Punching Above Its Weight

Transcription

1 Punching Above Its Weight Stephen Stone Managing Director Helmsec Global Capital New Dawn Resources Forum Hong Kong 25 th March 2010

2 Leveraged to Gold Price, Resource Upgrades Very modest ~A$45M market capitalisation Well funded d ~ $7.0M cash 1,100,000oz gold resource >50% JORC Indicated = Good continuity Low ~A$40 per resource oz gold Enterprise Value Re-rating opportunity Major position in multi-million oz potential, emerging gold province All resources from surface and open-ended Good infrastructure Low country risk Feasibility Study by end-2010 High level drilling activity High level news flow

3 One Objective. Develop the first commercial scale gold mining operation in the emerging north-west Ghana gold province

4 NW Ghana Emerging World-Class Gold Province Large, contiguous Birimian ground positions in Ghana are extremely hard to secure Azumah s 3,100km 2 licences encompass 150 strike km of Birimian age greenstone terrain Ampella s licences lie directly across boarder in Burkina Faso in same Birimian greenstone belt

5 1.1 Million Oz Open-Ended Resources JORC Code compliant independent d Mineral Resource estimations Over 50% in JORC Indicated category good continuity Cut-Offs used: Kunche 1.0g/t Au ; Bepkong 0.8g/t Au ; Julie 1.0g/t Au Depth of resource models is 80m to 120m and all resources remain open in all directions

6 Experienced Board and Management Michael Atkins - Non-Executive Chairman Corporate finance - Former Chairman of junior that has done it before in Africa Stephen Stone - Managing Director Mining and production geology. Corporate and company management. Lived and worked in Africa Non-Executive Geoff M Jones - Non Executive Director Project engineer. Designed, engineered, developed and operated gold mines in Africa and Ghana. Executive to board level. Alan Thompson p - Project j Studyy & Development p Manager g Metallurgical Engineer - Operations incl. GM at Damang (Goldfields). Study management (Lyco, GRD Minproc) incl. Adamus (S. Ashanti), Moto (Moto), AngloAshanti (Tropicana) and BHPB (Olym Dam) Dr Roy Elliot - Site based front line exploration consultant Paul Amoako-Atta - Accra based. Geology, licencing, community and government liaison Hector Nyinaku - Accra based. Ghana Administration and logistics

7 Evolving Capital Structure Issued Fully Paid Shares (ASX: AZM) M (undiluted) Options (unlisted) 9.00M Market Capitalisation ~A$45M Macquarie 15% Top 20 51% Increasing European investor interest 20% Increasing institutional interest Increasing liquidity

8 Wa Gold Project Fly Through

9 Excellent Logistics and Infrastructure Sparsely populated. No villages to move Few illegal miners Well maintained site roads Sealed airstrip Mobile / satellite coverage Grid power Water Ground and Black Volta River Azumah field office Julie Exploration Camp Black Volta River Flat To Rolling Savannah Landscape

10 Fast Track Development Strategy Planets aligned: gold price; investor support; banking and finance Initial focus: near-surface, higher-margin mineralisation Commence at 1.0Mtpa, ~70,000oz multi-pit operation. Increase to +100,000oz Alan Thompson Study and Development Manager Competitive tender environment

11 Key Study Appointments: Process Engineering: Mining Engineering: Resource Modelling: Metallurgical Test Work: Environmental & Social: Lycopodium Minerals Mining Solutions Consultancy CSA Global AMDEL SAL Consult (Ghana)

12 Multi Pit Operation. Mining to initially alternate between Kunche and Bepkong - 2km away Maximise early cash flow from high-grade, near-surface oxide zone material grading up to 3g/t 5g/t Au..

13 Easy To Extract Gold. Favourable non-refractory mineralisation Conventional gravity / CIL ~95% recovery - oxide ~90% recovery - primary (sulphide) High % gravity component

14 Robust Returns at US$1,100 / oz. Kunche and Bepkong only (excludes Julie) 9 US$179M US$179M* (A$218M) cash surplus 9 373,000oz recovered g/t gold head grade 9 ~ 5.5yr mine life 9 ~US$60M cap cost** Another Kunche or Bepkong type discovery would provide the critical mass resources to underpin p a development decision *Undiscounted. Includes 3% gov royalty. Excludes project development p, financing g costs and tax outflows)) capital, **Capital cost based on preliminary indicative discussions with engineering groups.

