airborne electromagnetic survey undertaken by the Geological Survey of Finland.

Outputs comprising conductivity distributions on sections and on a series of depth slices provide indirect targeting support for existing structural, lithological and regolith interpretations at the regional and prospect scale and interactive analysis with other datasets such as aeromagnetics, Induced Polarisation surveys and geochemical results.

The GTK AEM system is now dated and the outputs do not compare with today’s high powered but costly time domain EM systems. However, the work by Azumah allows the extraction of new and useful imagery from an existing free dataset consistent with Azumah’s present focus on low cost, high impact exploration work.

Note 1: Relay zones comprise series of faults where the resulting displacement can create sites of dilation and other conditions favourable for the migration and localisation of mineralising fluids.

Note 2: Regolith sampling at the Project: The unconsolidated surface material covering the solid rocks below is called the regolith and understanding it and how to sample it is critical to successful exploration. It can have a complex origin and developed stratigraphy that is not always representative of the primary rocks immediately below. Unlike much of the Western Australia Goldfields weathering at the Project is shallow and there is minimal dispersion of the gold into the supergene environment and regolith from the primary source to create broad targets. This means that geochemical signatures for primary orebodies are confined and harder to detect. Once areas of interest have been identified, appropriately designed phased sampling programmes using Azumah’s truck-mounted power auger rigs become an important exploration tool allowing samples to be taken not from the surface where their validity would be questionable but from as close as possible to the interface with the primary rock called the saprock or saprolite horizon.

Soil /Humus (~30cm)

Alluvium (~20cm)

Stone line (~20cm)

Trench exposure showing regolith profile Quartz vein fragment with pyrite and boxworks

Saprolite (>40cm)

Note 3: Boxworks are angular relict textures in rocks and veins formed after the dissolution by weathering processes of minerals, often sulphides, and can be indicative of mineralisation or a mineralised environment. Gold mineralisation at Julie is closely associated with pyrite.

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For further information on Azumah Resources Limited and its projects please visit its website at www.azumahresources.com.au

Stephen Stone Managing Director Tel: +61 (0)418 804 564 [email protected]

Nathan Ryan – Australia NWR Communications +61 (0)451 896 420 [email protected]

Joanna Longo – North America Terre Partners +1 416 238 1414 [email protected]

About Azumah

Azumah Resources Limited is a Perth-based, ASX-listed (ASX: AZM) company focused on exploring and developing its Wa Gold Project in the Upper West Region of Ghana, West Africa.

Three main deposits have been discovered and extensively drilled at Kunche and Bepkong, adjacent to the Black Volta River and Ghana’s border with Burkina Faso, and at Julie ~80km to the east. Several satellite deposits, including Aduane and Collette, have also been delineated.

To date the Company has defined a JORC Mineral Resource of 2.0Moz of gold grading 1.5g/t Au including 1.3Moz Measured and Indicated grading 1.6g/t gold with these evenly distributed between Kunche-Bepkong and Wa East (Julie & Collette).

Mineral Resources have grown progressively through systematic exploration of the Company’s 2,800km2 licence holdings which encompass large tracts of prospective Birimian terrain, the rocks that host the majority of West Africa’s gold mines. Azumah anticipates Mineral Resources will continue to grow through the systematic testing of its pipeline of specific targets, prospects and many areas of interest.

Azumah is currently completing a Feasibility Study for a mining operation based on an initial seven-year life and producing ~90,000oz Au per year from the open pit mining and treatment of ore through a nominal 1.2 million tonnes per year carbon-in-leach (CIL) processing plant (1.8Mtpa treating softer oxide material). The plant will be located adjacent to the Kunche deposit and incorporate a flotation and regrind circuit to treat Julie primary and some transitional ore which will be hauled by road to the processing plant.

A JORC Ore Reserve of 624,000oz Au (9.1Mt at 2.14g/t Au) has been defined based on recent studies. With the addition of Inferred mineralisation contained in designed and optimised pits the total Mining Inventory is 652,500oz gold. Extensive metallurgical test work has been undertaken to confirm a high average overall gold recovery of ~92% for the Kunche, Bepkong and Julie deposits.

