KUNCHE TIME: Aspiring gold producer Azumah’s strike is 75m deeper than it thought
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Drilling at the 591,000oz Kunche deposit shows high grade gold extending up to 75m deeper than Azumah Resources thought – and the Ghana-based gold explorer still hasn’t found where it finishes.
These “transformational” drilling results at Azumah’s (ASX:AZM) Kunche-Bepkong mining camp could see it fully underpin the advanced 2.5 million ounce Wa Gold Project open-pit mining operation.
One hole returned 5 metres at 6 grams per tonne gold, 214 metres from surface; which was about 75 metres below a May 2018 intercept of 44 metres at 5.37 grams per tonne.
Another drill hole returned a spectacular intercept of 1 metre at 140.49 grams per tonne from 208m – that’s more than four ounces of gold per tonne.
Azumah share price, which has ranged between 1.6c and 4.6c over the past 12 months, was up 3.8 per cent to 2.7c in morning trade.
The company has almost finished a project feasibility study which is based on the mining of a series of relatively shallow open pits.
But the possibility of underground mining at one or more of these pits is also emerging, the company told investors.
Azumah boss Stephen Stone said it was a tremendous start to its 40,000 metre, multi-objective drilling campaign.
“[An] update on the progress of the feasibility study and ore reserves is just weeks away and we are very confident this will be a defining year for the Wa Gold Project and Azumah’s shareholders.”
The explorer, which has plugged away on the project for over a decade, wants to make a development decision in the third quarter this year.