Wa-east / Julie Resource
Julie, Collette, Josephine and Kjersti
The Julie, Collette, Josephine and Kjersti prospecting licences with a total area of 300km2 are located to the east of the Kunche and Bepkong resources, and comprise part of the Wa Gold Project.
- Several favourable sites already identified for the development of gold mineralisation.
- Resource upgrade drilling at Julie is complete as at 25 August 2011, and a maiden reserve statement is due in Q1 2012.
Julie Resource
The Julie deposit is part of the Wa Gold Project in north west Ghana, and is located 75km to the east of the Kunche and Bepkong resources.
The mineralised zone is shallow dipping, which is ideally suited to open pit mining. Several strongly mineralised intercepts have been obtained outside of the current preliminary pit shell which suggests that the current resource will be increased, the pit outline expanded and more gold made available for mining.
A geological interpretation of the Julie deposit is being updated ahead of a maiden reserve statement due in Q1 2012.
- Maiden NI 43-101 and JORC Code reported Indicated Mineral Resource estimate for Julie deposit of 3.4Mt at 2.2g/t Au for 246,000oz and Inferred Mineral Resource of 1.5Mt at 2.2g/t Au for 104,000 oz.
- Shallow dip and prelim optimised pit grades of av 2.77g/t Au ideal for open cut mining.
- Open along strike and at depth, with excellent along strike and down-dip continuity.
- The Julie resource also contains in two, near-surface high-grade zones 1.8 million tonnes grading 3.57g/t gold for 211,000 ounces (2.0g/t gold cut-off).
- Confirmed likelihood of eastern extensions to existing Julie resource. RC intercepts included:
• 3m at 30.19g/t gold from 4m,
• 3m at 13.87g/t from 4m, and
• 2m at 81.35g/t from 32m
Latest drilling results: December 2011 Quarterly Activities Report.
Details of the Julie Mineral resource estimation: ASX release dated 24th March 2010.
Julie Deposit: NI 43-101 and JORC Code Reported Mineral Resource Estimate
The Julie Mineral Resource estimate was undertaken by Perth based independent geological consultants, CSA Global:
Julie Deposit: NI 43-101 and JORC Code Reported Mineral Resource Estimate
| Category | Tonnes | Au g/t | Contained Ounces |
|---|---|---|---|
| Inferred | 1,489,000 | 2.2 | 104,000 |
| Indicated | 3,438,000 | 2.2 | 246,000 |
Notes: Mineral Resource estimate reports blocks above 1g/t gold grade.
Details of the resource estimation are supplied in Appendix.
Rounding errors may apply.
The Julie structure and mineralisation comprises a series of low-angle, north-dipping, east-west trending veins extending for over 6 kilometres (Figures 3 and 4 in our March 2010 ASX Announcement). These are intersected in places by north-south trending laminated quartz veins. Surface rock chip samples of the latter frequently exceed one ounce gold per tonne with a recent sample returning over six ounces gold per tonne.
Azumah has been focusing its drilling on two zones – Julie Eastern and Julie Western – providing an early opportunity to delineate near-surface, shallow-dipping, higher-grade resources.
The gold mineralisation commences at surface and has been modeled to a depth of 80 vertical metres below surface. It remains open in all directions.
Drilling to extend the Julie Mineral Resource has recently been completed and results of this, and of drilling to extend mineralisation at the nearby 4km east-west trending Collette prospect, are awaited.
Azumah has recently committed to a second 40,000m combined RC, aircore and diamond drilling programme which will focus on increasing resources at existing prospects and the delineation of resources at the Company's growing pipeline of high priority new targets.
Appendix 1: Notes to Julie Deposit Mineral Resource Summary Report
The Mineral Resource is quoted for blocks with a grade of greater than 1.0 g/t. Differences may occur due to rounding errors.
- The Julie deposit is part of the Wa Gold Project in north west Ghana. The deposit is located 75km to the east of the Kunche and Bepkong resources
- A total of 341 RC drill and 34 surface trenches were completed targeting the Julie project area. Of these, 264 RC holes and 9 trenches penetrated the Julie mineralisation, as defined by the resource model
- All Azumah RC drill hole collars were surveyed by DGPS, and where possible, historic drill holes were re-surveyed.
- Down hole surveys were measured at approximately 30 metre intervals, by single shot camera.
- Wire-framed domains capturing gold mineralisation within an envelope encapsulating samples of greater than 0.3g/t gold were modelled. A total of 14 separate wireframes were modelled and formed the basis for the resource estimate
- Wire-framed surfaces representing the "top of fresh rock" (TOFR) and "bottom of complete oxidation" (BOCO) were modelled
- A block model was constructed for the deposit using wire-framed mineralisation and weathering domains. A block size of 50m
- (X) x 20m (Y) x 6m (Z) was constructed, with sub-cells used to honour the wireframe surface fluctuations
- All drill samples were composited to one metre lengths
- Grade was estimated into the interpreted mineralised lodes using ordinary kriging (OK) and for surface mineralisation (trench) not associated with a primary lode. Inverse Distance squared was used to estimate grade. A hard boundary was utilised to ensure that samples in adjacent mineralised lodes could not be used to estimate between lodes.
