Name of the Project
Bepkong underground gold project.

Location
Ghana.

Project Owner/s
Azumah Resources and joint venture partner Ibaera Capital.

Project Description
A scoping study on the Bepkong project has indicated that an underground mining operation could provide a material boost to Azumah’s already financially robust openpit-based Wa gold project.

The study proposes a production target of an additional 154 000 oz of contained gold.

Mineralisation is proposed to be accessed by a portal and ramp, starting 40 m above the base of the currently planned Bepkong openpit and will continue to a depth of 450 m below surface.

Conventional open stoping is the preferred mining method, with ore and waste being trucked to surface.

The preliminary mining schedule will be for an estimated initial 4.5 years at an average mill feed grade of 3.21 g/t gold.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project is expected to have a pretax net present value, at a 5% discount rate, of $177-million and an internal rate of return of 35%, with a payback of 1.6 years.

Capital Expenditure
Provisional capital costs will comprise about $36-million for development and diamond drilling, $78-million for underground mining costs and $29-million for processing costs.

Planned Start/End Date
Systematic development and mining operations could start towards the end of the openpit development at Bepkong, which is currently scheduled for Year 2 in the feasibility study schedule.

Latest Developments
The JV has not made a production decision and its strategic plan to develop a gold mining operation is subject to the results of a feasibility study on the Wa gold project and other factors.

Key Contracts and Suppliers
Orelogy Mine Consulting (scoping study).

On Budget and on Time?
Too early to state.

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