07/02/2006 - 21:00

Adamus expands Ashanti gold base

07/02/2006 - 21:00

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Perth junior Adamus Resources Ltd could be producing more than 100,000 ounces a year from its enlarged Southern Ashanti gold project in Ghana by late next year.

Perth junior Adamus Resources Ltd could be producing more than 100,000 ounces a year from its enlarged Southern Ashanti gold project in Ghana by late next year.

Scoping studies on the upgraded 1.5 million ounce resource are expected to be completed by the end of next month.

This will be followed by a full feasibility study and plant design, scheduled for completion by Christmas this year, with production a little less than a year later.

“We will definitely have a go at it, there’s no doubt about that, it’s just a matter of the ultimate size and production rate,” Adamus director Mark Bojanjac told WA Business News.

However, he expects production will be over 100,000 ounces a year, particularly in the first couple of years because of the near-surface characteristics of the ore.

The resource upgrade to 22 million tonnes at 2.1 grams per tonne (g/t), follows three months of drilling targeting extensions to the Anwia and Salman deposits that sit within the 420 square kilometres held by Adamus at the southern end of Ghana’s world class Ashanti gold belt.

Ninety per cent of the Salman resources are at less than 100 metres in depth and 80 per cent of Anwia, at less than 150 metres in depth, indicating simple, low cost, open cut mining.

The bigger production picture for Adamus has been greatly enhanced by a deal to acquire the highly prospective adjacent Anwia South gold project through the acquisition of Nkroful Mining Ltd.

At more than 80sq km, the Anwia South project borders both the southern and western boundaries of Adamus’ Anwia project.

Recent drilling results included very high-grade intersections of 148 g/t over 6 metres from 43 metres depth, 71.7g/t over five metres and 10.1g/t over 14 metres, with the gold mineralisation extending over 350 metres in length and remaining open both along strike and down dip.

“Anwia South is looking much better than we first thought. If the grades hold up in the upcoming confirmation drilling, they could be higher than Anwia and Salman,” Mr Bojanjac said.

“That could mean a plant right in the middle of them, but we’ll have to wait and see.”

It’s expected the Nkroful Mining acquisition will be completed by the end of next month and includes a cash payment of $US750,000 ($A1 million) and the issue of 3,665,000 fully paid Adamus shares.

Mr Bojanjac said the company would continue to target extensions to the Salman and Anwia deposits, and further evaluate the potential of the pending Anwia South acquisition.

Shares in Adamus have risen steadily from 35 cents since early September last year to an 88 cents high in February before easing to around 80 cents.

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