Abzu Gold Announces New Ghanian Gold Discovery at Nangodi Property
10.11.2011 | Marketwire
Highlights Include:- 73 m @ 1.15 g/t Gold
- 44 m @ 1.91 g/t Gold
- 66 m @ 1.53 g/t Gold
VANCOUVER, 11/10/11 - Abzu Gold Ltd. (TSX VENTURE: ABS) (OTCQX: ABZUF) ('Abzu') is pleased to announce that initial drill results confirm the presence of and extend a broad gold mineralized system on the Company's Nangodi Project, Bole-Nangodi Gold Belt, in northern Ghana (Figure 1). Multiple higher-grade gold intercepts occur and define a high-grade gold zone varying from 1 to 15 metres wide with values ranging up to 41.6 g/t gold (1.3 oz/t).
Mineralization remains open in all directions including depth.
Intercepts include 73 metres @ 1.15 g/t gold (NGDD-1A) and 66 metres @ 1.53 g/t gold (NGRD-12) and outline gold mineralization over true widths of approximately 50 metres and to a vertical depth of 180 metres (Table 1). In addition, this drilling demonstrates the presence of a high-grade zone 1 to 15 m wide with values up to 41.6 g/t gold over 1 metre and 4.65 g/t gold over 15 metres in NGRD-012 at 106 to 107 metres and 100 to 115 metres depth, respectively.
Abzu has completed 27 Reverse Circulation (RC) and diamond core drill holes (Figure 2) totaling 4,039 metres in its phase 1 drill program. Results for the initial four holes on Section 49975 are shown in Figure 3. Additional results are pending and will be released upon receipt. The gold mineralized system remains open in all directions.
Table 1
Highlights of Drill Holes for Section 49975
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Hole From To Interval Grade
Number (m) (m) (m)(i) (g/t Au)
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NGDD_001
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0 20 20 0.46
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33 54.7 21.7 0.56
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75 119 44 1.91
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includes 104 119 15 4.75
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NGRD_001A
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5 15 10 0.37
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34 107 73 1.15
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includes 44 48 4 7.9
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96.3 107 10.7 3.06
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NGRD_002
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12 16 4 0.94
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48 51 3 1.24
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NGDD_004
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48.5 72.5 24 2.25
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includes 53.9 68.5 14.6 3.32
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77.5 100.5 23 0.32
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NGRD_012
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100 166 66 1.53
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includes 100 115 15 4.65
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105 108 3 17.93
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106 107 1 41.6
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119 131 12 1.0
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157 160 3 1.23
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(i) Insufficient drilling has been completed to estimate true thickness at this zone.
The Nangodi Project centers on a historic gold mine and results are from just one of several targets on the large, 142 km2, Nangodi concession (Figure 1). Nangodi is one of ten concessions currently under option agreement with Red Back Mining Ghana Ltd., a wholly owned subsidiary of Kinross Gold Corp. under the terms as indicated in Abzu press release 11-07 from June 29, 2011.
To view Figure 1 click on:
http://media3.marketwire.com/docs/abs1.jpg
Abzu's President, Dr. Paul Klipfel, stated, 'Not only do today's results confirm the impressive results from historic work at Nangodi, they also open the door for continued expansion of this sizeable gold mineralized system. In addition, the newly identified high-grade zone presents the Company with an exciting opportunity of finding more gold ounces in a smaller area.'
To view Figure 2 click on:
http://media3.marketwire.com/docs/abs2.jpg
To view Figure 3 click on:
http://media3.marketwire.com/docs/abs3.jpg
Mineralization at Nangodi Main consists of gold in stockwork and veins in a sheared quartz porphyry rock. Gold-bearing intercepts are associated with quartz-carbonate +/- arsenopyrite +/- tourmaline veins accompanied by carbonate, sericite, and chlorite alteration. Gold mineralization is associated with a 3 - 10 metre wide carbonaceous shear zone and adjacent quartz +/- feldspar porphyry intrusive. This style of mineralization is similar to other shear zone-hosted gold deposits throughout Ghana, particularly those along the western margin of the Ashanti Belt.
The Nangodi Main and other targets align along a major shear zone identified by past explorers. The Youga Mine just across the border in Burkina Faso, lies along this shear zone.
Red Back Option Agreement
Abzu Gold has the right to earn 51% of Red Back's holding in all 10 concessions, including Nangodi, by incurring exploration expenditure of a total of US$3,000,000 ($500,000 in year 1, $1,000,000 in year 2, and $1,500,000 in year 3). The Government of Ghana retains a 10% interest in all concessions as per mining legislation of Ghana. Once the US$3,000,000 option expenditures have been incurred, Abzu and Red Back will form a joint venture which Abzu will manage and to which both companies will contribute proportionately to their interest.
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 1,100 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 drilling and work program at Nangodi 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. All Nangodi samples from diamond drill core are sawed and half-core samples bagged, closed and sealed at the Company's core facility. RC samples are collected at the drill rig by a geologist who is a Qualified Person or is under the supervision of a Qualified Person. Samples are then transported to the Company's facility in Bolgatanga where they are split sufficiently for an approximate 2 kg sample. All samples are kept secure until delivered to the ALS laboratory in Kumasi, Ghana for gold fire assay.
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. In addition, ALS performs regular duplicate analyses according to their own protocols for Quality Assurance and Quality Control.
Dr. Klipfel has a PhD in economic geology and more than 33 years of relevant experience as a mineral exploration geologist. He is a Certified Professional Geologist (CPG 10821) by the American Institute of Professional Geologists. Dr. Klipfel is not independent of the Company as he is an officer and shareholder. Dr. Klipfel has supervised the drill program, examined the mineralized intercepts reported here-in, reviewed the QAQC data from the project and approved the content of this release.
Mr. Georgi Magaranov, a consulting economic geologist employed by ET Geoart, is a Qualified Person as defined by National Instrument 43-101, has been jointly responsible with Dr. Klipfel 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.
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.
Contacts:
Abzu Gold Ltd.
Quentin Mai, Manager, Corporate Communications
604-638-3288
qmai@abzugold.com
www.abzugold.com