Azumah Resources Limited (ASX:AZM) has been granted a trading halt by the ASX pending an announcement regarding an ore reserve and feasibility study progress update.
The halt will remain in place until the earlier of an announcement being released to market or start of trading on Thursday, January 31.
Azumah is developing a portfolio of gold exploration assets in Ghana, this year announcing a total JORC resource of 2.496 million ounces across its Wa Gold Project’s 12 deposits.
Recent drilling has extended Wa’s Kunche deposit at depth, intersecting 5 metres at 6.02 g/t gold from 214 metres and 1 metre at 140.49 g/t from 208 metres.
Bepkong, one of the Wa project’s three main deposits along with Kunche and Julie, is now being drill tested for depth extensions.
The Kunche deposit hosts 846,500 ounces of JORC resources and is consistently mineralised over its 1.5-kilometre north-south strike.
Drilling is transforming the Kunche-Bepkong mining camp into a potential open pit mining operation that could fully underpin the entire proposed Wa project.
Subject to further drilling and evaluation, the possibility of underground mining at one or more of these pits is also emerging.
The scope of the current feasibility study is based on the mining of a series of relatively shallow open puts.
If underground mining was proven to be viable at any of these, it would add considerable value to the overall project.
The company has progressively grown the resource by exploring its 2,400-square-kilometre licence holdings over large areas of prospective Birimian terrain, the rocks that host most of West Africa’s gold mines.
Along with a revised feasibility study and financial metrics, Azumah plans to continue drilling and growing the Wa resource and is fully funded to a development decision in the September quarter of 2019.