Wa Gold Project, Ghana

See also:

• Feasibility Study and Maiden Reserve Announcement, 27 August 2012
• Wa Gold Project Fly-through Movie
• Wa Gold Project NI 43-101 Technical Report

The Wa Gold Project is located in northwest Ghana, West Africa, and covers a total land holding of 3,157 km², including over 100km of strike of prospective Birimian greenstone belt - a geological setting known to host world class gold deposits throughout Ghana and West Africa.

The Wa Gold Project contains a JORC & National Instrument 43-101 compliant Measured and Indicated Mineral Resource totaling 23.7Mt at a grade of 1.78g/t Au for 1,355,000 oz Au and Inferred Mineral Resource of 16.7Mt at a grade of 1.58g/t Au for 859,000 oz - across three key deposits, Kunche, Bepkong and Julie.

Azumah's aim is to upgrade this resource base through further exploration to further enhance plans to establish a Stage 1, 80,000 - 100,000 ounce a year operation and then to expand this to consistently produce over 100,000 ounces a year.

Wa Gold Project Highlights

• Land holding of 3,157 km², including over 100km strike of prospective Birimian greenstone belt - a geological setting known to host world class gold deposits throughout Ghana and West Africa.
• Less than 10 percent has been even effectively explored.
• Gold resources at the Kunche deposit comprise a Measured and Indicated Mineral Resource of 10.65Mt at 1.66g/t Au for 567,000 oz and an Inferred Mineral Resource of 4.86Mt at 1.17g/t Au for 183,000 oz with the mineralisation extending to over 200m below surface and remaining open at depth.
• Gold resources at the Bepkong deposit comprise a Measured and Indicated Mineral Resource of 3.92Mt at 1.59g/t Au for 200,000 oz and an Inferred Mineral Resource of 1.17Mt at 1.17g/t Au for 44,000 oz, with mineralisation extending to over 200m below surface and remaining open at depth.
• Gold resources at the Julie deposit in the Wa-east area comprise a Measured and Indicated Mineral Resources of 9.13Mt at 2.0g/t Au for 587,000 oz and an Inferred Mineral Resource of 7.24Mt at 1.97g/t Au for 458,000 oz.
• Gold Inferred resources at the Colette deposit of 1.69 Mt at 1.45g/t Au for 79,000 oz, with mineralisation remaining open-ended.
• Gold Inferred resources at the Aduane deposit of 1.77 Mt at 1.50g/t Au for 85,000 oz.
• High-grade near-surface and deeper gold intercepts from the 2km zone separating the Kunche and Bepkong deposits (see diagram), including
  •   3m @  9.17g/t Au from 27m (BRC321)
  • 10m @  4.43g/t Au from 140m (BRC315)
  •   4m @  4.43g/t Au from 43m (BRC317)
  •   8m @  4.18g/t Au from 40m (BRC329)
  •   6m @  2.78g/t Au from 23m (BRC361)
  •   4m @ 10.33g/t Au from 47m (KRC593)
  • 14m @  2.15g/t Au from 62m (KRC600)
  •   4m @  9.34g/t Au from 20m (KRC648)
• Mineral Reserve update is underway and due for completion in Q2 2013.
• Several advanced-stage, drill confirmed targets with strong potential for near-term, low-cost, near-surface resource delineation.
• Considerable exploration upside, with numerous defined targets and untested geochemical gold anomalies.
• Exploration programme for 2013 is focused on increasing Minerals Resources and Minerals Reserves.
• Feasibility Study completed on a 1.0Mtpa gravity/CIL gold plant. (See Feasibility Study below.) A Feasibility Study update is underway and due for completion in Q2 2013.

Please see our December 2012 Quarterly Activities Report and June 2012 Quarterly Activities Report for more information.

Feasibility Study

A Feasibility Study into the Wa Gold Project was completed in Q2 2012. A Feasibility Study update is underway and due for completion in Q2 2013.

• 430,000oz gold Mineral Reserve supports initial six year life at an average feed grade of 2.0g/t gold with 2.5g/t gold in first year
• Mineral Reserve upgrade targeting an additional two years mine life planned early 2013
• 92,000oz produced in year 1 at average cash cost of $624 per oz
• Production averages 74,000oz per annum for first four years at $782 per oz. Life-of-Mine costs of $802 per oz
• Total establishment capital cost of $144M
• 92.4% gold recovery from conventional gravity - CIL plant
• Excellent access, infrastructure and operating environment
• No communities to relocate
• Study completion enables advance of Mining Lease and other key approvals

Key Outputs

Summary by Deposit

Reserves and Resources

*Values have been rounded

January 2013 Mineral Resource Estimate (0.5g/t Au cut off) – Estimated by CSA Global Pty Ltd

Competent Person's Statement

The scientific and technical information in this report that relates to the in-situ Mineral Resource estimates for the Kunche, Aduane and Julie deposits is based on information compiled by Mr Dmitry Pertel, who a full-time employee (Manager - Resources) of CSA Global Pty Ltd. Mr Pertel is a Member of the Australian Institute of Geoscientists and 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 to qualify as a "Qualified Person" as defined in National Instrument 43 -101 – Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators. Mr Pertel has reviewed and approved the disclosure of the relevant scientific or technical information contained in this announcement that relates to the Kunche, Aduane and Julie Mineral Resource estimates.

The scientific and technical information in this report that relates to the in-situ Mineral Resource estimates for the Bepkong deposit is based on information compiled by Mr David Williams, who is a geological consultant employed by CSA Global Pty Ltd. Mr Williams is a Member of the Australian Institute of Geoscientists and the Australian Institute of Mining and Metallurgy and 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 to qualify as a "Qualified Person" as defined in National Instrument 43 -101 – Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators. Mr Williams has reviewed and approved the disclosure of all scientific or technical information contained in this announcement that relates to the Bepkong Mineral Resource estimate.

The scientific and technical information in this report that relates to the geology of the deposits and exploration results is based on information compiled by Mr Nick Franey, who a full-time employee (General Manager Geology) of Azumah Resources Ltd. Mr Franey is a Member of the Australian Institute of Geoscientists and 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 to qualify as a "Qualified Person" as defined in National Instrument 43 -101 – Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators. Mr Franey is the Qualified Person overseeing Azumah's exploration projects and has reviewed and approved the disclosure of all scientific or technical information contained in this announcement.

For further information, including a description of Azumah’s standard data verification processes, quality assurance and quality control measures, and details of the key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves set out in this report and the extent to which the estimate of previously declared Mineral Resources and Mineral Reserves set out herein may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or relevant issues, readers are directed to the technical report titled "Wa Gold Project, Ghana 43-101 Technical Report", effective as of 27 August, 2012, available on www.sedar.com.

The reported Mineral Reserves have been compiled by Mr Harry Warries. Mr Warries is a Fellow of the Australasian Institute of Mining and Metallurgy and an employee of Coffey Mining Pty Ltd. He has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Qualified Person as defined in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards of November 2010, as well as a Competent Person as defined in the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’ of December 2004 ("JORC Code") as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia. Mr Warries gives Azumah Resources Limited consent to use this reserve estimate in reports.

JORC Code / CIM

The Mineral Resources outlined in the report are JORC Compliant and not disclosed utilising the Mineral Resource and Reserve categories of the Canadian Institute of Mining (CIM) Definition Standard: A reconciliation of the CIM Mineral Reserve categories and the JORC Code is as follows:

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