Ashanti Expands Sana Zone at Gourbassi East, Kossanto East Project, Mali

July 20, 2018 Download PDF

5m of 2.40 g/t gold and 8m of 1.46 gold (including 3m of 3.12 g/t gold)

VANCOUVER, BC – July 20, 2018 Ashanti Gold Corp. (“Ashanti” or the “Company”) - (TSXV: AGZ) announces additional results from the recently completed 105 hole Reverse Circulation (“RC”) and Diamond Drill (“DD”), 12,283 metre drill program that tested mineralization on the Kossanto East Project (the “Property”) in western Mali (Figure 1). Results presented here and previously (see July 13, July 3 and June 28 Press Releases) demonstrate strong positive results from drill holes at Gourbassi East. Results reported here broaden the width and increase the down-dip extent of known mineralization of the Sana Zone, Gourbassi East. In addition, widely spaced reconnaissance drill holes have yielded significant results along the new Koli Zone where surface soil anomalies, historic RAB and trench results along with altered felsic tuff at the surface indicated the presence of more extensive mineralization. The Company awaits further results from the Gourbassi East Main Zone and from Gourbassi West and will release these results shortly.

Tim McCutcheon, CEO, said “What we liked about Kossanto East when we acquired the project was a significant amount of exploration risk had been removed by the previous operator and that those previous results were very attractive. However, where we saw the main opportunity, and the added value of the Ashanti team, was the potential for demonstrating much larger areas of mineralization throughout the license. The growth of the Sana Zone and scope for future growth of the Koli Zone fits our thesis for Kossanto East’s potential.”


Figure 1. Overview of the Kossanto East property showing the location of Gourbassi East and Gourbassi West mineralized zones. Yellow dashed lines outline areas of anomalous soil samples (see March 18, 2018 Press Release). The Faleme River marks the southern boundary of the concession.

Sana Zone
Gold mineralization associated with altered rhyolite and felsic tuff to the southwest of the Main Zone was previously tested by Ashanti’s 2017 drilling program which verified and expanded on limited historic drilling. The 2017 program resulted in identification of a northwest-trending west-dipping gold mineralized zone approximately 300m long and 50m wide. The first 2018 results reported here demonstrate a broader zone of mineralization (approximately 70m wide) and greater down-dip continuity (at least 120m). Gold mineralization at the Sana Zone is associated with silicification, quartz-sericite-pyrite (QSP), carbonate and possible albite alteration occur along with multi-stage veinlets and disseminated gold mineralization, similar to that within the Main Zone. Figure 3 shows a cross section of results at the Sane Zone. Highlight intercepts for Sana Zone drill holes are reported below.

Hole From
(m)
To
(m)
Interval*
(m)
Grade
(g/t)
GERC204 5 6 1 0.77
14 22 8 1.16
33 41 8 1.46
incl. 34 37 3 3.12
72 76 4 0.54
115 121 5 1.53
GERC205 1 6 5 2.40
incl. 1 3 2 4.82
13 15 2 1.55
31 37 6 1.07
40 42 2 0.39

*Intervals indicated are not true widths as there is insufficient geologic information to calculate true widths. However, drill holes have been drilled to cross interpreted mineralized zones as close to perpendicular as possible.


Figure 2. Gourbassi East Main Zone and new satellite Sana and Koli Zones reported here. Yellow dots show Ashanti’s 2018 drill holes. Red dotted lines outline soil anomalies shown in Figure 1. Inset area for the Koli Zone is provided in detail in Figure 4.


Figure 3. East-west cross section at 1483500 north shows mineralization intersected in Ashanti drill holes GERC204 and GERC205 along with historic data GRC53 and Trench 27. The light-colored zone to the right shows the projected location of the Main Zone. The bottom panel shows the location of drill holes in plan view.

Koli Zone
The Koli Zone is an emerging new mineralized area in which Ashanti’s 2018 reconnaissance drilling tested northwest-aligned areas with artisanal workings, altered rhyolite and felsic tuff, soil anomalies, and historic intercepts in shallow RAB holes and trenches over a broad area approximately 1200m by 400m. Results indicate the presence of gold mineralization along several smaller corridors. Figure 2 shows the relative location of the Koli to the Gourbassi East are and Figure 4 shows important data demonstrating gold mineralization results over multiple exploration seasons. Further testing of this area is planned for the future.


Figure 4. The Koli Zone consists of gold intercepts in reconnaissance drill holes over an area approximately 1200m x 400m. Light-colored text boxes indicate Ashanti results. Gray text boxes indicate historic results from RAB holes and a trench.

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. The Property hosts two principle historically drill-tested targets, Gourbassi East and Gourbassi West and several surface anomalies identified in historic surface samples and Rotary Airblast (RAB) drill holes. Geochemical anomalies identified by previous explorers led to drill testing and successful intersection of gold mineralization. The results reported here are from Gourbassi East. Further results from Gourbassi East and Gourbassi West are anticipated in the coming weeks.

ABOUT ASHANTI GOLD
Ashanti is a gold-focused, exploration and development company that targets projects where it has a competitive advantage due to past work experience of the team and specific project know-how. The Company is driving forward its 100%-owned Kossanto East project in Mali on the prolific Kenieba Belt, which hosts such deposits as Loulo, Fekola and Sadiola. Ashanti is also working to advance, together with its earn-in partners, the Anumso project and the Ashanti Belt project in Ghana, which are near-adjacent to the Akyem deposit.

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 Assurance / Quality Control

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.

Certified Reference Materials and Blanks are inserted into the sample stream at the rate of 1:20 samples. Field duplicates are collected at the rate of 1:50 samples. All samples have been analyzed by SGS Laboratories in Bamako with standard preparation methods and 50g fire assay with atomic absorption finish. SGS does their own introduction of QA/QC samples into the sample stream and reports them to Ashanti for double checking. Higher grade samples are reanalyzed from pulp or reject material or both.

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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