Name and Location
Wa gold project, Ghana.

Client
Azumah Resources.

Project Description
Provisional feasibility study results on the Wa gold project have confirmed a solid project with no technical, social or environmental impediments to development; improved fundamentals such as mine life, ore grade and strip ratio; and operating and capital costs in line with, if not better than, guidance provided when the ore reserves were issued last year.

The study comprises a rigorous technical review of the project to assess the impact of the considerably increased Julie mineral resource, expanded mining inventory and extensive confirmatory metallurgical testwork. This compares favourably with the production estimate of 74 000 oz/y and a mine life of six years estimated in the 2012 feasibility study.

Based on an inventory of 652 000 oz of gold, the Wa project is expected to deliver an average of 90 000 oz/y of gold over a seven-year mine life.

The project is based on a conventional carbon-in-leach gold plant, located adjacent to Azumah’s flagship 1.4-km-strike Kunche deposit, which will treat 1.2-million tonnes a year of primary ore and up to 1.8-million tonnes a year of softer oxide and transition ore.

Ore will be sourced from the staged mining of a series of shallow openpits at Kunche, Bepkong and Aduane, all in the Wa Lawra district, with ore from Julie and Collette, in the Wa East area, trucked on mostly public roads to the Kunche plant.

The existing two-million-ounce mineral resource has highlighted that any further reductions in operating costs will continue to increase mineral resources, convert these to ore reserves and increase mine life.

Net Present Value/Internal Rate of Return
Not stated.

Value
$142-million.

Duration
Not stated.

Latest Developments
Azumah has reduced the expected capital costs at its Ghana-based Wa gold project by an estimated $54-million to $142-million.

The company achieved a $28-million saving by incorporating a contractor mining fleet into the mine plan, as well as rescheduling ore mining during construction.

No changes have been made to the plant design or supporting infrastructure, and the project is still expected to deliver around 90 000 oz/y over a seven-year mine life, through a 1.2-million-tonne-a-year plant.

The $54-million capital reduction has significantly repositioned the Wa project for development.

The recent high-grade discovery at Manwe, the requisition of the high-grade 69 000 oz Julie West resource, a firmer gold price and improved investor sentiment towards overseas gold projects has considerably enhanced the prospect of securing project finance or a development partner Azumah MD Stephen Stone has said.

While C1 cash operating costs are not expected to materially change from the $696/oz estimate established in the 2015 feasibility study update, Azumah has noted that, overall, a material reduction in the all-in sustaining costs and an increase in the net present value and internal rate of return are expected, owing to the much lower capital costs.

The project’s financial model is currently being updated.

Meanwhile, Stone has noted that a development decision on the Wa project is contingent on financing and the finalising of all permits, in particular the environmental permitting.

The company is investigating several financing options, including a possible development partnership, while also awaiting a response on its environmental permitting application.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Azumah Resources, tel +61 8 9486 7911, fax +61 8 9481 4417 or email info@azumahresources.com.au.