By Dan Stratful (AFA)
Azimuth Resources (ASX: AZH) is a junior gold and uranium explorer with a focus on gold and uranium exploration projects in Guyana, South America. Its Guyana exploration projects cover over 8,000km2 of granted licences (East and West Omai Projects) which are prospective for gold and 4,000km2 (Amakura Project) which is prospective for uranium.
AZH's strategy is to develop a world class portfolio of assets by upgrading existing resources, undertaking green fields exploration and through project acquisitions. A $6 million equity capital raising has just been completed to fund growth through the issue of 17 million shares to sophisticated and institutional investors. The offer was oversubscribed.
AZH recently reported its maiden resource estimate for its West Omai gold project, which although it came in at the lower end of Analyst expectations, provided AZH with the foundations to build a large resource of high quality gold deposits.
The resource was derived from the Smarts and Hicks deposits at the flagship West Omai gold project, with the Smarts resource providing some particularly high quality results while the Hicks resource was of lower quality.
AZH operates in a country that has a mining friendly government and AZH owns almost 100% of the West Omai Project which holds the largest ground position in Guyana. The area reportedly has good logistics with existing road access and the ground is reportedly highly prospective.
Analysts' value AZH's shares at around 80c per share and with on-going drilling, AZH anticipates its resource inventory to grow as it seeks to become a multi-million ounce gold explorer.
Another resource upgrade is expected by the end of 2012.
Status: SPECULATIVE BUY
AZH's shares today traded at 39c
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