In its most recent resource update, Azumah Resources (ASX:AZM) has increased the total amount of gold in its reserve estimate by 45% to just over 600,000 ounces of gold at an excellent grade of 2.14g/t. This should be sufficient for a 7.5 year mine life based on an expected throughput rate of 1.2 million tonnes per year, which should result in an average annual production of 75,000 ounces of gold per year during these initial 7 years, taking a 92% recovery rate into account.
Azumah has made great progress on the property and its Wa Gold project is improving month by month, as the company has already secured the mining licenses and has access to the power grid. We are now awaiting the outcome of a definitive feasibility study using a 1.2Mtpa scenario and to see the environmental permits for the project which now contains 2M ounces of gold at an average grade of 1.51g/t.
Disclosure: The author holds no position in Azumah Resources. Please see our disclaimer for current positions.