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Azimuth Resources Limited – Corporate and Exploration Update

July 2, 2012

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES./

PERTH, AUSTRALIA, July 3, 2012 /CNW/ – Azimuth Resources Limited (ASX
and TSX: AZH) (the “Company” or “Azimuth“) is pleased to provide an update on corporate and exploration
activity. 

Highlights

        --  Strategy in place to substantially grow resource inventory
            beyond maiden 1.22Moz at 3.1g/t Au.
        --  Significant results received from Smarts deposit (outside of
            the resource envelope) include
      o 18m @ 6.8 g/t Au  (depth extension)
      o 5m @ 5.9 g/t Au  (depth extension)
      o 5m @ 7.6 g/t Au (NW strike extension)
      o 1m @ 31.9 g/t Au  (NW strike extension)
      o 6m @ 5.0 g/t Au (NW strike extension)
      o 1m @ 24.9 g/t Au  (NW strike extension)
        --  Management changes see continued development of management
            team.

 “Richard Monti”

Richard Monti
Executive Director

Exploration Strategy and Significant Results
Azimuth announced its maiden inferred mineral resource of 12.4Mt at
3.1g/t Au for 1.22Moz contained ounces of gold at the end of May. The
Company has since developed an exploration strategy designed to grow
its resource inventory over the next 6 to 12 months. The Company has
reduced its fleet of drill rigs to 3 (1 core, 1 RC and 1 air core) now
that the resource drill out is complete and in order to reduce its
expenditure in recognition of the current tight equity markets. The
Company currently has sufficient cash at hand to fund this strategy
over the next 6 months.

The Company intends to utilize the rig fleet as detailed below:

        --  Core rig to drill extensions along strike and at depth of the
            Smarts deposit.
        --  RC rig to test targets defined by artisanal miners and
            geophysical targets along the strike extensions (Goldstar,
            Kaburi, El Paso, Powers, Killicow, Eldorado).
        --  Air core rig to generate targets under sand cover using
            interpretation of its recently acquired air magnetic survey as
            the primary targeting tool together with standard ground
            truthing techniques.

The Company’s strategy is to spend the next 6 to 12 months on resource
growth and target generation to fuel that growth with the goal of
substantially increasing its resource inventory. In parallel the
Company will continue work on long lead feasibility work such as
metallurgical studies to advance process flow sheet development and
base line environmental studies.

The Company believes that this small reduction in drilling capacity will
facilitate an environment of increased focus and efficient development
of targets as well as expansion of the resource inventory, in doing so
managing the company’s cash stocks effectively.

Map showing West Omai regional target drilling and Smarts and Hicks
resource drill hole locations.

The Company has recently received the following drilling results:

Smarts extensions below the current resource envelope. Note, all depths
quoted below are down hole depths:


    SDD009:    18m @ 6.8 g/t Au (from 186m)

    SDT505:    5m @ 5.9 g/t Au (from 284m);

               8m @ 1.3 g/t Au (from 300m)

    SDT478:    1m @ 11 g/t Au (from 254m)

Smarts intercepts in the north-western portion of Smarts (along strike
and sub parallel lodes) that are currently outside of the resource
envelopes


    SDT271:    5m @ 7.6 g/t Au (from 183m)

    SDT218:    1m @ 31.9 g/t Au (from 134m)

    SDT443:    3m @ 4.7 g/t Au (from 133m)

    SDT579:    1m @ 24.9 g/t Au (from 62m)

    SDT591:    4m @ 4.2 g/t Au (from 127m)

    SDT593:    6m @ 5.0 g/t Au (from 234m)

Drilling is continuing at Smarts in two main areas – the depth
extensions to the high grade orebody and the second is the extensions
along strike to the northwest. There appear to be 3 zones of
mineralization in the Northwest area of the deposit and all three have
the potential to add significant ounces to the resource inventory.

First pass RC drilling has been completed at Eldorado (7 holes for 676
metres) and Goldstar (11 holes for 1676 metres). RC drilling has
commenced at Powers prospect and south east of the Kaburi prospect
along strike from previous drill intercepts of up to 9m @ 9.2 g/t Au.

Eldorado is located 3km east of the Smarts deposit and historically has
been an area of intense alluvial mining activity. The recent 7 hole
program tested targets in and around the alluvial pit area where
several old shafts also exist. Assay results have been returned for 5
of the Eldorado drillholes; the best intercept to date being ERC004 (1m
@ 8.8 g/t Au – from 29m) which drills below one of the historical
shafts. Several low grade intervals were also noted in ERC005 and
ERC007 but do not exceed 0.5 g/t Au. The prospect will be re-evaluated
once the remaining assay batches have been received.

The Goldstar prospect is located within the Aurora-Gem Creek Corridor,
approximately 6km northeast of the Smarts deposit. This large corridor
has extensive alluvial pits and workings within the Company’s tenure.
The Company has been conducting auger geochemical sampling along the
trend and has defined several zones of interest that are being followed
up. The first of these areas to be drilled has been Goldstar, with 11
RC holes completed earlier this month. Assay results have only been
received for the first 2 drill holes to date which returned anomalous
gold values, and confirms that the structures that pass through the
Goldstar pit area are indeed fertile.

The RC drilling programs southeast of Kaburi and at Powers are in
progress and no assay results are available at this stage. Drilling at
both prospects has intersected shear hosted quartz veins and sulphides
over a strike length of 200m at Kaburi and 500m at Powers.  Assays are
awaited.

