Mr. Peter Breese reports
PROGRESSING NEAR-MINE SATELLITE TARGETS TOWARDS PRODUCTION IN 2017
Asanko Gold Inc. has provided an update on near-mine exploration activity focused on identifying additional oxide resources withing short trucking distance of the existing operations at the Asanko gold mine in Ghana, West Africa.
Highlights
- Currently evaluating three near-surface exploration targets within short
trucking distance of existing processing plant: Nkran extension,
Adubiaso extension and Akwasiso;
- Nkran extension resource estimate completed: measured and indicated
mineral resources of 758,658 tonnes at 1.76 grams per tonne for 42,930 contained ounces
of gold at 0.8 g/t cut-off;
- Adubiaso extension resource estimate previously announced: measured and
indicated mineral resources of 628,600 tonnes at 1.89 g/t for 38,250
contained ounces of gold at 0.8 g/t cut-off;
-
New larger target, Akwasiso, focus of current drilling with 4,200 metres
drilled to date and a mineral resource estimate expected in fourth quarter 2016;
- Supplementary environmental impact studies for Adubiaso extension
submitted to relevant government regulatory bodies, Nkran Extension
scheduled for submission by end of third quarter 2016; permits expected in time for
commencement of mining in early 2017.
Peter Breese, president and chief executive officer, commented: "The three current exploration targets offer immediate, low-cost, incremental ounces that will keep our hungry mill full for the next two years while we develop our phase 2A expansion project. These near-surface deposits are now being incorporated into our life-of-mine plan, with mining targeted to commence in early 2017.
"Akwasiso is an exciting new target which is in close proximity to the Nkran extension and is an important addition to our satellite deposit project pipeline. We are targeting an initial mineral resource estimate during the fourth quarter of 2016."
Nkran extension
The Nkran extension (annexure 1) is located on the Nkran shear structure, approximately 1.5 kilometres from the Nkran pit, and runs for 900 m north-south adjacent to the existing tailings storage facility (TSF). The zone of interest was originally indicated from sterilization drilling for the TSF in 2013.
During the first quarter of 2016 the zone was infilled by reverse circulation (RC) drilling on a heel-toe 40 m by 20 m grid. Following the completed assaying of the 29 RC drill holes (approximately 2,200 m), a classified mineral resource has been estimated. Given these additional resources are part of and not a material addition to the estimated Asanko gold mine resources, no separate technical report will be prepared for them.
NKRAN EXTENSION -- MEASURED AND INDICATED RESOURCES
Cut-off (g/t gold) Tonnage Grade (g/t) Gold ounces
0.5 1,001,515 1.49 47,967
0.6 913,008 1.58 46,414
0.7 830,438 1.67 44,691
0.8 758,658 1.76 42,960
1.0 631,098 1.94 39,294
NKRAN EXTENSION -- INFERRED RESOURCES
Cut-off (g/t gold) Tonnage Grade (g/t) Gold ounces
0.5 1,033,300 1.36 45,303
0.6 899,110 1.48 42,924
0.7 810,495 1.58 41,077
0.8 740,643 1.65 39,386
1.0 610,805 1.82 35,671
Notes
All figures are in metric tonnes and columns may not add up due to rounding.
A gold cut-off grade of 0.8 g/t has been used. The mineral resources are
stated as in situ tonnes. Individual densities were used per ore domain. The
tonnages and contents are stated as 100 per cent, which means no attributable
portions have been stated in the table conversion from grams to ounces --
31.10348.
Adubiaso pit extension (previously announced, see press release dated April 27, 2016)
The Adubiaso pit (annexure 1) is a previously mined satellite pit at the Asanko gold mine which is estimated to contain 1.8 million tonnes of proven and probable mineral reserves at 2.07 g/t gold (1). These mineral reserves lie predominantly under the old pit and form part of the current life-of-mine plan for the Asanko gold mine. In 2015, mineralization in two zones over a 300 m strike length extending to the northeast of the existing pit were identified based on an analysis of historical drill hole data.
In the first quarter of 2016, the company drilled 20 holes (approximately 2,100 m) of reverse circulation (RC) drilling and delineated a classified mineral resource, as per the associated tables. Given these additional resources are part of and not a material addition to the estimated Asanko gold mine resources, no separate technical report will be prepared for them.
