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Azumah fights for Ghana

evelopment of Azumah Resources Ltd’s 11 years, generating a post-tax NPV of was the opportunity it could provide the re-
DBlack Volta gold project is expected to $US370 million, IRR of 44% and annual gion.
generate more than $1 billion of revenue for EBITDA of $US122 million. Capex is esti- “This is the most impoverished region in
the people of Ghana. mated at $US197 million, with operating Ghana, the one that can benefit most from
Azumah – now 100% owned by US- costs of $US905/oz. investment, where we can bring not only a
based international private investment fund “We’re super excited for this project,” mine to the district, but skills and employment
Ibaera Capital – has invested more than Azumah director and Ibaera managing and really contribute materially to the devel-
$US100 million into the project and en- partner James Wallbank told Africa Down opment of that region in Ghana,” he said.
gaged in excess of 1,500 locals over more Under. “We have the benefit of more than 50%
than a decade. A further 1,000 people are “You look at these economics and they of our energy being sourced through renew-
expected to be employed during construc- are the peer of almost any projects in the able sources already, and we’re looking to
tion, with a workforce of 420 required for the marketplace at the moment. improve on that situation.”
operational phase. “The project is fully permitted, feasibility Wallbank said the group was also attract-
A feasibility study on Black Volta has is complete and it’s ready for construction ed to the region because of its untapped geo-
forecast production of 148,000 ozpa for right now.” logical endowment.
Wallbank said Ibaera – which acquired “It doesn’t take a genius to figure out that
Azumah in 2020 – was agonisingly close this is clearly a very prospective location for
to finalising construction funding for Black gold mine development in Ghana,” he said.
Volta, which boasts 2.8 moz in resource “Just across the border [in Burkina Faso],
and 1.4 moz in reserve over a 934sq km we have three major mining projects – Yar-
licenced position. amoko, Mana and Hounde – which when
Azumah has completed almost 19km you look at them, in terms of scale and grade,
of drilling across the Black Volta footprint are almost identical to what we’re looking to
over the past three years, primarily over the develop here. And that’s not really surprising
Bepkong and Kunche open pits which will when we’re actually sharing the same rocks,
be the dominant mining areas in the early the same greenstone belts as those assets.”
years of production.
Wallbank said one of the main reasons – Michael Washbourne
James Wallbank Ibaera was attracted to north-west Ghana

Namdini nears starting line

onstruction of the 5.1 moz Namdini sites which include churches, hospitals
Cgold project is expected to start early schools and playing fields.
next year. Zhang said it was also the first time ei-
Now owned by Shandong Gold Group ther community had access to electricity
Co Ltd following its dramatic takeover of within their respective villages.
Australia’s Cardinal Resources two years “One of the villagers asked us if we would
ago, Namdini is poised to be the first major have electricity for charging cell phones,”
operating gold mine in northern Ghana. he said. “We said, ‘yes, of course’ and he
FEED work was set to begin last month said, ‘wow, that’s great, now I don’t need to
with manufacturing and installation of the travel 15km away every day to charge my
SAG mill and ball mill for the proposed 9.5 cell phone.”
mtpa processing plant now on the “critical A new multi-user 25km long road con-
path”, Cardinal Namdini Ltd investment di- necting the project to the highway was also
rector Sean Zhang told delegates at Africa nearing completion at the time of print.
Down Under. “This is not a private road, this is a pub-
Zhang said the size of the operation Sean Zhang lic road. After the road has been built, all
could not be understated. the villagers and the residents can use
“We have a mine life of 15 years and for of Shandong – has already implemented this road to easily travel in and out,” Zhang
this first three years, we’re going to pro- a number of key precursor projects ahead said.
duce 1.1 moz,” he said. of main construction beginning, including “Of course, we’re going to put some
“It’s a relatively low strip ratio, only 0.9, a $10 million resettlement action plan. safety measures to make sure nobody is
so it’s pretty easy mining but a little difficult The company facilitated the relocation endangered by our large trucks – fleets,
leaching the minerals, so that’s why we of 236 households, including some 1,400 etc – because this road is something
need to invest heavily for the initial stage. people, from two local communities near which also provides convenience to the lo-
“We’ll be pumping capital of at least the Namdini project area in northern Gha- cal community as well.”
$480 million in the next two years. We are na to new villages. – Michael Washbourne
going to build up the project and be chang- Ghana Minister of Lands and Natural
ing people’s lives over there.” Resources Hon Samuel A. Jinapor was on
Cardinal Namdini – a listed subsidiary hand recently to open the new community

aUSTRaLIa’S PaYDIRT OCTOBeR 2022 Page 57