Azumah up 56% on drilling results

Shares in West Africa-focused Azumah Resources soared today on the back of positive drilling results from its Wa gold project in Ghana.

West Perth-based Azumah said it had intercepted 44 metres at 5.37 grams per tonne from 99 metres at the Kunche deposit.

This included two high-grade zones of six metres at 3.33g/t from 99 metres, and 27 metres at 7.86g/t from 116 metres.

The news sent the company’s share price up 56 per cent to finish at 3.6 cents each at the close.

“This newly defined zone of high-grade mineralisation has been confirmed by two other drill holes and may represent the top of a steeply plunging, high-grade ore-shoot and system feeder of unknown depth extent,” Azumah said in a statement to the ASX.

In September last year, Azumah entered into an earn-in and shareholders agreement with Perth-based private equity fund Ibaera Capital, allowing the group a 47.5 per cent stake in the Wa project for a capital expenditure of about $17 million.

Ibaera is run by former executives from Fortescue Metals Group, including James Wallbank and Paul L’Herpiniere.

Currently the Wa project has an ore reserve of 624,000 ounces of gold, and the joint venture is aiming to increase the reserve to about 1 million ounces.

Managing director Stephen Stone said the results were significant for the company.

“These excellent intercepts are a genuine game-changer for the Wa gold project and increase our confidence that we can materially boost mineral resources and ore reserves,” he said.

The JV is set to spend $6 million on its drilling program in 2018.