Azumah has had two 15-year Mining Leases granted over its key deposits (Ghana government holds a 10% free carried interest in their ‘rights and obligations’ and is also entitled to a 5% gross gold royalty) and is now moving to obtain environmental operating permits necessary to allow development to proceed.

No technical, social or environmental impediments to development have been identified and there is strong support from stakeholders for the Project. Whilst the region has no other major industry, the Project benefits from excellent regional infrastructure including grid power to site, good quality bituminised and non-bituminised roads, good access to water, a sealed airstrip at the regional centre of Wa and good general communications.

Key investors in Azumah include Macquarie Bank (Metals & Energy Capital Division), mining services group Ausdrill Limited and Caitlyn Limited which is associated with Emirates based gold refiner Fujairah Gold FZE, a wholly owned subsidiary of global mining group, Vedanta Resources plc. Azumah itself holds a 15% interest in its neighbour and junior Ghana explorer, Castle Minerals NL which has 10,000km2 of licences adjacent to Azumah.

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http://www.azumahresources.com.au/

mailto:[email protected]




Wa Gold Project – Key Deposits and Prospects

Wa Gold Project – Key Prospects, Targets and Areas of Interest

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Table 1: Ore Reserves Summary - August 2014

Ore Reserves Summary (As at

August 2014)

Proved Probable Total Gold To Mill

Tonnes (Mt)

Grade g/t Au

Tonnes (Mt)

Grade g/t Au

Tonnes (Mt)

Grade g/t Au Oz Au

Kunche 4.91 1.92 0.05 3.11 4.97 1.94 309,000

Bepkong 1.79 1.84 0.11 1.97 1.90 1.85 113,000

Julie 0.29 2.45 1.93 2.89 2.21 2.84 202,000

Total 7.00 1.92 2.09 2.85 9.08 2.14 624,000

Values have been rounded

NB: The Ore Reserve excludes 28,000oz gold deemed ‘Mining Inventory’

Table 2: Mineral Resource Estimate - August 2014

Cut-off Measured Indicated Inferred Total 0.5 g/t Au Tonnes

(M) Grade g/t Au

Gold Oz

Tonnes (M)

Grade g/t Au

Gold Oz

Tonnes (M)

Grade g/t Au

Gold Oz

Tonnes (M)

Grade g/t Au

Gold Oz

Kunche 8.42 1.73 468,000 2.24 1.38 99,000 4.86 1.17 183,000 15.52 1.50 751,000

Bepkong 2.22 1.79 128,000 1.70 1.33 73,000 1.17 1.17 44,000 5.09 1.49 245,000

Aduane 1.77 1.50 85,000 1.77 1.50 85,000

Julie 0.89 1.44 41,000 10.06 1.57 507,000 5.98 1.49 286,000 16.93 1.53 834,000

Collette 1.69 1.45 79000 1.69 1.45 79,000

Total 11.52 1.72 637,000 14.00 1.51 679,000 15.47 1.36 677,000 40.99 1.51 1,994,000

Values have been rounded

Competent Persons’ Statements

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 Kunche and Aduane Mineral Resource estimates.

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

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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 2nd September 2014, in the form and context in which it appears.

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.

Continued:

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Appendix 1: Wa Gold Project - JORC Code 2012 Edition – Table 1 Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary

Sampling techniques

Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

The sampling described in this report refers to samples from power auger drilling, rock sampling and trenches.

For the Auger drilling, the thickness of the regolith horizons were recorded, with samples from each layer screened with a hand-held XRF analyser in the field. Approximately 1-2kg of sample was collected by scoop from the drill spoil piles from the bottom of the hole, which was the interface between the regolith and weathered bedrock. Drill holes which did not penetrate the transported cover were not sampled.

The bottom of hole samples from the auger programmes listed below were sieved with a 200 micron sieve, with the minus fraction being sent to Intermin laboratory in Tarkwa using aqua regia digestion with AAS detection (AR50) with a detection limit of 1ppb Au.

• Julie Far West (155 holes for 822m)

• Collette SE (259 holes for 675.6m)

• Basabli NW (146 holes for 1107.5m)

• Josephine NW (112 holes for 652.5m)

• Yagha N-S (217 holes for 1037.5m)

The bottom of hole samples from the auger programmes listed below were sent to SGS laboratories in Tarkwa for bleg analysis BLL61N, using cyanide extraction of a 2kg bulk sample with ICP-MS finish, with a detection limit of 1ppb.

