Abzu Gold Ltd.

Abzu Gold Ltd.

April 19, 2011 09:00 ET

Abzu Gold Acquires Rights to Golden Reef Concession in Ashanti Region and Commences Work Programs on the Asankrangwa Gold Belt

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 19, 2011) - Abzu Gold Ltd. (TSX VENTURE:ABS)(OTCQX:ABZUF) ("Abzu") is pleased to announce it has completed the option agreement for the Golden Reef gold concession on the Asankrangwa Gold Belt in the prolific Ashanti Region of Ghana. The Golden Reef concession covers approximately 45 km2 and surrounds Abzu's Mpatasie concession on three sides (Map 1).

To view map one, please click the following link: http://media3.marketwire.com/docs/absMAP1.pdf.

"Abzu has optioned this strategic property in order to fully explore the southwestern extension of surface gold anomalies identified on its Mpatasie property, where extensive, coherent soil anomalies are thought to overlie deep-seated, controlling cross structures," Dr. Paul Klipfel, President of Abzu stated. "We are very excited to be able to have obtained the right to explore this property, as it significantly enhances Abzu's land position along this key trend in the Asankrangwa Gold Belt. Furthermore, it allows the company access to a greater strike extent of possible mineralization."

On October 22, 2010, Abzu Resources acquired an option from Golden Reef Mining Ltd. to earn an 80% interest in this concession, with the Government of Ghana holding a 10% interest in accordance with mining legislation in Ghana. In order to exercise the option and earn its 80% interest, Abzu must spend US$500,000 in exploration over a period of four years or until production commences. As of January 31, 2011, total payment of US$100,000 was made as follows:

  • US$100,000 upon signature of the agreement on October 22, 2010 (paid);
  • US$100,000 on or before October 22, 2011;
  • US$100,000 on or before October 22, 2012;
  • US$100,000 on or before October 22, 2013; and
  • US$100,000 on or before October 22, 2014.

Abzu has both an extensive and strategic land position in the Asankrangwa Belt, a structural zone 8-10 km wide in the center of the Kumasi Basin with numerous shears that host gold vein systems. Past production from these vein systems is in the order of 1Moz Au. Recently, Keegan Resources Inc. has announced a resource approximately 8 km northwest along strike from Abzu's U and N concessions. PMI Gold Corp. is developing resources at its Obotan project which lies approximately 8 km southwest of the Mpatasie-Golden Reef concessions. Abzu plans to implement surface work on this property in the coming months.

Work Program

Abzu has embarked on an aggressive strategy to explore the Mpatasie and Golden Reef properties through a combination of soil and trench surface sampling and an aerial VTEM geophysical survey (completed). A soil sampling program (approximately 1,400 samples) is currently in progress to outline the extent of the current anomalous gold zone that extends from the Mptasie concession onto the Golden Reef concession. Surface gold anomalies coincident with structural features identified by VTEM will be targeted for drilling later this year.

To view map two, please click the following link: http://media3.marketwire.com/docs/absMAP2.pdf.

Abzu plans further surface programs for its other concession in the Asankrangwa, Ashanti and Kibi Belts.

About Abzu

Abzu is a gold exploration and development company working in Ghana, Africa's 2nd largest gold producer and host to some of the world's largest gold deposits. Ghana has strong land title laws and is one of the world's most mining-friendly jurisdictions. Abzu has invested several years developing local and national relationships, key to its strategic land position on over 360 square kilometres of highly sought after and productive gold belts.

Qualified Person and Quality Control/Quality Assurance

Professional geologist (AIPG cert. # 10821) Dr. Paul Klipfel, President and a Qualified Person as defined by National Instrument 43-101, has designed, planned, and supervised the work program at Mpatasie, Golden Reef, and Asafo and is responsible for all aspects of the work, including the quality control/quality assurance program. Samples are collected systematically and in a consistent manner. Sample bags are closed and sealed at the sample site and kept secure in the care of field crews until delivered to the ALS laboratory in Kumasi, Ghana for gold fire assay and ICP multi-element analyses. ALS Chemex's quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025:1999. Analytical accuracy and precision are monitored by inclusion of field duplicates (1:50) and reference standards (1:20) into the sample stream. Dr. Klipfel is not independent of the Company as he is an officer and shareholder.

Mr. Georgi Magaranov, a consulting economic geologist employed by ET Geoart, is a Qualified Person as defined by National Instrument 43-101, has also been responsible for design and supervision onsite of the work program, including the QAQC program. Mr. Magaranov has over 17 years of exploration experience working for AngloAmerican plc, Rio Tinto Exploration, and other companies in a range of geographic locations in Africa, Asia, Europe, and South America for gold, copper and other types of mineral deposits Mr. Magaranov is independent of the Company.

Dr. Klipfel has a PhD in economic geology and more than 32 years of relevant experience as a mineral exploration geologist. He is a Certified Professional Geologist [CPG 10821] by the American Institute of Professional Geologists.

On behalf of the board of directors of Abzu Gold Ltd.

Allan Serwa, Chief Executive Officer

This news release contains certain forward-looking statements, and such statements involve risks and uncertainties. The results or events predicted may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results, or any other occurrence.

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.

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