VANCOUVER, BRITISH COLUMBIA–(Marketwire – Sept. 12, 2011) – Abzu Gold Ltd. (TSX VENTURE:ABS)(OTCQX:ABZUF) (“Abzu”) is pleased to announce commencement of drilling at its Nangodi concession, Bole-Nangodi Gold Belt, Ghana (Figure 1: http://media3.marketwire.com/docs/AbzuFigure1.pdf), one of 10 concessions currently under option agreement with Red Back Mining Ghana Ltd, a wholly owned subsidiary of Kinross Gold Corp. The drill program has been designed to evaluate historic gold mineralization at the Nangodi Main target, one of numerous gold targets on the Nangodi concession (Figure 2: http://media3.marketwire.com/docs/AbzuFigure2.pdf). Gold in stockwork and quartz veins at Nangodi Main was previously evaluated by Africwest drilling in the mid-1990s near a 1930’s vintage underground mine that produced gold at an average grade of ~26 g/t gold. Historical drill intercepts have intersected gold mineralization along a strike distance of 1.2 kilometres which is also the site of numerous artisanal mining sites where native gold is being recovered from crushed bedrock.
Approximately 3,000 metres of drilling are planned in the initial phase of work. Historic drilling has returned intercepts of up to 69 metres of 3.10 g/t gold with a true width of 60 metres (Figure 3: http://media3.marketwire.com/docs/AbzuFigure3.pdf). Please note that these data are historic in nature and have not been reviewed or verified by a Qualified Person (QP), nor has any QP evaluated Quality Assurance/Quality Control practices that might have been undertaken by Africwest at the time of drilling. Abzu wishes to drill at this location, in part, to assess the validity of these reported data.
Dr. Paul Klipfel, Abzu’s President said, “We are very excited to commence drilling the Nangodi target as it is an impressive gold-bearing vein and stockwork zone and provides a rare opportunity to follow up on unfinished positive results by others. Our current data indicates significant gold grades and continuity over large widths indicating potential for a very sizable system.”
Project Highlights
The Nangodi and Yameriga concessions offer the most advanced targets among a portfolio of 10 concessions, all with targets, currently under option agreement with Red Back Mining Ghana Ltd, a wholly owned subsidiary of Kinross Gold Corporation. Numerous targets ranging from soil anomalies to drill intercepts have been identified by past explorers on the Nangodi and Yameriga concessions.
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. Mineralization at Nangodi Main consists of gold in stockwork and veins in a sheared quartz porphyry rock. Mineralization is open in all directions. Abzu’s current program is designed to improve understanding of the extent of gold mineralization.
Red Back Option Agreement
Abzu Gold has the right to earn 51% of Red Back’s holding in these concessions 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.
Abzu currently has field operations in progress in four areas in Ghana – Golden Reef – Mpatasie, U and N, Asafo, and now Nangodi. The Company is currently waiting for assay results for its Phase 1 Golden Reef drill program completed in July, 2011.
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. Drill samples are bagged, 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 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.
Dr. Klipfel has a Ph.D. 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.
On behalf of the board of directors of ABZU GOLD LTD.
Allan Serwa, Chief Executive Officer
