Kunche Resource
| Zone | Indicated | Inferred | Total | ||||
|---|---|---|---|---|---|---|---|
| Tonnes Mt |
Cut Au g/t |
Tonnes Mt |
Cut Au g/t |
Tonnes Mt |
Cut Au g/t |
Ounces oz Au |
|
| Oxide | 0.9 | 2.0 | 0.2 | 1.7 | 1.1 | 1.9 | 68,000 |
| Transitional | 1.0 | 2.0 | 0.3 | 1.7 | 1.3 | 1.9 | 83,000 |
| Fresh | 3.1 | 2.0 | 3.0 | 1.7 | 6.1 | 1.9 | 365,000 |
| Total | 4.9 | 2.0 | 3.6 | 1.7 | 8.5 | 1.9 | 516,000 |
September 2006 +1.0g/t Au Au Cut Off
Notes on Resource Estimation
- All resources reported in Table 1 are quoted using a lower cut-off grade of 1 g/t gold.
- A high grade cut of 20 g/t gold was determined from statistical analysis and applied to all assay data used in the estimation of all resources in Table 1.
- All resources reported in Table 1 are from one principal and continuous zone called Kunche Main. Seven subsidiary zones have been recognised and their resources included. These subsidiary zones are within 150m of the Kunche Main area.
- The current resource estimation was undertaken by Resource Evaluations Pty Ltd of Perth, Australia (”ResEval”) from 85 surface RC, RC-DD and DD drill holes from both the Ashanti-AGEM drilling (14 RC holes, 5 diamond core holes) and the Azumah Resources drilling (47 RC holes, 19 diamond core holes) conducted between March and June 2006. 52 trenches across the Kunche Main zone were also used from the Ashanti-AGEM exploration to guide mineralised polygons during wire-frame construction, but were not used in the grade estimation.
- No assumptions have been made about the mining or processing methods in the current resource estimation.
- Drill holes drilled by Azumah between March and June 2006 infill and extend the Ashanti-AGEM data to a 50m x 50m drill spacing along the 1,500m Kunche Main zone to a depth of at least 100m below surface.
- All drill hole collars used in the current resource estimation were visited by Azumah and RSG Global personnel and their locations picked up with a high precision GPS accurate to 0.006m in X, Y and Z planes. All survey pick ups were done using WGS84 datum and projected using UTM Zone 30N.
- All one-metre RC assays were weighed, riffle split to provide a 3kg sample and numbered with a unique identifier.
- All assaying was zone by Transworld Laboratories (”TWL”) in Tarkwa, Ghana using industry-standard, lead collection fire assay of a 50g sample and analysed by flame atomic absorption spectrometry (AAS) with a quoted detection limit of 0.01ppm gold.
- NQ2 and HQ3 diamond drill core was oriented using a conventional spear technique after every 6m run to provide structural and geotechnical information. The core was cut in half using a conventional diamond blade saw and sampled at 1m intervals, numbered with a unique identifier and sent to TWL for gold analysis. The remaining half core has been retained in a secure storage facility for future reference.
- The sample collection, sample processing, data collection, storage and compilation were undertaken by RSG Global Consultants based in Ghana, West Africa.
- The geological model was determined from RC drill chip and oriented core logging and interpretation and surface geological observations by RSG Global and Azumah Resources' Exploration Manager.
- A minimum of 5% certified reference standards, 5% blank samples and 5% field duplicates were inserted in sequence with RC and diamond core samples to test the precision and accuracy of the TWL facility over the period of the Azumah drilling campaign. All quality assurance-quality control (QAQC) data was routinely monitored. All QAQC data was scrutinised by ResEval with the conclusion that the assay data is within acceptable limits for the purpose of the resource estimation.
- Mineralised polygons were digitally drawn on individual East-West sections spaced 25m apart for the whole length of the Kunche mineralisation around a nominal 0.5 g/t gold grade envelope consistent with the geological model prior to wire-frame construction.
- Weathering boundaries were digitally constructed from geological logs.
- Topographic surface was constructed from high-precision drill hole collar data.
- Down-hole composite assay data was analysed statistically and geo-statistically to determine grade cut-off, grade interpolation parameters and methods.
- Ordinary Kriging (OK) was determined as the most effective method of grade estimation with an oriented search ellipse based on individual lode geometry, with the first-pass radius of 75m and a second-pass radius of 150m. Although a third-pass radius of 300m was used, grade was determined in most blocks using the first two runs.
- The block model was created using Surpac software to encompass the full extent of the deposit. Primary block sizes were 25m (NS) x 5m (EW) x 25m (Vertical) with respective sub cells of 6.25m x 2.25m x 6.25m.
- Bulk density values used are 1.6t/m3, 1.4t/m3 and 2.4t/m3 for oxide, transitional and fresh mineralisation respectively. These densities were derived from extensive bulk density measurements collected from diamond core samples and trenches at the Kunche Deposit.
- The previous Inferred Mineral Resource estimation of 2.55Mt @ 2.7g/t gold for 225,000 ounces was undertaken by Croesus Mining NL in December 2004 using 50 RC holes (including five with diamond tails) drilled by Ashanti Goldfields-AGEM between 1997 and 1999 (NRC001 to NRC049, NRCD044, NRCD045, NRCD048, NP024 and NP041). The resource was estimated by ID2 methodology using a 40g/t gold upper cut on assay data and reported using a 1.0g/t gold cut-off grade.
