Azimuth Resources Limited - Corporate and Exploration Update
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PERTH, AUSTRALIA, July 3, 2012 /CNW/ - Azimuth Resources Limited (ASX and TSX: AZH) (the "Company" or "Azimuth") is pleased to provide an update on corporate and exploration activity.
- Strategy in place to substantially grow resource inventory beyond maiden 1.22Moz at 3.1g/t Au.
- Significant results received from Smarts deposit (outside of the resource envelope) include
- 18m @ 6.8 g/t Au (depth extension)
- 5m @ 5.9 g/t Au (depth extension)
- 5m @ 7.6 g/t Au (NW strike extension)
- 1m @ 31.9 g/t Au (NW strike extension)
- 6m @ 5.0 g/t Au (NW strike extension)
- 1m @ 24.9 g/t Au (NW strike extension)
- Management changes see continued development of management team.
Exploration Strategy and Significant Results
Azimuth announced its maiden inferred mineral resource of 12.4Mt at 3.1g/t Au for 1.22Moz contained ounces of gold at the end of May. The Company has since developed an exploration strategy designed to grow its resource inventory over the next 6 to 12 months. The Company has reduced its fleet of drill rigs to 3 (1 core, 1 RC and 1 air core) now that the resource drill out is complete and in order to reduce its expenditure in recognition of the current tight equity markets. The Company currently has sufficient cash at hand to fund this strategy over the next 6 months.
The Company intends to utilize the rig fleet as detailed below:
- Core rig to drill extensions along strike and at depth of the Smarts deposit.
- RC rig to test targets defined by artisanal miners and geophysical targets along the strike extensions (Goldstar, Kaburi, El Paso, Powers, Killicow, Eldorado).
- Air core rig to generate targets under sand cover using interpretation of its recently acquired air magnetic survey as the primary targeting tool together with standard ground truthing techniques.
The Company's strategy is to spend the next 6 to 12 months on resource growth and target generation to fuel that growth with the goal of substantially increasing its resource inventory. In parallel the Company will continue work on long lead feasibility work such as metallurgical studies to advance process flow sheet development and base line environmental studies.
The Company believes that this small reduction in drilling capacity will facilitate an environment of increased focus and efficient development of targets as well as expansion of the resource inventory, in doing so managing the company's cash stocks effectively.
The Company has recently received the following drilling results:
Smarts extensions below the current resource envelope. Note, all depths quoted below are down hole depths:
|SDD009:||18m @ 6.8 g/t Au (from 186m)|
|SDT505:||5m @ 5.9 g/t Au (from 284m);|
|8m @ 1.3 g/t Au (from 300m)|
|SDT478:||1m @ 11 g/t Au (from 254m)|
Smarts intercepts in the north-western portion of Smarts (along strike and sub parallel lodes) that are currently outside of the resource envelopes
|SDT271:||5m @ 7.6 g/t Au (from 183m)|
|SDT218:||1m @ 31.9 g/t Au (from 134m)|
|SDT443:||3m @ 4.7 g/t Au (from 133m)|
|SDT579:||1m @ 24.9 g/t Au (from 62m)|
|SDT591:||4m @ 4.2 g/t Au (from 127m)|
|SDT593:||6m @ 5.0 g/t Au (from 234m)|
Drilling is continuing at Smarts in two main areas - the depth extensions to the high grade orebody and the second is the extensions along strike to the northwest. There appear to be 3 zones of mineralization in the Northwest area of the deposit and all three have the potential to add significant ounces to the resource inventory.
First pass RC drilling has been completed at Eldorado (7 holes for 676 metres) and Goldstar (11 holes for 1676 metres). RC drilling has commenced at Powers prospect and south east of the Kaburi prospect along strike from previous drill intercepts of up to 9m @ 9.2 g/t Au.
Eldorado is located 3km east of the Smarts deposit and historically has been an area of intense alluvial mining activity. The recent 7 hole program tested targets in and around the alluvial pit area where several old shafts also exist. Assay results have been returned for 5 of the Eldorado drillholes; the best intercept to date being ERC004 (1m @ 8.8 g/t Au - from 29m) which drills below one of the historical shafts. Several low grade intervals were also noted in ERC005 and ERC007 but do not exceed 0.5 g/t Au. The prospect will be re-evaluated once the remaining assay batches have been received.
The Goldstar prospect is located within the Aurora-Gem Creek Corridor, approximately 6km northeast of the Smarts deposit. This large corridor has extensive alluvial pits and workings within the Company's tenure. The Company has been conducting auger geochemical sampling along the trend and has defined several zones of interest that are being followed up. The first of these areas to be drilled has been Goldstar, with 11 RC holes completed earlier this month. Assay results have only been received for the first 2 drill holes to date which returned anomalous gold values, and confirms that the structures that pass through the Goldstar pit area are indeed fertile.
