Ashanti Gold Intersects New High Grade Zone at Gourbassi West, Kossanto East Project, Mali - 30 metres of 2.01 g/t gold (including 2 metres of 7.94 g/t and 3 metres of 4.36 gold)

September 12, 2017 Download PDF

VANCOUVER, BC – September 12, 2017 Ashanti Gold Corp. (“Ashanti” or the “Company”) - (TSXV: AGZ) is pleased to announce results from an additional fifteen Gourbassi West drill holes from the recently completed 53 Reverse Circulation (“RC”) drill hole, 6073 metre drill program that tested gold mineralization on the Kossanto East Project (the “Property”) in western Mali (see August 2, 10, 21 2017 press releases). Drill highlights include:

  • 30 metres @ 2.01 g/t Au including 2 metres of 7.94 g/t Au and 3 metres @ 4.36 g/t Au (GWRC131)
  • 13 metres @ 1.33 g/t Au including 5 metres @ 2.75 g/t Au (GWRC140)

The results reported here and in previous press releases, significantly expand the area of known mineralization and reveal high-grade mineralization within several new locations (Table 1 and Figure 1). In particular, this batch of results confirms high grade mineralization within a newly identified northeast trending zone (GWRC131; Figures 1, 2 and 3). Mineralization interpreted from this phase of drilling and from historic drilling aligns along a ~1.3 km northwest-trending 30-70 metre-wide zone parallel to the important Mali-Senegal Shear Zone to the east (Figure 4). The presence of an additional northeast zone and its intersection with the known northwest zone presents new opportunities for expanding the gold mineralization at Gourbassi West, where shallow historic RAB holes indicate the presence of mineralization over an area >150m wide. Further drilling is warranted to test continuity and depth extensions of gold mineralization as well as parallel structures that could significantly increase any future gold resource.

Tim McCutcheon, CEO, said “these results are very exciting, as they show the size of the Gourbassi West target is much larger in both strike and width than was previously understood. Now we are discovering new mineralized structures that we will test further in our next drilling campaign.”

The Gourbassi West target now shows gold mineralization along a 1.3 km north-northwest trend that has been expanded by Ashanti drilling to >100m wide. In addition, Ashanti drill results support the interpretation of a new northeast-trending mineralized zone that intersects with the main Gourbassi West mineralized zone and continues on to the northeast an unknown distance (Figure 1). The host volcanic breccia is part of an extensive felsic volcanic complex inferred to be near the top of the local greenstone belt sequence, the most common position for large gold deposits to occur in felsic rocks of greenstone belts. Key structural controls appear to parallel the Senegal-Mali and Main Transcurrent Shear Zones (Figure 4) as evidenced by the alignment of mineralization parallel to both features.

Table 1: Highlights of Gold Intercepts GWRC131 to GWRC145

Hole # From (m) To (m) Interval (m)* Au (g/t)
GWRC131 23 53 30 2.01
incl. 28 30 2 7.94
incl. 43 46 3 4.36
66 70 4 0.40
78 90 12 0.37
103 112 9 0.44**
117 119 2 0.34
GWRC132 0 97 97 0.36
incl. 0 31 31 0.47
incl. 90 97 7 0.78
GWRC133 63 72 9 0.70
incl. 66 70 4 1.24
GWRC134 30 32 2 0.42
59 61 2 0.28
GWRC135 41 43 2 1.03
51 70 19 0.38
GWRC136 48 50 2 0.31
GWRC137 no significant intercepts
GWRC138 14 22 8 0.61
87 89 2 0.54
GWRC139 17 91 74 0.49
incl. 18 21 3 1.14
incl. 44 45 1 3.77
incl. 51 52 1 3.75
110 112 2 3.26
139 142 3 0.66
GWRC140 24 37 13 1.33
incl. 29 34 5 2.75
44 50 6 0.97
incl. 45 46 1 3.07
GWRC141 15 26 11 0.67
GWRC142 25 30 5 1.55
incl. 28 29 1 3.99
GWRC143 no significant intercepts
GWRC144 61 63 2 0.54
GWRC145 no significant intercepts

*Intervals are intercept widths in drill hole and not true widths. There is insufficient geologic information to determine true widths at this stage of the project. Drill holes are oriented to provide the best intercept for the interpreted dip direction of mineralization.
**One sample interval missing

Figure 1. Location map showing Gourbassi West and the Gourbassi West mineralization envelope based on historic and current drilling. Note northeast and northwest trends parallel the Main Transcurrent and Senegal-Mali Shear Zones, respectively. The locations of cross sections reported here are shown.

Figure 2. Cross section 5950 showing results from historic drilling (GRC46 and 47) and three holes reported here and previously (GWRC129, GWRC130, and GWRC131). The mineralized zone to the left corresponds with the newly identified, northeast-trending mineralized zone and hosts high grade mineralization.

Figure 3. Cross section 5375 showing gold intercepts from historic drill holes and currently reported Ashanti drill holes GWRC140 and 141. Note possible parallel mineralized zone (right side of the diagram).

Figure 4: Regional geologic map of the Kedougou-Kenieba Inlier, the most northwesterly exposure of Birimian rocks in the West African craton. The Kossanto East property lies between two regional structures, the Senegal-Mali Shear Zone and the Main Transcurrent Shear Zone both of which feature prominently in localizing mineralization for numerous gold deposits. Structural relationships on the property suggest that structures parallel to these shear zones pass through the property and control mineralization.

About Kossanto East Project

The Kossanto East Project is a 66.41 km2 concession in the prolific Kedougou - Kenieba Inlier, the northwestern most exposure of Birimian rocks in West Africa and host to the Loulo and Sadiola group of world class gold deposits (Figure 4). The Property hosts two principle historically drill-tested targets, Gourbassi East and Gourbassi West (Figure 1) and several surface anomalies identified in historic surface samples and Rotary Airblast (RAB) drill holes. Geochemical anomalies identified by previous explorers and Alecto Minerals PLC led to drill testing and successful intersection of gold mineralization.

ABOUT ASHANTI GOLD

Ashanti is a gold-focused, exploration and development company with advanced projects in the northern Ashanti Belt of Ghana and the Kenieba Belt of Mali. The Company targets projects where existing work demonstrates attractive potential for near-term mine development and where it has a competitive advantage due to past work experience of the team and specific project know-how.

On Behalf of the Board of Directors of
ASHANTI GOLD CORP.

"Tim McCutcheon"

Tim McCutcheon
CEO

For further information, please contact:
Ashanti Gold Corp.
2300 – 1177 West Hastings Street
Vancouver BC, V6E 2K3
Phone: 604-638-3847

Qualified Person and Quality Control/Quality Assurance

Dr. Paul Klipfel, CPG (AIPG certification #10821), Ashanti’s COO and Chief Geologist is a Qualified Person as defined by Canadian NI 43-101 and has supervised the preparation of the scientific and technical information that forms the basis for this news release. Dr. Klipfel is responsible for all aspects of the work including the Quality Control/Quality Assurance programs. Dr. Klipfel is not an Independent Person, as he is a shareholder of Ashanti.

Cautionary Statement on Forward-Looking Information

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This press release contains forward-looking statements and forward-looking information (collectively, "forward looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement, timing and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the commodity markets generally, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of the Company to obtain any necessary permits, consents or authorizations required, including TSXV acceptance, for its planned activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.

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