Board and management team of successful explorers, mining and corporate professionals
Issued Capital:
397.347M ordinary shares 7.525M 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]
Activities Report
Quarter Ending 30th September 2015
Wa Gold Project, Ghana
Wa Gold Project
► Feasibility Study review indicates material capital and operating cost savings achievable which will enhance returns and financing of Project
► Regional specific development agreement being sought with the Ghana Government to secure fiscal concessions that will also assist financing and accelerate payback
► Environmental permitting process advancing
► Project funding and development discussions progressing with several international groups conducting due diligence
Exploration
► Auger sampling programmes continue to identify new and enhance existing anomalies
► RC drilling programmes planned to test high-priority targets
Corporate
► $1.6M working capital cash (excl. listed investments)
Perth-based gold explorer and developer Azumah Resources Limited (ASX:AZM) ('Azumah' or 'the Company') provides the following summary of progress made during the Quarter ended 30th September 2015 at its Wa Gold Project, northwest Ghana, West Africa (the 'Project').
WA GOLD PROJECT DEVELOPMENT
The Company continued to advance Project pre-development activities using the platform of the Feasibility Study ('Study') (refer ASX release dated 23rd March 2015) which confirmed a technically robust Project producing ~90,000oz per year over an initial seven years.
Capital and operating cost reduction initiatives
To enhance returns and to facilitate funding, Project capital and operating costs continue to be reviewed. A number of material savings have been identified reflecting increased competitiveness amongst equipment suppliers and service providers since the Study inputs were locked-in during August 2014.
A formal re-estimate of capital costs on the basis of the Study configuration is not planned at this stage as several Project reconfiguration and construction options are still being evaluated.
Azumah Resources Limited - September Quarter 2015 Activities Report
Environmental permitting and community approval process progressing
During the reporting period, revised scoping reports for planned mining operations at both Kunche-Bepkong and Julie were submitted to the Ghana EPA and have now been advertised to obtain stakeholder feedback.
The revised scoping reports were necessary due to the expanded size of the operation at Julie where substantially larger mineral resources have been defined and for Kunche where the plant has been expanded and augmented with a flotation and regrind circuit to enhance Julie gold recoveries. A membrane lining of the tailings dam has also been added to comply with EPA requirements.
Following feedback from the public consultation process, the terms of reference for the draft EIS will be provided to the Company by the EPA.
Azumah's wide community and stakeholder engagement programmes are continuing in parallel with the formal EPA permitting process.
Regional Development Agreement
Azumah is presently drafting and will shortly be submitting to the Ghana Government a proposal for regional specific project development concessions to remove or defer several fiscal payments that, if secured, will reduce establishment capital costs and accelerate Project payback.
Project Financing
Azumah is continuing discussions with a range of international project finance, institutional and corporate groups to identify and develop funding options for the Project.
Several Confidentiality Agreements have been executed and access to Project data provided to enable the parties to conduct due diligence.
EXPLORATION
Azumah's mapping and auger sampling programmes highlight the strong prospectivity throughout its 2,800km2 Wa Gold Project and the opportunity to discover additional Mineral Resources to further underpin the development of the Project.
Exploration continues to identify new gold anomalies and to better define others. This work has been undertaken in the broader Wa Lawra area (which contains the Kunche, Bepkong and Aduane deposits) and in the Wa East area (which hosts the Julie and Collette deposits)(refer ASX release dated 15th July 2015).
An RC drilling programme to test a number of advanced priority targets has been designed. These targets are at Piiri (Wa Lawra, Duri area), Butele / Belandiri (30km south of Kunche), Julie Far East (Wa East) and Manwe (Wa East).
CORPORATE
As at 30th September 2015, Azumah had working capital of A$1.6M and a 15% shareholding in Castle Minerals Limited ($0.2M).
NEXT QUARTER
In the December 2015 Quarter Azumah plans to:
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Progress discussions with parties interested in participating in Project finance and development;
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Evaluate Project operating and capital costs reductions;
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Consider alternative plant configuration options;
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Advance discussions with the Ghana Government on fiscal concessions;
Azumah Resources Limited - September Quarter 2015 Activities Report
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Confirm with the EPA the terms of reference for the draft EIS as part of EPA licencing process;
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Continue low-cost auger sampling to generate new and to firm-up existing targets;
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Commence RC drilling of selected high-priority targets; and
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Maintain prudent control of expenditure.