Wed02082012

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WA’S NEW GOLD PROVINCE IMAGE BOOSTED

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Wa, the Upper West regional capital's growing international image as the emerging North Western gold province of Ghana has received yet a further boost as the Australian concession holder, Azumah Resources, announce it has hit gold at two new prospects located between its flagship Kunche and bekpong deposits in the heart of its Wa Gold Project.


Wide spaced Rotary Core(RC) drilling at the Aduane target the company disclosed, has returned intercepts including 14m at 2.31g/t Au from 13m (KRC478) and 16m at 2.34g/t Au from 23m (KRC480).

At Bepkong South, drilling returned a best intercept of 6m at 15.60g/t Au from 53m (BRC230) (Tables 2 and 3; Figure 2).

The Aduane prospect is located 1km north-east of the Kunche deposit and extends for 300m along a north-northeast trend, while the Bepkong South prospect is 500m due south of the main open pit planned for Bepkong and immediately east of a planned satellite pit.

"These latest exploration results confirm Azumah's belief that more 'blind' satellite gold deposits like the 212,000oz Bepkong deposit are likely to be discovered in the immediate vicinity of the planned gold plant." said Azumah Managing Director, Stephen Stone.

“The thicknesses of the best intercepts from Aduane are particularly impressive and bode well for the delineation of another mineable deposit. “He added.

The Wa Gold Project is located in northwest Ghana, and covers a total land holding of 3,200 km2, including over 100km of strike of prospective Birimian greenstone belt - a geological setting known to host world class gold deposits throughout Ghana and West Africa.

The Wa Gold Project contains a JORC compliant Indicated and Inferred resource of 1.2 million ounces of gold - including 516,000 ounces at the Kunche deposit, 350,100 ounces at the Julie deposit and 212,000 ounces at Bepkong.The project promises to be the first and by far the largest commercial scale mining activity in the Northern sector.

Azumah's aim is to upgrade this initial resource base to underpin plans to establish an initial 70,000 ounce a year operation and to expand this to over 100,000 ounces a year

Azumah is solidly on track to become a West African gold producer in 2013, and is now in the final stages of drawing together the key components of the Feasibility Study on its Wa Gold Project.

Azumah's geologists are reviewing all recent and historical exploration data and finalising exploration programmes and budgets for the next exploration season. More drill rigs in addition to the five already committed to the project are likely to be contracted.

The Company's 50 man and 25 man exploration camps at its Wa Gold Project Kalsegra headquarters and over at the Julie licences respectively are now fully operational. These will provide important support to the Company's expanded exploration activities. An aircore rig is already back on site and about to drill several new targets.

Azumah is also establishing a third field camp in the northern extremities of its 3,200km2 licence area as much of this area has not been explored to any reasonable level.

In a separate development, a number of leading foreign multinational mining companies already operating down south of Ghana, have come under constant criticism and accusation of corporate abuse, by environmental groups and development NGOs notably the UK based ACTION-AID.

In a report titled, “Gold Rush: The Impact of Gold Mining on the Poor People of Obuase” following an independent research undertaken by ACTION-AID, the organization accuses AngloGold Ashanti of being economical with the truth regarding the social and ecological impact of its activities.

While the prices of gold dips from near record levels on world market, new Action Aid research highlights that poor people in Obuasi in Ghana are suffering huge social and environmental cost and alleged human rights abuses as a result of gold mining by a subsidiary of UK-listed mining giant, Anglo American.

Investigations highlight how rivers and streams have been polluted with arsenic, iron, manganese and heavy metals from past gold mining activities by Anglo America's subsidiary, AngloGold Ashanti and its predecessor, Ashanti Goldfields Corporation (AGC).

Previously used by thousands of villagers for drinking water, fishing and irrigation, dozens of rivers are now unusable.”All the fish are dead”, said local resident Dwawe Hapah, pointing out toxic sludge floating down the stream that flows through his village and was once once its main source of drinking water.

Local residents claim according to the report that new cases of serious water pollution are still occurring and that alternate sources of water provided by AGA, such as public standpipes are dangerously contaminated, broken or obsolete.

Large areas of land in Obuasi previously used for the cultivation of crops are believed to have been contaminated through toxic water pollution. Many smallholder farmers say their livelihoods have been destroyed.


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