- A top cut of 40g/t was applied to the composited data located in the east-west modelled structures and a top cut of 20g/t was applied to the north-south vein set. In addition a top cut of 40g/t was applied to surface mineralisation unconnected to primary mineralised zones.
- Log variograms were modelled from sample data constrained within the mineralised wireframes. The sample populations were not split at the TOFR weathering surface
- Bulk densities were assigned according to the weathering profile of the block model. No laboratory testing of bulk density data was available, but was set according to standardised values according to the rock and weathering type, as agreed between CSA and Azumah. All blocks located in the oxidised weathering profile were assigned a bulk density of 2.0 t/m3, blocks located in the transitional profile were assigned 2.4 t/m3, and blocks located in the fresh rock domain assigned a bulk density of 2.7 t/m3. The gold mineralisation is hosted within quartz lodes and the assigned bulk density values reflect the host rock.
Table A presents the extents of the modelled resource.
Table A. Extents of mineralisation zone
| Easting | Northing | Elevation | |||
|---|---|---|---|---|---|
| Min | Max | Min | Max | Min | Max |
| 592898 | 597945 | 1115655 | 1116447 | 145.74 | 346 |
Table B presents the variables used in the Julie Mineral Resource model.
Table B. Block Model parameters and variables
Block Model Parameters |
|
|---|---|
| Attributes: | |
| CLASS | JORC classification; Indicated = 2, Inferred = 3 |
| AU | Estimated AU grade. Ordinary Kriging |
| AU_IDS | Inverse Distance Squared AU grade |
| WEATH | Weathering domain. Completely Oxidised = 10, Transitional = 20, Fresh = 30 |
| TOPO | Mined = 10, In-situ = 20 |
| DENSITY | Assigned Bulk Density |
The reported Mineral Resource has been classified as a combination of Indicated and Inferred. The Indicated portion of the resource is 69%. Resource blocks were deemed to be Inferred where the continuity of mineralisation and geology was assumed but not verified. The classification is supported by a sound level of QAQC checks on assay data, and verified drill hole collar positions and down hole surveys.
Collette
The Collette target, located 50km east of Wa, is defined by a strong geochemical anomaly and at least two shear zones totaling more than 5km strike with numerous cross-cutting faults. Mineralisation at Collette occurs within a complex of moderately dipping sheeted quartz veins within a persistent 4km east-west structural corridor hosted by Birimian sediments.
- JORC, NI 43-101 Reported Inferred Mineral Resource estimate for Collette deposit of 909,000t at 2.07g/t Au for 60,600 oz (1.0g/t gold cut off)
- A maximum depth of 120m with 85% of the resource occurring above 70m depth.
- Open at depth and in all other directions.
- Wide zones of ore-grade mineralisation have been confirmed at depth, with significant results including:
• 6m at 8.69g/t Au from 114m, and
• 4m at 6.20g/t Au from 75m
Details of the Collette Mineral resource estimation appear in our 10th September 2010 ASX release.
Josephine
Recent and extensive artisanal mining in two areas at the Josephine prospect, 65km east of Azumah's flagship Kunche-
Bepkong deposits, has highlighted a mineralised trend extending for at least 2km and elevated the status of the Josephine
prospect to high priority. The artisanal workings indicate that the mineralisation is broad and not confined to narrow structures.
- Extensive new artisanal workings highlight opportunity for a resource at Josephine prospect.
- Work by previous holders of the licence comprised mapping, soil sampling, trenching, geophysics and limited RAB and RC drilling. The latter returned several strong intercepts including 37m at 3.11g/t Au from 4m, 14m at 2.97g/t Au from surface and 5m at 5.17g/t Au from 33m.
- Historical drilling at Josephine South, a second prospect 2.5km to the south and where a third area of artisanal workings has been established, also returned some encouraging first-pass historical intercepts including 2m at 3.94g/t from surface and 6m at 1.34g/t from 14m.
- Mapping, rock chip sampling and field checking of historical work is continuing at both Josephine and Josephine South. An
auger and RC drilling programme has been planned and some holes already completed.
More information can be found in our June 2011 Quarterly Report.
Kjersti
The Julie licence also hosts the11km east-west trending Kjersti structure, which has similar geological characteristics to the Julie and Collette targets. Kjersti is defined by strong surface geochemical anomalism with values over 1g/t gold, artisanal workings and limited drilling.
- The structure remains open along strike and at depth.
- Azumah completed an extensive first pass reconnaissance aircore drilling campaign at Kjersti prospect during the June 2010 quarter.
- During the June 2010 quarter Azumah also completed a six-hole, two-fence RC drilling program targeting galamsey workings at the Kjersti prospect area. Four grab samples from two stockpiles of laminated quartz vein material at the Kjersti West galamsey workings returned up to 42g/t gold.
More information can be found in our June 2010 Quarterly Report and 30th August 2010 ASX release.