Azumah Resources (ASX:AZM,TSX:AZR) study for Wa, Ghana
Feasibility study reveals Wa potential - Azumah
By: Esmarie Swanepoel -- Mining Weekly
27th August 2012
PERTH (miningweekly.com) - ASX-listed Azumah Resources on Monday reported that the feasibility study into its Wa gold project, in Ghana, had confirmed that the project was technically and commercially viable.
The project has a current mineral reserve of 430 000 oz, supporting an initial one-million-ton-a-year gravity/carbon-in-leach operation, with a life-of-mine expectancy of six years.
The project would require a capital input of some A$144-million, and was estimated to have a net present value of A$82-million and an internal rate of return of 31%, with a net cash flow of A$148-million.
“The Wa gold project feasibility study confirms the project’s technical and financial viability and enables Azumah to commence applications for key mining, environmental and other approvals required to initiate development,” said MD Stephen Stone on Monday.
“The study also allows us to advance discussions with our shortlist of possible providers for various forms of project finance,” he added.
Subject to the timing of the key permits and the finance of the project, construction at the Wa project was expected to take some 17 months, and could see production start by late 2014.
“We envisage making a development decision in early 2013, by which time the expected delivery of additional mineral reserves will have placed the project on an even stronger footing,” said Stone.
A mineral reserve upgrade, which was scheduled for early 2013, was planned to extend the mine life with a commensurate positive impact on financial returns. Azumah noted that the update would benefit from infill drilling designed to convert mineral resources to mineral reserves in the immediate vicinity of designed pits, and from recent drilling results from the Julie deposit and the Aduane prospect.
“With some A$20-million in cash and listed investments, Azumah remains well positioned to continue delivering excellent exploration results in parallel to advancing its plans to establish the first commercial-scale gold mining operation in Ghana’s emerging and very prospective gold province,” said Stone.
