Modern Mining February 2019

MINING News

Ghanaian gold project hits one million ounce mark development decision. We also have sev- eral opportunities to materially enhance the project, not the least through con- tinued exploration of our vast 2 400 km 2 prospective tenure - and these are all being vigorously pursued.”

sidiary, Azumah Resources Ghana Limited (AZG). Perth-managed private equity group Ibaera Capital can earn a direct interest in the project by funding AZG – and hence the project – through to a development decision. Access to the project is excellent with a sealed road from Ghana’s capital, Accra (680 km to the south), a commercial airport at Tamale (300 km to the east) and a soon- to-be-operational commercial airport at Wa (45 km to the south). 

ASX-listed Azumah Resources reports that ore reserves at its Wa gold project in Ghana have been boosted 65 % or 404 178 oz to 1,03 Moz of gold. A Feasibility Study Update (FSU) based on the ore reserves is well advanced and has outlined a very robust, 11-year operational life, open-pit mine producing an average of 107 000 oz gold per year in its first six years and returning a pre-tax NPV 5% of US$177 million, an IRR of 35 % and a pre-tax net cash flow of US$270 million, inclusive of government royalties. According to Azumah, the project compares extremely well with its oper- ating peers given its low establishment capital intensity of US$114 per ore reserve ounce and an All-In Sustaining Cost (AISC) of US$886/oz underpinning strong operating margins that will see its US$117 million establishment capital paid back in 1,6 years. The average grade of ore processed over the first eight years of operations is 2,06 g/t Au, the average life-of-mine (LOM) gold recovery is 91%and the aver- age LOM plant throughput is 1,6 Mt/a, with the plant being able to treat up to 2,3 Mt/a of softer oxide ore. “The Wa gold project is now trans- formed into an extremely compelling development opportunity, without even considering the evolving pros- pect of underground mining presented by the recent discovery of high-grade below-pit mineralisation at Kunche and Bepkong,” says Azumah’s Managing Director, Stephen Stone. “Full credit to our joint venture part- ner and Project Manager, Ibaera Capital, which has increased ore reserves by 65 % to over 1,0 Moz and redefined the project with operational and financial metrics that unequivocally reposition it up with its peers. “The Wa gold project is now well primed to be Ghana’s next commer- cial-scale gold mine, with mining leases already granted, EPA permits well advanced, grid power to site and the strong support of the Ghana government. “The remainder of 2019 will be dedi- cated to finalising the Feasibility Study and putting everything in place for a

The project is located in the Upper West Region of Ghana and has its exploration base approximately 45 km north of the regional capital of Wa. It is 100 %-owned by Azumah Resources through its wholly owned Ghanaian sub-

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