News

February 13, 2008

Azumah Rebuilds After A Horrid Start

By Our Man In Oz

Gold in the ground is not worth much to a company if the management team is fighting an internal war. The increasingly frustrated shareholders of Azumah Resources have discovered this simple fact of life, to their cost, over the past two years. While exploration at the company’s flagship Wa-Lawra project in Ghana has delivered a steady stream of excellent results the boardroom of the Australian-listed business has been dysfunctional, at best.

The result has been predictable. The wider market has ignored Azumah even though it’s proved up an initial resource of 516,000 ounces of gold in one zone at Wa-Lawra, and looks likely, following recent drill results, to deliver between one and two million ounces on part of the Birmian greenstone which has a reputation for hosting big gold deposits.

To put a hypothetical cost on Azumah’s troubles since it listed in early 2006, it’s worth considering what the gold in the ground at the...