• Bepkong NW (95 holes for 231.5m)

• Collette (393 holes for 1416.5m)

• Duri (537 holes for 2510m)

• Josephine E (290 holes for 786m)

• Julie Far East (161 holes for 352m)

• Kunche (90 holes for 314m)

Rock samples are collected by hand as grab samples of potentially mineralised outcrop. Approximately 1-2kg of sample was collected and sent as a whole to the laboratory for analysis.

Rock samples collected before 29/04/2014 were sent to Intermin in Tarkwa for gold analysis by aqua regia with AAS finish with a detection limit of 1ppb (AR50/AAS). Those collected after 30/04/2014 were sent to SGS in Tarkwa for gold analysis by fire assay with AAS finish, with a detection limit of 0.01ppm (FAA505).

Five hand dug Trenches were excavated by AZM to depths of 1m, 1.5m or 2m. The trench walls were geologically and structurally mapped and sampled at 2m intervals, or 1m intervals in areas of observed

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mineralisation. Approximately 2kg of sample was collected along a continuous chip channel on both walls and the floor of the trenches. All samples were screened with the hand held Innov-X XRF analyser. Samples were sent to SGS in Tarkwa for gold analysis by fire assay with AAS finish, with a detection limit of 0.01ppm (FAA505).

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information

Appropriate quality assurance/quality control (QAQC) protocols were followed, including submission of field duplicates and insertion of commercial standards for all types of sampling. Field duplicates, certified standards and blank samples were inserted at a ratio of 1:50 samples. Sample preparation at the laboratory included:

• Drying the sample at 105oC for 4 hours. • Crushing the sample to less than -6mm (if

required). • Splitting the sample using a riffle splitter.

Pulverising the sample for 4 minutes to achieve 85% of sample passing -75μm in grain size.

Drilling techniques

Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

All auger holes were drilled using an Azumah owned and operated landcruiser mounted power auger fitted with a standard auger blade bit and auger flutes, up which the sample travels to the surface. All auger holes were vertical and targeted the lower saprolite/upper saprock.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Provisions are made to log sample recovery and quality by the geologist on site.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

The trained drilling and sampling crew limit the sample loss and wall contamination through careful rotation of the auger bit and flutes, resulting in acceptable sample recovery and clear differentiation of lithology horizons.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Sample recovery was the same for all samples.

Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resources

Auger drilling, trenching and rock samples are not used in Mineral Resource Estimation.

However, all samples were logged geologically and have been incorporated into the Azumah Resources database.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

All logging was done in a qualitative nature, and photographs taken of all drill spoils and trench walls.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

Auger samples were collected by scoop from the drill spoil piles.

Trench samples were collected by scoop from a continuous channel sample.

Samples were generally dry.

Sub-sampling techniques and sample preparation

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Samples were collected in the field by scoop. The entire sample was sent for analysis, so no sub-sampling was required.

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Samples were crushed to -6mm and riffle or cone split to obtain a representative fraction. Samples were then dried and ground to 85% passing 75 microns using laboratory mills for FAA505 of BLL61N analysis.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Field QA/QC procedures included insertion of field duplicates and commercial standards for auger and trench drilling. Standards, duplicates and blanks were inserted in every batch (1 per 50 samples).

Laboratory QA/QC procedures included:

• Every 50th sample was screened to check grinding results (% passing 2mm and 75 microns).

• 1 reagent blank was inserted every 50 samples, 1 preparation process blank was inserted every 50 samples and 1 weighed replicate was inserted every 50 samples.

• 1 preparation duplicate (re-split) every 50 samples and 2 certified reference materials (CRMs) every 50 samples.

Repeat analyses are completed whenever an analytical batch fails to meet the laboratory standards or when requested by a client.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling

Duplicate samples are taken for all drilling and trenching. The duplicate versus original sample results is considered satisfactory.