A program of scout aircore drilling is in progress approximately 10km
west northwest of the Smarts deposit. Three lines of holes at 100-200m
spacing are being completed testing regional trends identified in the
aeromagnetics. The area is completely covered with 20 to 40 metres of
sand making aircore the most suitable cost effective technique to test
the basement and the cover interface. Assay results have been received
for approximately half of the first line and several holes have
intersected low level gold anomalism in the interface between cover and
basement. Such low level anomalism is present in the interface between
cover and basement at the Smarts prospect where values of 50-200ppb are
common up to 400 metres laterally away from the Smarts mineralisation. 
The Company believes such low level anomalism can provide a vector to
basement mineralisation and will plan follow up RC drilling once
further results are received.

Other target areas are currently being assessed with basic mapping,
prospecting and geochemical tools in conjunction with the recently
acquired airborne geophysics. Alluvial mining pits and shafts at El
Passo, Killicow and others are being investigated and drill programs
prepared.

Management Changes

The Company continues to build its exploration and development team in
country. The Company’s COO Paul Criddle is now based in country and the
team has been augmented over the last months with the appointment of an
in country Exploration Manager and in country Commercial Manager.

Dominic O’Sullivan, the Company’s founder and president has decided to
resign as an executive of the Company and will step down to a
non-executive director role. He will provide his services on a
consulting basis to assist the company with geological services and
strategic land acquisition. Dominic feels that having achieved the
major milestones of a maiden resource, establishing excellent tenure in
Guyana and developing the Company’s exploration strategy and handing
over the reins to the new management team he has achieved his goals as
founder of the Company. The Board and management of Azimuth wish to
thank Dominic for his executive efforts to date and look forward to a
continuing relationship with him to benefit the Company’s shareholders
with his extensive in country knowledge and experience.

Competent Person’s Statement
The information in this report that relates to exploration results is
based on information compiled by Mr. Richard Monti who is a member of
the Australasian Institute of Mining and Metallurgy. Mr. Monti is a
Director of Azimuth Resources Ltd.  Mr. Monti has sufficient experience
which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2004 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’ and a qualified person as defined in
National Instrument 43-101. Mr. Monti consents to the inclusion in this
report of the matters based on his information in the form and context
in which it appears.

The information in this report that relates to mineral resources or ore
reserves is based on information compiled by Mr. Aaron Green who is a
member of the Australian Institute of Geoscientists (MAIG). Mr. Green
is a full time employee of Runge (Australia) Limited.  Mr. Green has
sufficient experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004
Edition of the ‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’ and a qualified person as defined
in National Instrument 43-101. Mr. Green consents to the inclusion in
this report of the matters based on his information in the form and
context in which it appears.  For a description of the data
verification process, quality assurance and quality control measures,
the effective date of the mineral resource estimates contained herein,
details of the key assumptions, parameters and methods used to estimate
the mineral resources set out in this report and the extent to which
the estimate of mineral resources set out herein may be material
affected by any known environmental, permitting, legal, title,
taxation, socio-political, marketing or other relevant issues, readers
are directed to the technical report entitled “Technical Report, West
Omai Gold Project, Guyana” dated May 30, 2012.

Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information, including
statements regarding mineral resource estimates, the potential
mineralisation and geological merits of the Hicks and Smarts Deposits
and the plans, objectives or expectations of the Company with respect
to the advancement of these projects and completion of programs and
studies.  Any statements that express or involve predictions,
expectations, beliefs, plans, projections, objectives, assumptions or
future events or performance (often, but not always, using words or
phrases such as “expects”, “is expected”, “anticipates”, “plans”,
“projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”,
“objectives”, “potential” or variations thereof or stating that certain
actions, events or results “may”, “could”, “would”, “might” or “will”
be taken, occur or be achieved, or the negative of any of these terms
and similar expressions) are forward-looking statements.

Forward-looking statements are subject to a variety of known and unknown
risks, uncertainties and other factors that could cause actual events
or results to materially differ from those reflected in the
forward-looking statements, including, without limitation: inherent
uncertainties and risks associated with mineral exploration;
uncertainties related to the availability of future financing;
uncertainties related to the outcome of studies; uncertainties relating
to fluctuations in gold or uranium prices; the risk that Azimuth’s
title to its properties could be challenged; uncertainties related to
general economic and financial conditions; and uncertainties related to
fluctuations in Azimuth’s share price.  This list is not exhaustive of
the factors that may affect any of Azimuth’s forward-looking
statements. Forward-looking statements are statements about the future
and are inherently uncertain, and actual achievements of Azimuth or
other future events or conditions may differ materially from those
reflected in the forward-looking statements due to a variety of risks,
uncertainties and other factors, including, without limitation, those
referred to in the Company’s Annual Information Form under the heading
“Description of the Business – Risk Factors” and elsewhere.

Azimuth’s forward-looking statements are based on the assumptions,
beliefs, expectations and opinions of management as of the date hereof
and which Azimuth believes are reasonable in the circumstances, but no
assurance can be given that these expectations will prove to be
correct. These assumptions include, but are not limited to public
statements and stated goals, that there will be no material adverse
change affecting the Company or its properties and such other
assumptions as set out herein. Azimuth disclaims any intention or
obligation to update or revise forward-looking statements if
circumstances or management’s beliefs, expectations or opinions should
change, except as required by law.  For the reasons set forth above,
undue reliance should not be placed on forward-looking statements.

 

SOURCE Azimuth Resources

Image with caption: “Map showing West Omai regional target drilling and Smarts and Hicks resource drill hole locations. (CNW Group/Azimuth Resources)”. Image available at: http://photos.newswire.ca/images/download/20120702_C5695_PHOTO_EN_15876.jpg


Source: PR Newswire