new pog highs should see azm sp explode

Here's a timely reminder of what we're sitting on here....

I anticipate more results are iminent plus the anoouncements on the FS and the ESIA.

It's time to blast off. CHOMP!


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Azumah Resources: WA gold project feasibility study rapidly advancing
Wednesday , 15 Dec 2010
Highlights:


?Feasibility Study on 70,000ozpa-plus project on-track for delivery early next year
?Final capital and operating costs available mid-January 2011
?First production set for early 2013
?Definitive level metallurgical test work close to completion and site engineering investigations substantially completed
?Plant and infrastructure being designed to accommodate production expansions in line with expected resources growth
?Ghana government to upgrade local power infrastructure negating need for stand-alone power generation and meaning reduced capital and operating costs
?Strong flow of drilling results over coming months from aggressive exploration programs aimed at increasing current 1.2Moz resource base



Azumah Resources (ASX:AZM) is pleased to report that it is solidly on track to become a West African gold producer in early 2013, with the Feasibility Study (FS) on its Wa Gold Project rapidly advancing and due for completion early in 2011.

Definitive capital and operating cost estimates will be available in January 2011 following the finalisation of metallurgical test work with all responses to budget enquiries for key mining contract and major equipment items already received.

Azumah is also pleased to advise that its aggressive, multi-rig, double shift drilling programs at Wa (Figure 1) are well underway and that it is planning to release a summary of the new exploration season's first drilling results before Christmas.

The primary aim is to expand the existing 1.2Moz resource base and to achieve a conversion to reserves of resources captured by current preliminary open pits designed for the Kunche, Bepkong and Julie deposits.

Mine life, based on an initial output of 70,000 to 80,000oz gold per year, already stands in excess of six years and Azumah is confident that this life will be increased as extensions are made to existing open-ended deposits, new mineralisation is delineated in the vicinity of these and exploration progressively steps-out within the Company's extensive 3,100sqkm land holding - of which less than 10% has been effectively explored.

The FS is based on a process plant and appropriate infrastructure capable of initially treating 1.0Mtpa of primary ore and approximately 1.4Mtpa of softer oxide ore with the scope provided to design engineers, Lycopodium Limited, requiring that the plant and infrastructure be designed to enable increased throughput in line with any expansion of resources.

The project has been given a major boost by the Ghana Government's intention to upgrade the existing power transmission infrastructure. This is likely to negate the requirement for Azumah to build a stand-alone power generation facility, reducing the project's capital cost and power expenses significantly.

Progress in several other key project development areas includes:----

The Ghanaian Environmental Protection Authority has now provided Azumah with a response to the Environmental and Social Scoping Study (ESIA) submitted in May 2010. No major issues were raised by the EPA and the full ESIA remains on track for submission in early 2011.

Major equipment sizing is well advanced with sizing of a SAG Mill capable of treating the target tonnages completed.

Tailings storage facility (TSF) design is underway following characterisation testing of representative tailings samples and geochemical test work on waste and tailings is in progress.

Site geotechnical investigations have been completed for the open pits, plantsite and the TSF site and hydrogeological investigations will be completed early in 2011.------



Based on completion of the FS and the ESIA in early 2011, and subject to the estimated permitting timeframes being achieved, construction is scheduled to commence in early 2012 and commissioning to occur in early 2013.

"Azumah continues to aggressively explore its highly prospective Wa Gold Project to boost its 1.2Moz resource base and at the same time is fast-tracking its feasibility study to enable it to make a production decision in the first half of 2011," Azumah Managing Director Stephen Stone said.

"This means that after Adamus and then Perseus, Azumah could be the next cab of the production rank among the Australian resource companies active in Ghana."


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