Azumah Resources Managing Director Stephen Stone

Azumah bullish on African project after gold surge

Rising gold prices have added another layer to Azumah Resources’ already attractive Wa gold project in Ghana that is winding its way towards a feasibility study before the end of this year.

At an assumed gold price of USD$1,500 per ounce, Wa could deliver pre-tax, post-Government royalty cash flow of USD$448 million, pre-tax net present value, or “NPV”, of USD$309 million and an internal rate of return, or “IRR”, of about 54%.

This compares to the scoping study cash flow of USD$270 million, NPV of USD$177 million and IRR of 35% at an assumed gold price of USD$1,300 per ounce.

While this is a considerable improvement in and by itself, it also excludes any further upside from the development of the Bepkong underground deposit and any incremental ore reserves located within a reasonable trucking distance of the proposed 1.8 million tonne per annum regional processing facility at Kunche.

Azumah previously said that Bepkong could spit out 154,000 ounces of gold, producing a post-royalty, pre-tax cash flow of USD$32m over 4.5 years using an assumed gold price of USD$1,300 per ounce.

Managing Director Stephen Stone said: “It’s a particularly exciting time right now for Azumah and the Wa gold project as we are on the home straight to deliver an economically robust, long-life gold mine development for Ghana’s Upper West region, fully supported by the local community and Ghanaian Government at all levels.”

The company plans to remobilise its geological team back on-site shortly to recommence target generation and evaluation work across the 2,400 square kilometre Wa project, following the imminent cessation of the wet season.

Partner Ibaera Capital is sole funding the remaining USD$2.25 million budget to complete the Wa feasibility study to increase its direct interest in the project by 4% to 46.5%.

Wa has a global mineral resource of 2.77 million ounces of gold and an ore reserve of 1.03 million ounces.


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