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Azumah on a march in Ghana

West African focused Azumah Resources is picking up the pace at its Wa Gold Project in Ghana with drilling providing further support for a possible feeder zone into the main Kunche deposit.

Follow-up drilling has provided further “proof of concept” for the zone, which should enable the existing shallow pit design to be deepened and an underground mining option to be scoped.

In May, the company told the ASX that it had made a game changing intercept of 44 metres grading 5.37 grams per tonne gold from 99m down-hole including a higher grade zone of 27m @ 7.86 g/t from 116m with a breathtaking peak intercept of 1m @ 144g/t gold.

The latest results of 4m at 3.2g/t gold from 178m and 7m @ 1.90g/t Au from 186m are located about 25m from that top result and below another hole that returned 27m @ 2.43g/t gold from 137m.

Azumah is modelling the Kunche deposit and updating the Mineral Resource estimate which will be incorporated into a Mineral Resource update for the overall project, due for release in the third quarter of 2018.

The Wa project already has a Mineral Resource of 2.1 million ounces of gold and importantly, a 624,000-ounce ore reserve at an average grade of 2.14 g/t gold.

Azumah is now planning to drill additional holes to test for depth and strike extensions of the interpreted feeder zone.

Private equity group Ibaera is carrying exploration costs as part of a $17.5 million farm-in agreement under which it can earn up to 47.5 per cent of the project

Ibaera Global Targeting & Research Manager Dr Jon Hronsky said: “We are extremely happy with the progress made on many fronts at the Wa Gold Project this past few months and in particular the ‘proof of concept’ drilling that may suggest a possible feeder zone into the Kunche deposit.”

“Several drill rigs continue to test and evaluate a number of existing and new prospects across the whole project with the immediate goal being to update Mineral Resources in Q3 2018 and Ore Reserves before year-end”

In addition to the new round of excitement at Kunche, the company has also intersected mineralisation about 80m beneath the base of the previously designed, shallow open pit at the southern end of the Kunche deposit.

This has also raised the possibility of deepening the pit in this area.

Notable intercepts were 2m @ 2.07g/t gold from 140m, 5m @ 2.33g/t gold from 144m and 7m at 1.55g/t gold from 123m.

Drilling at the emerging Kunche Northwest prospect has confirmed mineralisation over a 200m strike with top intercepts of 8m @ 1.52g/t gold from 64m, 5m @ 1.63g/t gold from 109m and 8m @ 1.44g/t gold from 71m.

Meanwhile, a 33 hole aircore drilling program at Kunche East has confirmed zones of shallow oxide mineralisation close to the eastern perimeter of the proposed Kunche open pit.

This returned a 6m intercept @ 2.8g/t gold from 2m and 2m @ 2.21g/t gold from 3m.

Azumah said there is potential for these zones to have a positive impact on pit design and Mineral Resources.

At the satellite Aduane deposit, located between the Kunche and Bepkong deposits, holes drilled to find depth extensions to the current Mineral Resource returned narrow ore-grade intercepts.

Azumah shareholders are looking forward to a steady stream of newsflow out of the company now as it starts to hit its straps in Africa on the way towards achieving the magical million ounce reserve mark.

Azumah will give the market a window of insight into the project when it releases its highly anticipated Mineral Resource update in the third quarter of 2018.

This includes an update on the progress of engineering studies aimed at revising and optimising several key inputs into the Project Feasibility Study that will lead to an interim Ore Reserve update towards the end of the year.

 It will also include the results of further work at the emerging Butele discovery that will most likely extend the mineralisation footprint.

The company will also release the results of drilling at the Manwe and Josephine South prospects soon and it will test multiple satellite prospects with diamond drilling at the Julie deposit in particular, designed to pursue deeper extensions to underpin a possible underground mining development option.

With a likely upgrade to the existing mineral resource of 2.1Moz of gold coming and future updates that will underscore the scope of the Wa project, Azumah may well pop up on a few radars in the coming months.

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Share Price

Closing price for the last 90 trading days
Source: Morningstar

Total Shareholder Return as at 30/11/18

1 year TSR5 year TSR
347thAzumah Resources-9%-6%
368thPelican Resources-10%19%
372ndKalium Lakes-11%
645thProspect Resources-50%40%
741 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Share Transactions

06/12/18
$0 Issued
06/12/18
$0 Issued
05/11/18
$9k Bought
Total value as at the date of the transaction
Source: Morningstar

Revenue

70th↑Azumah Resources$4.4m
71st↑Kalium Lakes$4.1m
72nd↑Zeta Petroleum$4.1m
74th↑Pelican Resources$3.9m
75th↑Prospect Resources$3.8m
509 listed resources companies ranked by revenue.
Source: Morningstar

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