AZM - Azumah Resources

[kennas]

Quote: Originally Posted by kennas Yeah, holiday was great mate. Thanks for asking!

[kennas]

Quote: Originally Posted by kennas Hi kennas, I see you've changed your tiger. I prefer this one to the last. Nice beast!

[shag]

at least it wasnt leaked, as the only trade before this was a pidly partorder of mine and it wasnt going far friday.

[kennas]

Quote: Originally Posted by shag at least it wasnt leaked, as the only trade before this was a pidly partorder of mine and it wasnt going far friday.

[jman2007]

These guys seem to travelling along quite nicely

Yeah I also noticed the 'slightly' out-of-date figures they were using for their peer comparison in the presentation. The other unusual aspect of the drilling results release was the description of their tenure as being "geologically fertile", I know what they mean, but it's an odd way to put it!

I really hope they manage to tie something together at Julie, and a couple of those Collette hits are damn impressive too. I'd like to see some more cross sections tbh, as it is difficult to draw too many conclusions from a plan view although Julie "East" looks to be shaping up as the more prospective/advanced project at this stage.

We have a very significant shear zone running through some of our tenure in the Goldfields too. We have found that very large sections of the shear along its length (strike length) are indeed mineralised with gold, but in sub-economic quantities. Generally, things like cross cutting faults or dilational jogs and bends in these types of shear structures will help in focussing the mineralising fluids and result in the gold being precipitated, hopefully giving you a nice little gold deposit.

Lets hope that the Julie shear doesn't turn into another "also ran", but it looks quite encouraging at this stage!

Don't hold this one, yet

[kennas]

Yeah, Julie 'East' looks the most promising. Some outstanding historical drilling from Crew in that area with quite a few of 10m @ 10g/t plus. One of 10m @ 40 g/t, another at 32 g/t. Fingers crossed AZM can pull up a few like that.

[kennas]

Have to laugh at the broker/bot trading that goes on during these times.

First trade today 84 shares @ 11c for $9.24 consideration, (less brokerage) to push the price down 4%.

Poor punters out there will be crapping themselves. Sell, sell, sell. LOL

[Miner]

Quote: Originally Posted by kennas Have to laugh at the broker/bot trading that goes on during these times. First trade today 84 shares @ 11c for $9.24 consideration, (less brokerage) to push the price down 4%. Poor punters out there will be crapping themselves. Sell, sell, sell. LOL

[kennas]

Nice to be noticed in the news. Just need some investors to actually buy some shares in this puppy..


Gold rush: Ghana in spotlight
THE DIRT: Robin Bromby | July 07, 2009
Article from: The Australian

IT'S not quite Bendigo in the 1850s or the Klondike in 1897, but Ghana seems the nearest we've got these days to a red blooded gold rush.

The fact that separates Ghana today from the gold rushes of the past is that, of course, the West African country is already an established producer of the yellow metal. But there is enormous exploration remaining -- like in much of West Africa.

The pace is really picking up there -- and, fortunately, Australian companies are in the vanguard of the charge.

The leader of the Australian pack in Ghana is Perseus Mining with more than 5m ounces of gold and plenty of money in the bank.

We have just seen Azumah Resources report some spectacular drilling results from its Wa project in Ghana, including an intersection of 12m at 13.13 grams/tonne, with 3m of that assaying at 45.9g/t, or 1.50z a tonne.

Blackswan Equities’ latest note on AZM is headed: “Azumah -- Potential to punch above its weight?” It puts a price target at between 17c and 28.5c a share.

Azumah’s project lies in the northwestern corner of Ghana running up to the border with Burkina Faso. South of its Wa project lies another gold play -- also, confusingly, called Wa -- owned by Perth-based Castle Minerals, a company that has 8000sq km and which, so far, has discovered a virgin high grade vein called Julie West with 400,000 tonnes at 4.5g/t in the 50m immediately below surface. Further details will be available in CDT’s quarterly later this month.

[kennas]

AZM looking like a turkey on the long term chart. A turkey. IPOd at 20c and went to 40, before a constant run down to 4c, and now hovering about 10. I wonder what it is that punters don't like? Maybe because it's outside the SW Ghana sweet spot where all the majors are playing. Maybe there's lack of infrastructure and any capex is going to be a killer. There's no producing mines nearby that I know of where excess mil capacity could be used so that's going to be one hell of a committment and dilution eventually. Even if they get to development. Maybe it's the ex Croesus players, who seem to be managing to keep CDTs market cap under lock and key as well. They've convinced Macquarie to invest so they must be able to deliver a good powerpoint presentation. I'm troubled by the lack of support. Gotta be a reason. Half the mc as GRY with the practically the same resource base, and prospects.

[Miner]

Quote: Originally Posted by kennas AZM looking like a turkey on the long term chart. A turkey. IPOd at 20c and went to 40, before a constant run down to 4c, and now hovering about 10. I wonder what it is that punters don't like? Maybe because it's outside the SW Ghana sweet spot where all the majors are playing. Maybe there's lack of infrastructure and any capex is going to be a killer. There's no producing mines nearby that I know of where excess mil capacity could be used so that's going to be one hell of a committment and dilution eventually. Even if they get to development. Maybe it's the ex Croesus players, who seem to be managing to keep CDTs market cap under lock and key as well. They've convinced Macquarie to invest so they must be able to deliver a good powerpoint presentation. I'm troubled by the lack of support. Gotta be a reason. Half the mc as GRY with the practically the same resource base, and prospects.