Note
(1) Asanko gold mine definitive project plan as filed on SEDAR on Nov.
13, 2014.
ADUBIASO EXTENSION -- MEASURED AND INDICATED RESOURCES
Cut-off (g/t gold) Tonnage Grade (g/t) Ounces
0.5 992,408 1.43 45,612
0.6 833,738 1.60 42,812
0.7 714,505 1.76 40,320
0.8 628,602 1.89 38,249
1.0 482,590 2.19 34,034
ADUBIASO EXTENSION -- INFERRED RESOURCES
Cut-off (g/t gold) Tonnage Grade (g/t) Ounces
0.5 406,846 1.69 21,394
0.6 328,860 1.96 20,042
0.7 269,528 2.24 18,815
0.8 239,597 2.42 18,086
1.0 191,347 2.79 16,657
Notes
The cut-off grade used for the Asanko gold mine -- phase 1 project resources
(Nkran, Adubiaso, Abore, Dynamite Hill and Asuadai) was 0.8 g/t. Columns may
not add up due to rounding. All figures are in metric tonnes. The mineral
resources are stated as in situ tonnes. Individual densities were used per
ore domain. The tonnages and contents are stated as 100 per cent, which
means no attributable portions have been stated in the table conversion from
grams to ounces -- 31.10348.
Adubiaso and Nkran extensions development timeline
Work is nearing completion on the mineral reserve estimates for the two extensions, based on Whittle pit designs, waste dump planning and water management programs. The permitting process is also making good progress. As both deposits are located on the company's existing Abriem mining lease, permitting only requires that a supplementary environmental impact study (EIS) be submitted to the relevant government regulatory bodies. The supplementary EIS for Adubiaso extension has been submitted and the Nkran extension permit applications will be lodged with the relevant regulatory bodies by the end of the third quarter of 2016. The requisite permits are expected to be granted during the second half of 2016.
Mining operations are expected to begin immediately following the receipt of the permits. As such, the two extensions have been incorporated into the new Asanko gold mine life-of-mine plan, which is expected to be announced in the third quarter of 2016 as part of the definitive feasibility study for the phase 2 expansion project.
Akwasiso satellite deposit
The Akwasiso deposit (annexure 1) is located on the Nkran shear corridor and lies approximately two km north of the current Nkran pit, immediately north of Nkran extension and approximately five km south of the Dynamite Hill deposit. Until recently the area was designated as small miner concessions. Asanko recently obtained the rights to the mineral concessions, which are contained within its existing Abriem mining lease.
The Akwasiso target area is particularly prospective as it was previously drilled by the past owner of the mineral concessions and has a known non-compliant mineral resource estimate. Asanko is completing a 5,000 m diamond drilling program primarily designed to validate the geology and grade continuity of mineralized zones defined by the previous operator's campaign in 2000 and 2001. The company expects to publish an initial NI 43-101-compliant mineral resource estimate during the fourth quarter of 2016.
To date a total of 3,500 m of diamond drilling has been completed with assay results pending. Visual inspection of the current program's core shows similarities of the mineralization style to Nkran and other satellite deposits, with intrusive granite, a mixed sedimentary package, with altered and mineralized sandstone units with silicification and quartz veining. The historical drilling only evaluated the deposit to a depth of 100 metres. The current program will incorporate deeper drilling to more fully understand the potential of the deposit. Drilling results will be announced as they become available.
Qualified persons statements
The mineral resource estimate (MRE) for the Nkran extension was prepared by Joseph Mamphey, diploma, geological engineering, MSc, geostatistics, MRM, Asanko gold mine, and audited by Charles J. Muller, BSc, geology (honours), PRSciNat, MGSSA, a director of CJM Consulting Pty. Ltd. of Johannesburg, South Africa. The MRE is reported in accordance with Canadian National Instrument 43-101 requirements and the South African Code of Reporting of Exploration Results (SAMREC), which is consistent with the Canadian Institute of Mining, Metallurgy and Petroleum estimation best practice guidelines in Canada. Philip N. Bentley, PRSciNat, FGSSA, MSc, MSc (minex), executive geology and resources for Asanko, is a qualified person with respect to NI 43-101 and has supervised the scientific or technical information for this press release.
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