AZM - Azumah Resources

[yogi-in-oz]

Hi folks,

AZM ..... will be alert for some positive news,
around 15092006, as two significant cycles
come into play .....

happy days

yogi

[kennas]

Looks like it has the potential to come up with a 1m oz resource and be a stand alone operation in the future.

This ann out this am:

Quote: Drilling Extends New Bepkong Discovery Azumah Resources Limited (ASX: AZM) is pleased to announce excellent results from the first 21 of a recently completed 36-hole reverse circulation and diamond drilling programme at the Bepkong gold discovery at its Wa-Lawra Gold Project in north-west Ghana including: �� 32m at 2.40g/t gold from surface, incl 4m at 6.31g/t gold from 20m; �� 20m at 2.90g/t gold from 44m, incl 4m at 10.70g/t gold from 52m; �� 24m at 2.24g/t gold from 28m; and �� 12m at 1.71g/t gold from 12m. These holes were drilled to follow-up an intersection of 16m @ 4.9g/t gold from 50m, including 10m @ 7.1g/t gold from 54m, obtained from the first hole drilled into the northern end of the 1,400m Bepkong power-auger gold-in-soil derived anomaly, just 2km north of the 500,000 ounce Kunche resource (Fig 1). A diamond tail extension to this hole returned 4m at 1.41g/t gold from 81m. “This definitely heralds Bepkong as a new, near-surface discovery at Wa-Lawra and gives us enormous confidence that we can achieve our next objective of delineating a one-million ounce resource to underpin a possible stand-alone mining operation within our 100% owned, 2,800 km2 licence area,” commented Azumah Executive Chairman, Mr Stephen Stone.

[So_Cynical]

Most of the hits are shallow too....AZM almost certainly have 1 Mill Ozs.

why the hell i didn't buy at the ridiculous prices a few weeks ago...ill never know.
if nothing else AZM must be a take over target for a cashed up, mid tier Goldie.

[kennas]

Quote: Originally Posted by So_Cynical Most of the hits are shallow too....AZM almost certainly have 1 Mill Ozs. why the hell i didn't buy at the ridiculous prices a few weeks ago...ill never know. if nothing else AZM must be a take over target for a cashed up, mid tier Goldie.

[cordelia]

Quote: Originally Posted by kennas On 1m oz, their mc (@.13 = $10.5m) to oz au ratio is.....10.5? That seems pretty damn low to me. Actually, it's half that of any other goldie that I have on my resource to mc comparison table..

[jman2007]

Quote: Originally Posted by kennas On 1m oz, their mc (@.13 = $10.5m) to oz au ratio is.....10.5? That seems pretty damn low to me. Actually, it's half that of any other goldie that I have on my resource to mc comparison table..

[So_Cynical]

Quote: Originally Posted by kennas Yep, I agree, a bit of speculation, but anyone else in the region who could take them? How far away is the new LGL/EQI?

[kennas]

Quote: Originally Posted by jman2007 This is basically an indice that allows a value comparison to be made based on a companies market cap to their attributable resources (in this case, the 1 million ounces is a hypothetical figure, and is based on potential resources that could be uncovered at Bepkong and Kinche). So we have: $10,500,000/1,000,000 oz = 10.5 So as the number tends towards zero, this represents increasing "value" or more simply; more bang for you hard-earned buck. I don't really use this index myself, so Kennas pls correct me if my explanation is incorrect or misleading, but I definitely do see the value of what it can provide for investing purposes.

[jman2007]

Quote: Originally Posted by kennas On another point, how refreshing is it that management are a bunch of geologists, instead of ex bankers, traders, and dot com wreckage!

[kennas]

I didn't realise AZM were tied up with the opes thing. eeeek.

Number of shares as at end of trading on 4 April 2008 in respect of which ANZ has an interest as a result of transactions entered into pursuant to the Opes Prime AMSLAs
5,700,000

Total number of issued ordinary shares as at 4 April 2008 (based on publicly available information)
81,000,000

Percentage of ordinary shares
7.037%

I had a small order in there at 9.4 that was taken and I could have done better by the looks.

Has come off a bit already, and this only makes it cheaper IMO. MC to oz au, on 9.2 c with 500k JORC is 14.9. Any lower?

And they're likely to get over 1m oz au, so it's looking compelling IMO.

[TheAbyss]

I am astounded at some of the companies on the ANZ list. Some of them are a long way off producing anything. To borrow money for a bet on a race horse is pretty silly and obtaining a ML for some of the high risk explorers on that list is just as rash imo.

Having said that it will crate an opportunity for some and heart acvhe for others.

AZM have been declining for more than 12 months prior to Opes so why buy now? I would welcome some positive points.

[TheAbyss]

List of companies form ANZ attached if you have not had the chance to snag it elsewhere.......How many words to make 100?

[kennas]

Quote: Originally Posted by TheAbyss I would welcome some positive points.

[TheAbyss]

Thanks Kennas. Any reasoning on the slow decline or just a lack of patience from investors perspective? Looks promising and one for the black book if some confidence in the market generally can be found

[jman2007]

Quote: Originally Posted by TheAbyss Thanks Kennas. Any reasoning on the slow decline or just a lack of patience from investors perspective? Looks promising and one for the black book if some confidence in the market generally can be found

[kennas]

Quote: Originally Posted by kennas I didn't realise AZM were tied up with the opes thing. eeeek. Number of shares as at end of trading on 4 April 2008 in respect of which ANZ has an interest as a result of transactions entered into pursuant to the Opes Prime AMSLAs 5,700,000 Total number of issued ordinary shares as at 4 April 2008 (based on publicly available information) 81,000,000 Percentage of ordinary shares 7.037%

[vegemite]

AZM, (along with PRU and IGR) get mentioned in the latest issue of (9th April 08) of StockAnalysis. Main points:

* going gangbusters on exploration front but this hasn't been reflected in the share price
* pleasingly higher grades are dragging the resource towards 1 million ounces
* stock price kept down by being caught up in the Opes Prime situation
* he (Peter Strachan) thinks it represents bargain buying

approx $7.8 million mkt cap (at friday's 9.7 cents), with $2.5 million cash so an enterprise value of only $5.3 million. On this basis, I've bought a few (not too concerned about the Opes angle as a temporary factor which might just provide good buying opportunities)

Cheers, V

[jman2007]

The Opes collapse is unfortunate for AZM,

I had no idea that they were tied up with this either. Over the short-term it may turn into a bit of a waiting game as you mention Kennas, as we discover how ANZ will play their cards. Over the long-term, I can't see it doing too much damage to the AZM cause though.

I'm still not entirely convinced by the AZM story...yet . I would be a lot happier if they had another deposit like Kinche in their hip pocket, but that's just me being me .

With a MC of this size, I imagine there would be a few other bigger fish watching AZM closely as well, still agree this is looking cheap on a peer-comaprison basis.

jman

[vegemite]

thanks jman,

would be interested of course to hear what your reservations regarding AZM might be.

i'm going to the gold coast resources showcase in mid june. azumah are presenting there (along with 40 other companies) so i'll be taking the opportunity to find out as much as i can etc,

cheers, v

[jman2007]

Quote: Originally Posted by vegemite thanks jman, would be interested of course to hear what your reservations regarding AZM might be. i'm going to the gold coast resources showcase in mid june. azumah are presenting there (along with 40 other companies) so i'll be taking the opportunity to find out as much as i can etc, cheers, v