Whether sample sizes are appropriate to the grain size of the material being sampled

Sample size is considered appropriate.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

The rock and trench samples were analysed using fire-assay with an atomic-absorption finish (FAA505) which is industry standard for Au. The detection limit was 0.01ppm, which is appropriate for mineralised samples.

The auger programmes conducted before May 2014 (listed above) were analysed by aqua regia digestion with low level Au AAS finish, which is considered appropriate for geochemical sampling.

The auger programmes conducted after June 2014 (listed above) were analysed by cyanide extraction of a bulk 2kg sample, with low level Au AAS finish, which is considered appropriate for geochemical sampling.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

All samples were analysed using a hand held Innov-X XRF analyser, however this data is qualitive, and for exploration purposes only and would not be used for Mineral Resource Estimation.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

Field QA/QC procedures included the insertion of field duplicates, blanks and commercial standards.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

All assay results were received electronically from the laboratory and digitally merged into the database.

The use of twinned holes. Twinned holes are not practised in auger drilling or trenching.

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Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Field data was all recorded as hard copies. Geological logging and sample intervals were recorded in digital form using a logging computer or Excel templates. This data was imported into a SQL database for validation and QC. The analytical data was imported into SQL database with all related metadata and QA/QC information.

Discuss any adjustment to assay data. No adjustments were made, other than for values below the assay detection limit. These values have been entered as the negative of the detection limit.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

The collar, trench and rock locations of all holes were initially surveyed using a hand-held GPS (accurate to ±2m).

Specification of the grid system used. The grid system is WGS84 Zone 30 North.

Quality and adequacy of topographic control. The topographic surfaces of all properties were created using a GeoEye image and Digital Surface Model. This was corrected and validated using DGPS drill hole points collected in the field.

Data spacing and distribution

Data spacing for reporting of Exploration Results. Auger holes were drilled 50m apart, with line spacing between 50m and 800m.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Auger drilling and trenching is not used in Mineral Resource Estimation.

Whether sample compositing has been applied. Trench samples were either 1m or 2m composites.

Auger samples were single point samples from the bottom of hole.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

The trenches and auger fences were designed perpendicular to the targeted structure.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

No orientation based sampling bias has been identified in the data based on the interpreted mineralised structures.

Sample security The measures taken to ensure sample security. Chain of Custody is managed by Azumah staff (geologists and technicians). Samples are stored on site and delivered to the SGS Laboratory at Tarkwa. Samples submission sheets are in place to track the progress of every batch of samples.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

Sampling techniques are consistent with industry good practice. Data was validated by CSA Global during loading into the database. Checks included Depth from Depth to, sample interval hole depth and overlapping sample intervals. Any data which failed the checking process is returned to Azumah for validation. Global consistency was also checked at a later stage by plotting holes on sections using the database and reconciling assays against the geology.

Section 2: Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary

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Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

Work programmes in this report are located in the following leases:

• Julie Far West – PL10/5

• Collette SE – PL10/4

• Basabli NW – PL10/13

• Josephine NW – PL10/9

• Yagha N-S – PL10/12

• Bepkong NW – ML10/11

• Collette – PL10/4

• Duri – PL10/14, PL10/13, PL10/41

• Josephine E PL10/9

• Julie Far East PL10/4

• Kunche ML10/11

All license areas are located in the Upper West Region in the north-west corner of Ghana.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The tenements are in good standing with no known impediments.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

Previous mapping and exploration works were completed by BHP-Utah (1990's), AGEM (late 1990’s) and Semafo (late 1990’s). All exploration activities have been completed by Azumah since 2006.

Geology Deposit type, geological setting and style of mineralisation.

The Project covers approximately 70% of the Palaeoproterozoic Upper and Lower Birimian units, typically known as the Wa-Lawra greenstone belt, within Ghana. Gold mineralisation occurs as follows:

Kunche: Brittle quartz lode/breccia-hosted with higher grade Au mineralisation associated with zones of intense silicification, smokey quartz veins, arsenopyrite and pyrrhotite.

Bepkong and Aduane: Increased ductile shearing and dismemberment of quartz veins. Greater than 1 g/t Au mineralisation occurs within translucent quartz veins and arsenopyrite.

Julie: Quartz veining and lodes within sheared granodiorite host. Au mineralisation is associated with silicification, pyrite, chalcopyrite, carbonate, sericite and haematite alteration.

