Highlights: 44.5 m @ 1.99 g/t Gold (Including 33.5 m @ 2.39 g/t Gold)
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2011) - Abzu Gold Ltd. (TSX VENTURE:ABS)(OTCQX:ABZUF) ("Abzu") is pleased to announce the latest results from all or parts of twelve (12) drill holes at its Nangodi Property in Ghana where a twenty seven (27) hole initial drill program has recently been completed. Results confirm the presence of a significant gold bearing shear system hosting multiple zones of gold mineralization over a strike distance of at least 1,200 metres. Intercept highlights include 44.5 metres @ 1.99 g/t gold (45 metres to 89.5 meters hole NGDD_003) and 69.5 metres @ 0.41 g/t gold (70.5 metres to 140 metres, hole NGRD_005). Results confirm the continuity of the gold mineralization between historic drill holes and expand on the initial promising results reported by Abzu (see NR_11_13; November 10, 2011) from Nangodi. Abzu awaits additional results from remaining drill holes.
Abzu's President, Dr. Paul Klipfel, stated, "With gold mineralized intercepts now spanning over 1,200 metres, and the system remaining open in all directions, the scale of the Nangodi gold system is becoming clear as is the scale of the opportunity for Abzu. We are already developing plans for an aggressive phase 2 drill program while we await additional encouragement from the balance of the outstanding holes at Nangodi."
With these new results Abzu has extended the Nangodi gold system for up to 630 metres northeast of the historic shaft (NGRD_011, 16 metres @ 1.61 g/t gold) and 400 metres to the southeast (NGRD_19 pre-collar, 7 metres @ 0.74 g/t gold). Surface outcrop and galamsey workings indicate that gold mineralization within this major shear system may extend for over 4,000 metres providing Abzu with the potential to significantly expand on the resource potential at Nangodi.
The Nangodi Main gold system centers on a historic gold mine and is only 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. and the first to be drill tested by Abzu.
Mineralization at Nangodi Main consists of gold in quartz-carbonate ± arsenopyrite ± tourmaline stockwork and veins associated with numerous 3 - 10 metre wide carbonaceous shear zones within and adjacent to quartz porphyry rock. These mineralized shears are part of an extensive regional shear zone with strike length in excess of 100 kilometres (Figure 2). Gold-bearing intercepts are accompanied by carbonate, sericite, and chlorite alteration. 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.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/abs-1201-fig-1.pdf.
|Highlights of Drill Holes|
(portion of hole currently available)
RC only to 50m
RC only to 50m
RC only to 51
RC only to 50m
|NGRD_017 partial results only|
RC only to 46m
|*||Insufficient drilling has been completed to estimate true thickness at this zone.|
|**||Italics in light blue and light yellow highlight indicates previously reported results.|
|***||Hole NGRD_018 ended in mineralization.|
The Nangodi Main and other targets within the Nangodi and Yameriga concessions 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 (Figure 2).
To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/abs-1201-fig-2.pdf .
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.
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.
About Abzu Gold Ltd. - www.abzugold.com
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.
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.