The RC drilling programs southeast of Kaburi and at Powers are in progress and no assay results are available at this stage. Drilling at both prospects has intersected shear hosted quartz veins and sulphides over a strike length of 200m at Kaburi and 500m at Powers. Assays are awaited.
A program of scout aircore drilling is in progress approximately 10km west northwest of the Smarts deposit. Three lines of holes at 100-200m spacing are being completed testing regional trends identified in the aeromagnetics. The area is completely covered with 20 to 40 metres of sand making aircore the most suitable cost effective technique to test the basement and the cover interface. Assay results have been received for approximately half of the first line and several holes have intersected low level gold anomalism in the interface between cover and basement. Such low level anomalism is present in the interface between cover and basement at the Smarts prospect where values of 50-200ppb are common up to 400 metres laterally away from the Smarts mineralisation. The Company believes such low level anomalism can provide a vector to basement mineralisation and will plan follow up RC drilling once further results are received.
Other target areas are currently being assessed with basic mapping, prospecting and geochemical tools in conjunction with the recently acquired airborne geophysics. Alluvial mining pits and shafts at El Passo, Killicow and others are being investigated and drill programs prepared.
The Company continues to build its exploration and development team in country. The Company's COO Paul Criddle is now based in country and the team has been augmented over the last months with the appointment of an in country Exploration Manager and in country Commercial Manager.
Dominic O'Sullivan, the Company's founder and president has decided to resign as an executive of the Company and will step down to a non-executive director role. He will provide his services on a consulting basis to assist the company with geological services and strategic land acquisition. Dominic feels that having achieved the major milestones of a maiden resource, establishing excellent tenure in Guyana and developing the Company's exploration strategy and handing over the reins to the new management team he has achieved his goals as founder of the Company. The Board and management of Azimuth wish to thank Dominic for his executive efforts to date and look forward to a continuing relationship with him to benefit the Company's shareholders with his extensive in country knowledge and experience.
Competent Person's Statement
The information in this report that relates to exploration results is based on information compiled by Mr. Richard Monti who is a member of the Australasian Institute of Mining and Metallurgy. Mr. Monti is a Director of Azimuth Resources Ltd. Mr. Monti has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and a qualified person as defined in National Instrument 43-101. Mr. Monti consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to mineral resources or ore reserves is based on information compiled by Mr. Aaron Green who is a member of the Australian Institute of Geoscientists (MAIG). Mr. Green is a full time employee of Runge (Australia) Limited. Mr. Green has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and a qualified person as defined in National Instrument 43-101. Mr. Green consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. For a description of the data verification process, quality assurance and quality control measures, the effective date of the mineral resource estimates contained herein, details of the key assumptions, parameters and methods used to estimate the mineral resources set out in this report and the extent to which the estimate of mineral resources set out herein may be material affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues, readers are directed to the technical report entitled "Technical Report, West Omai Gold Project, Guyana" dated May 30, 2012.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information, including statements regarding mineral resource estimates, the potential mineralisation and geological merits of the Hicks and Smarts Deposits and the plans, objectives or expectations of the Company with respect to the advancement of these projects and completion of programs and studies. Any statements that express or involve predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are forward-looking statements.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to materially differ from those reflected in the forward-looking statements, including, without limitation: inherent uncertainties and risks associated with mineral exploration; uncertainties related to the availability of future financing; uncertainties related to the outcome of studies; uncertainties relating to fluctuations in gold or uranium prices; the risk that Azimuth's title to its properties could be challenged; uncertainties related to general economic and financial conditions; and uncertainties related to fluctuations in Azimuth's share price. This list is not exhaustive of the factors that may affect any of Azimuth's forward-looking statements. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of Azimuth or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company's Annual Information Form under the heading "Description of the Business - Risk Factors" and elsewhere.
Azimuth's forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management as of the date hereof and which Azimuth believes are reasonable in the circumstances, but no assurance can be given that these expectations will prove to be correct. These assumptions include, but are not limited to public statements and stated goals, that there will be no material adverse change affecting the Company or its properties and such other assumptions as set out herein. Azimuth disclaims any intention or obligation to update or revise forward-looking statements if circumstances or management's beliefs, expectations or opinions should change, except as required by law. For the reasons set forth above, undue reliance should not be placed on forward-looking statements.
SOURCE Azimuth Resources
Image with caption: "Map showing West Omai regional target drilling and Smarts and Hicks resource drill hole locations. (CNW Group/Azimuth Resources)". Image available at: http://photos.newswire.ca/images/download/20120702_C5695_PHOTO_EN_15876.jpg