15 Systematic Approach Very Effective Power auger RAB / Aircore Mapping and sampling RC

16 Tremendous Resource Growth Potential Only 10% of 150km prospective Birimian strike investigated Blind discoveries open up Kunche - Bepkong camp Kunche Western Corridor - new target Growing pipeline of drill-ready Growing pipeline of drill ready targets

17 Excellent Julie Results. Recent drilling: 17m at 4.38g/t gold from surface (AJRC065) ~ incl. 7m@ 9.76g/t gold from 4m; 7m at 5.72g/t gold from 59m (AJRC070); 7m at 4.76g/t gold from 29m (AJRC60); 4m at 8.96g/t gold from surface (AJRC61); and 6m at 5.25g/t gold from 28m (AJRC063 <6oz/t gold in surface rock chips on new veins

18 350,100oz Maiden Julie Resource 2.21g/t Au (1.0g/t Au cut-off) - Incl 3.57g/t Au (2.0g/t Au cut-off) 54% JORC Indicated Modelled from surface to 80m vertical depth Low angle, north dipping, east-west veins intersected in places by low angle, east dipping, north-south laminated veins Open in all directions within 6km east-west structure Kjersti, Josephine and other targets only minimally drilled Drilling testing for extensions and new veins completed results pending

19 Collette Resource Due End-May Last drilling campaign: 3m at 45.90g/t gold >1.5oz/t Recent drilling: 4m at 17.58g/t gold from 42m (ACORC066) ~ incl. 2m at 33.80g/t gold from 42m; 3m at 5.11g/t gold from 70m (ACORC059); 4m at 4.95g/t gold from 5m (ACORC042); and 10m at 3.19g/t gold from 51m (ACORC035) Open in all directions More quartz lodes recently discovered

20 Planning Next 40,000m Drilling Campaign. 19,000m RC Resource extension, infill and new target delineation completed 21,000m aircore New target testing and reconnaissance 70% completed 1,000m diamond d geotechnical and metallurgical studies - completed One of largest commitments by any junior gold explorer in West Africa RC and aircore rigs permanently on RC and aircore rigs permanently on site during 2010

21 High Level News Flow. End March: Julie maiden resource estimate End April: RC results from Kunche extensions, Bepkong extensions, and several established and new targets RC drilling of new Julie and Collette veins Aircore drilling of target pipeline Auger and rock chip results from reconnaissance campaigns June: ~July: General: Resource up-grades and Julie pit optimisation Results from new 40,000m campaigns Feasibility Study progress

22 EV ~A$40/oz: Punching Above Its Weight

23 Medamoase! ASX: AZM Contact: Stephen Stone Managing Director Mob: +61 (0) Suite 1, 2 Richardson Street West Perth, Western Australia, WA 6005 Tel:

24 Disclaimer and JORC Notice The information contained in this Presentation or subsequently provided to the Recipient of this Presentation whether orally or in writing by or on behalf of Azumah or their respective employees, agents or consultants ("Information") is provided to the Recipients on the terms and conditions set out in this notice. The purpose of this Presentation is to provide Recipients with Information relating to Azumah. The Presentation has been prepared by Azumah and each Recipient must make his/her own independent assessment and investigation of Azumah and its business and assets and should not rely on any statement or the adequacy and accuracy of any Information. Azumah makes no representation or warranty (express or implied) as to the accuracy, reliability or completeness of the Information. Azumah and its respective directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (express or implied) arising out of, contained in or derived from, or for any omissions from the Presentation, except liability under statue that cannot be excluded. The Presentation contains reference to certain intentions, expectations and plans of Azumah. These intentions, expectations and plans may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ. The performance and operations of Azumah may be influenced by a number of factors, many of which h are outside the control of Azumah. No representation ti or warranty, express or implied, is made by Azumah or any of its respective directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. This Presentation does not constitute in any way an offer or invitation to subscribe for securities in Azumah pursuant to the Corporations Act. The information in this presentation that relates to Mineral Resources at the Kunche Project is based on a resource estimate that has been audited by Mr Paul Payne, who is a full time employee of Runge Limited. Mr Payne is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Payne consents to the inclusion in the presentation of the matters based on information in the form and context in which it appears. The information in this report that relates to in-situ Mineral Resource estimates for Bepkong, Yagha and Atikpi is based on information compiled by Mr David Williams, an employee of CSA Global Pty Ltd, geological consultants. Mr Williams is the competent person for the Bepkong, Yagha and Atikpi estimates and takes overall responsibility for these. Mr Williams is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Williams consents to the inclusion in the report of the matters based on information in the form and context in which it appears. The information in this report that relates to in-situ Mineral Resource estimates for Julie is based on information compiled by Mr Steven Hodgson, an employee of CSA Global Pty Ltd, geological consultants. Mr Hodgson is the competent person for the Julie Resource.. Mr Hodgson is a Member of Australian Institute of Geoscientists (AIG) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hodgson consents to the inclusion in the report of the matters based on information in the form and context in which it appears. The information in this presentation that relates to Exploration Results is based on information that was compiled by Mr Bernard Aylward. Mr Aylward is the General Manager of Azumah Resources Limited. it Mr Aylward is a Member of The Australasian Institute t of Mining i and Metallurgy and has sufficient i experience which hihis relevant tto the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Aylward consents to the inclusion in this presentation of the matters based on information in the form and context in which it appears.