[jman2007]

This Blackswan Equities broker report from their website has some useful information. It looks like the author of the report actually went and visted the majority of their prospects, and included several interesting photos in the report:

http://www.azumahresources.com.au/wp...wan_240609.pdf

The author of the report obviously knows a bit a about geology (probably a former Geo himself?), and it shouldn't be understated that Bepkong was a "blind" discovery -meaning that the mineralisation has no surface expression. But the point is, that Azumah's approach is obviously the right one for the area - so there is a fairly reasonable chance of future discoveries imo (their land holding is fairly significant right?).

The infrastructure, or lack of is an interesting point. The regional center of Wa has about 50,000 people, so it's not exactly just a few huts sitting on the side of the road. Maybe it's partly to do with Azumah not being in the "fashionable" part of the greenstone belt? If they find another 'hidden' 500Koz deposit though, that'll do wonders for their profile.

[kennas]

Quote: Originally Posted by jman2007 This Blackswan Equities broker report from their website has some useful information.

[shag]

Quote: Originally Posted by Miner Me confused too. I put a buy at 10.5 cents thinking it will never come and market was so upbeat. I was shocked to see my buy order was executed. Today price dropped on a good day what happens to AZM tomorrow

[Miner]

Quote: Originally Posted by shag i was in exactly the same boat, 10.5, top of list, and forgotten. appologies for post yest, a bit pragmatic/callous. someone was dumping/offloading stock.

[kennas]

Quote: Originally Posted by Miner Thanks Shag and no worry. I think both Kennas and Jman are very bullish on AZM and they have the ears right on the ground. So let us enjoy the 10.5 cents price for some times considering that will be the ground floor for the price.

[kennas]

Todays ann was titled:

Further Drilling Success.

I suppose they have hit some gold, but not very inspiring for me.

I want 100m@10g/t from surface thanks!

I suppose they are finding that the gold zone trend line continues and they may add incremental ounces, but it's currently not looking like multi million ounce potential. Just a million or so. Need another big find to be put on the map I think.


DRILLING CONTINUES TO ENHANCE WA GOLD PROJECT, GHANA

Results reinforce scope to expand existing 754,000oz gold JORC Indicated and Inferred mineral resource

• 29m at 4.02g/t gold from 6m intersected in Kunche oxide zone
• 3m at 1.33g/t gold from 16m confirms mineralisation at new Bepkong North target
• Shallow, high-grade mineralisation up to 1m at 7.78g/t gold from 3m intersected at new Kunche West target
• Up to 4.63g/t gold returned by rock chips from recently identified quartz veins located south of Bepkong

[kennas]

AZM struggling while the market runs.

Troubling.

170m fully diluted @.10c = $17m MC
Cash $6m = $11m EV.

750k ounces = $14 an ounce.

This is going to be upgraded this year with potential for 1m oz au.

I've read $30 an ounce is market average for explorers in W Africa, but the analyst above puts $40 an ounce on companies with over 1m oz au.

Check their numbers above for the rough valuation.

It's undervalued, or it's a turkey.

[kennas]

Looks like all results in from the last drilling and we need to wait till the Sept drilling campaign is over to get some more results. They should be put together to establish the first JORC for the Julie prospect and add ounces at Bepkong and Kunche. So, a bit of a wait for any news to give them a catalyst for re-rating.

29 June ann:

Quote: A major, multi-rig drilling campaign is planned to commence at the Wa Project in late September 2009 after the cessation of seasonal rains. It will focus on the Julie and Collette prospects where there is a good opportunity to define near-surface mineral resources complimentary to the existing 754,000 ounce gold mineral resource defined at the Wa-Lawra Gold Project, 65km to the north-west.

[kennas]

Prelim Mining Study out. That's quick.

Initial cash costs look pretty high to me, and I am sure they will increase over time, as they always do. Under US$500 is OK I suppose.

Positive out of this is that it's on the previous resource and does not include any of the recent drilling or adding in what they come out with at Julie, which is good grade and shallow and will be able to be trucked to the Kunche/Bepkong Camp Mill.

No capital cost estimates for the 1m tn mill. That could come in at the operating surplus!

Need another decent discovery I feel, or they're looking marginal.


PRELIMINARY MINING STUDIES INDICATE ROBUST OPERATING MARGINS FOR WA GOLD PROJECT, GHANA

Mineral Resources Approaching Critical Mass for Development

�� Operating surplus of approximately A$138 million (US$112 million) generated from Kunche and Bepkong resources (1)
�� 292,000oz of gold recoverable at cash cost of A$593/oz (US$483/oz)
�� Forecast production of 4.5 million tonnes at 2.24g/t gold
�� Low life-of-mine strip ratio of 4.2 : 1
�� Scoping Studies underway
�� Substantial drilling programme targeting additional gold resources to commence next month