Collette: Quartz veining with at least 3 orientations. Au mineralisation is associated with silicification, arsenopyrite, pyrite, haematite alteration and glassy translucent quartz veining.

Drill Hole Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

• easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation

above sea level in metres) of the drill hole collar

Details of individual auger holes, rocks and trenches are not tabulated here, as the information required for understanding and interpreting the geochemical results of this type is contained in the maps presented in the report, which show hole and trench locations, and assay results in representative value ranges.

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• dip and azimuth of the hole • down hole length and interception depth • hole length.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

No average weighting or cut offs have been applied to the data in this report.

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

No applicable

The assumptions used for any reporting of metal equivalent values should be clearly stated.

No applicable

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

No applicable

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

No applicable

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).

No applicable

Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Refer to diagrams in body of text.

Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

The ranges displayed on the maps in this report are considered acceptable for exploration purposes. All relevant exploration data has been included in the maps.

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Geochemistry: Surface sampling, mapping and geochemistry were completed by BHP and Azumah.

The geochemical database contains data for 51,680 soil samples and 228,673m of combined auguring and AC drilling.

Airborne Geophysics: A high resolution aeromagnetic and radiometric survey was completed over the central region of the Wa-Lawra Belt (over the Vapor PL) with line spacing

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of 100m and sensor height of 40m. The Wa-Lawra Belt geophysical data has been interpreted at 1:100,000 scale by Southern Geoscience Ltd. The processed imagery has provided a base for a new regional geological interpretation.

Ground Geophysics: Magnetics: A ground magnetic survey conducted in 2006 was plagued by data acquisition problems and the data were rejected as being of insufficient quality for interpretation.

Induced Polarisation: SAGAX Afriques completed a gradient induced polarisation survey (IP) over the Kunche and Bepkong deposits. The anomalies were interpreted to be caused by disseminated sulphides and quartz veining. The IP survey outlined several linear zones with a similar geophysical response, particularly a prominent linear anomaly west of Kunche. Three dominant orientations were interpreted as a dextral reverse shear model.

Several other geophysical targets were identified and require drill testing.

Metallurgical Test Work: Extensive metallurgical test work has been undertaken on the Kunche, Bepkong and Julie deposits. There has been only minor work completed on Collette and no work on Aduane.

Metallurgical test work performed on the Kunche, Bepkong and Julie ores has included:

• Comprehensive head analysis. • Comminution. • Gravity concentration. • Direct cyanide leaching. • Carbon kinetics. • Thickening. • Rheology. • Oxygen uptake. • Cyanide detoxification. • Variability testing.

In addition for Julie ore test work has included:

• Bulk sulphide flotation. • Ultra-fine grinding (UFG) of concentrate. • Cyanide leaching of UFG flotation concentrate

and of flotation tailings. • QEM*SCAN® analysis of Julie concentrate

products.

Collette testing only includes:

• Gravity concentration. • Direct cyanide leaching.

Potential Deleterious Substances: Both Kunche and Bepkong mineralisation contains small quantities of organic carbon, arsenic in the form of arsenopyrite, and other sulphide mineralisation.

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deleterious effect on gold extraction. The limited number of Kunche primary variability composites that do exhibit a reduction in extraction have been included in the correlation equation for gold recovery.

Preliminary testing indicates the flotation/regrind circuit designed for the Julie primary ore may also benefit some of the Kunche primary ore and further test work is planned on some Kunche primary ore samples.

Julie mineralisation contains sulphides which is predominantly pyrite and relatively unreactive. Approximately 35% of the gold is associated with pyrite which can be recovered by flotation and fine grinding of concentrate prior to extraction by cyanide.

Further work The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

Further auger drilling is proposed at the following sites:

• Duri relay

• Piiri

• Julie Far East

• Madam’s Farm

• Basabli NW

Follow up aircore or RC drilling is proposed for the following locations:

• Yagha N-S

• Kunche Footwall

• Kunche North

• Josephine East

Specific programme details are yet to be decided.

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Refer to diagrams in body of text.

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for personal use only - asx · prospect, 4km northeast of the duri granite. piiri lays slightly...

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