NEWS - Abzu Releases Maiden NI 43-101 Resource Estimate
Abzu releases Nangodi NI 43-101 resource estimate
2014-02-21 13:28 ET - News Release
Mr. Bob Baxter reports
ABZU ANNOUNCES MAIDEN NI 43-101 TECHNICAL REPORT AND MINERAL RESOURCE ESTIMATE ON THE NANGODI GOLD PROJECT
Abzu Gold Ltd. has completed its maiden National Instrument 43-101 technical report and mineral resource estimate on the Nangodi gold project located in the Upper East region of northern Ghana.
Bob Baxter, chief executive officer of Abzu, commented: "We are very pleased to announce our maiden resource estimate on our Nangodi gold project in Ghana. The mineralization is open along strike and at depth. There are a number of other gold targets on the Nangodi concession and the adjacent Yameriga concession. Abzu believes its land and resources hold significant strategic value."
Nangodi NI 43-101 technical report and mineral resource estimate highlights:
An NI 43-101-compliant technical report and mineral resource estimate has been independently prepared by Mark J. Pryor, BSc (honours), FGS, FSEG, PrSciNat, and T. Carew, PGeo, Reserva International.
The report is dated Feb. 20, 2014, and is entitled "The Nangodi Gold Project located in the Upper East Region of Northern Ghana 42 degrees 40W, 10 degrees 48N."
A cut-off date of August, 2013, was used for the database giving a total of 116 drill holes (37 (AfricWest) and 79 (Abzu)), and 14 trenches.
Reserva completed a mineral resource estimate for the Nangodi project with an assay cut-off of 0.50 gram per tonne gold. The modelling and resource estimate were undertaken using Geovia Gems version 6.3 with a 12.0 g/t Au capping level, two-metre composites and ordinary kriging to estimate block grades.
The resource has not been constrained within an optimized pit shell.
The measured and indicated resource estimate totals 4.13 million tonnes at 0.96 g/t Au.
The inferred resource estimate totals 3.16 million tonnes at 0.88 g/t Au.
SUMMARY OF MINERAL RESOURCES NANGODI GOLD PROJECT
Oxide Transition Unoxidized Total
Tons Au Tons Au Tons Au Tons Au Au (oz)
Class (000) (g/t) (000) (g/t) (000) (g/t) (000) (g/t) contained
Measured 70 1.44 20 0.98 130 1.51 220 1.44 10,200
Indicated 710 0.97 250 0.83 2,950 0.93 3910 0.93 117,000
Total M+I 780 1.02 270 0.87 3,080 0.95 4,130 0.96 127,200
Inferred 120 0.87 70 0.67 2970 0.89 3160 0.88 89,400
(1) The nominal cut-off grade of 0.5 g/t is based on a long-term gold price
of $1,400 (U.S.) per troy ounce, and a processing cost and recovery of
$20 (U.S.) per tonne and 90 per cent, respectively, based on more recent
metallurgical testwork.
Reccomendations contained within the NI 43-101 technical report and mineral resource estimate include that exploration continues at the Nangodi project with a phased approach based on the following:
Further metallurgical testwork to include a possible bulk sample and/or large-diameter whole core in order to establish comminution parameters and eventual plant design;
Infill drilling to allow inferred resources to be classified into the M+I resource category;
Scoping study to examine the project economics;
Strong corporate social responsibility liaison to ensure that there is agreement with the continuing exploration and potential future mining.
A total budget of $2.6-million (U.S.) is proposed in order to meet the recommendations proposed in the Nangodi NI 43-101 technical report and mineral resource estimate, in particular, to complete a scoping-study stage to allow the economics of the project to be verified. In addition the metallurgical including comminution testwork will assist in confirming the process route and recoveries, as well as ascertaining the grain size distribution of the gold and clarifying the issues with the nugget effect.
Nangodi discovery potential
The Nangodi concession is 76.7 square kilometres in size, and although the majority of drilling has been focused on the Nangodi prospect, significant upside remains to be tested along strike and at depth. A number of targets has been identified in the Nangodi and Yameriga concessions that have additional exploration potential.
Abzu follows an industry-standard quality assurance/quality control (QA/QC) program, which consists of regular submission of blanks, duplicates and standards for its soil, rock chip and drill chip/core sampling, and meets industry-standard practices.
Qualified person
Bob Baxter, FAusIMM, Abzu's president and chief executive officer, and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for this news release. Mr. Baxter is not independent of the company as he is an officer and a director of the company.
We seek Safe Harbor.