From http://www.highgrade.net/article/2011-04-14/Wa_wow_on_the_way
More upgrades due soon. Price going back up to high 60s. Get in while it is unbelievably low.
Wa wow on the way Staff reporter, 14th Apr 2011 AZUMAH Resources is within a few short months of completing the feasibility study for its Wa gold project in Ghana, and all things being equal, a significant re-rating at the same time. The company reported strong infill drill results from it Kunche deposit last week, and despite a hit of 14m grading 32.4gpt and a comment that ?modelling of mineralisation to date has been very conservative?, the market didn?t exactly fall over itself to climb on board the story. However, that should change. Managing director Stephen Stone said the expectation was that the delivery of the feasibility study in July/August would be a ?game changer?. The feasibility is studying the economics of a one million tonne per annum operation costing in the order of $US85 million and producing 70-80,000 ounces per annum at cash costs of $US550-600/oz ? with gold this week trading at over $US1450/oz. Resource growth at Wa towards the 2Moz mark is then expected to underpin expansions in the production plan to over 100,000ozpa. According to mining investment firm Argonaut, the equation is obvious. ?Azumah offers relative and absolute value,? it told clients last week. ?The enterprise value per resource oz is $US138/oz versus a West African peer average of $US202/oz (despite AZM?s relatively advanced status and low country risk).? Azumah had working capital this month of $A32 million, and a market capitalisation this week of $A182 million.
AZM could well be a potential takeover target with Goldfields acquiring a big stake in IAMGOLD
