Abzu Gold Ltd.

TSX VENTURE : ABS


Abzu Gold Ltd.

February 21, 2014 13:21 ET

Abzu Announces Maiden NI 43-101 Technical Report and Mineral Resource Estimate on the Nangodi Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 21, 2014) - Abzu Gold Ltd. ("Abzu" or the "Company") (TSX VENTURE:ABS) is pleased to announce the completion of its maiden National Instrument (NI) 43-101 Technical Report and Mineral Resource Estimate on the Nangodi Gold Project located in the Upper East Region of Northern Ghana.

Bob Baxter, CEO of Abzu, commented: "We are very pleased to announce our maiden resource estimate on our Nangodi Gold Project in Ghana. The mineralisation 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 B.Sc (Hons.), FGS,FSEG,Pr.Sci.Nat., and T. Carew. P.Geo, Reserva International.
  • The report is dated February 20, 2014 and is entitled "The Nangodi Gold Project located in the Upper East Region of Northern Ghana 42°40'W, 10°48'N."
  • 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 0.50g/t Au. The modelling and resource estimate was undertaken using Geovia GEMS V6.3 with a 12.0g/t Au capping level, two (2) metre composites and Ordinary Kriging to estimate block grades.
  • The resource has not been constrained within an optimised pit shell.
  • The Measured and Indicated resource estimate totals 4.13Mtonnes @ 0.96g/t Au.
  • The Inferred resource estimate totals 3.16 Mtonnes @ 0.88 g/t Au.
Summary of Mineral Resources
Nangodi Gold Project
Class Oxide Transition Un-oxidized Total
Tons
(x1000)
AU
(g/t)
Tons
(x1000)
AU
(g/t)
Tons
(x1000)
AU
(g/t)
Tons
(x1000)
AU
(g/t)
AU (Oz)
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
* The nominal cut-off grade of 0.5 g/t is based on a long term gold price of US$1,400/Troy Ounce, and a processing cost and recovery of US$20/t and 90% respectively, based on more recent metallurgical test work

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 CSR liaison to ensure that there is agreement with the on-going exploration and potential future mining

A total budget of US$2.6M 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 km2 in size and although the majority of drilling has been focussed on the Nangodi prospect significant upside remains to be tested along strike and at depth. A number of targets have been identified in the Nangodi and Yameriga concessions that have additional exploration potential.

Abzu follows an industry standard quality assurance/quality control (QA/QC) programme, 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.

On behalf of the board of directors of ABZU GOLD LTD.

Bob Baxter, President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward looking information" within the meaning of the British Columbia Securities Act and the Alberta Securities Act. Generally, the words "expect", "intend", "estimate", "will" and similar expressions identify forward-looking information. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward looking information. Statements in this press release regarding Abzu's business or proposed business, which are not historical facts, are forward-looking information that involve risks and uncertainties, such as estimates and statements that describe Abzu's future plans, objectives or goals, including words to the effect that Abzu or management expects a stated condition or result to occur. Since forward-looking statements address events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties. The foregoing commentary is based on the beliefs, expectations and opinions of management on the date the statements are made. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

Contact Information

  • Abzu Gold Ltd.
    Bob Baxter
    CEO & President
    (604) 638-3288
    (604) 398-5387 (FAX)
    info@abzugold.com