Ashanti Belt Project

Highlights:

  • The Ashanti Belt Project includes three prospecting licenses located in the Ashanti Belt in central Ghana
  • AGZ has the right to earn 100% of Red Back’s interest in the Project by expending US$1.0M on exploration over two years
  • Targets include shear zone-hosted gold-quartz vein systems (orogenic) and gold in Tarkwaian conglomerates
  • Exceptional surface, auger, and drill intercepts in an under-explored, geologically prospective region

Overview:

Ashanti Gold has entered into an earn-in option agreement with Red Back Mining Ghana Limited (“Red Back”) an indirect, wholly owned subsidiary of Kinross Gold Corporation (“Kinross”), to earn an interest in three prospecting licenses located in the Ashanti gold belt in central Ghana.

The Project consists of three licenses (Kwahu Oda, Asankare, and New Abirem) that cover a total area of approximately 68 km2 in the prolific and productive gold belt of Ghana. These licenses have been selected to build on previous work by Red Back and Newmont. Their location is based on the presence of shear-zone-hosted gold targets similar to those found along the northwest and southeast margins of the Ashanti Belt. Directly to the south of the Project is Newmont’s Akyem mine, which was commissioned in 2013 and produced 473,000 ounces of gold in 2015, making it one of the largest annual gold producers in the world.

Historical Drill Results:

Red Back drilled on the Kwahu Oda license 2,495m Reverse Circulation (“RC”) holes to an average depth of 29m in 2003. Highlight historical results for these RC holes for gold mineralization include: 10m @ 8.8 g/t, 11m @ 1.5 g/t, 8m @ 3.1 g/t, 7m @ 3.9 g/t, 5m @ 2.5 g/t. (This information is based on incomplete, previously unpublished historic data provided by Red Back. This information is historic in nature and is not part of any resource estimate). Numerous other soil and auger geochemical samples on each license remain untested.

Ashanti Belt Project - Ashanti Gold Corp
Figure 1. Location map of the Project, Newmont’s Akyem mine and Ashanti’s Anumso Project within the broader Ashanti greenstone belt.

Ashanti Belt Project - Ashanti Gold Corp
Figure 2. Location map of the Kwahu Oda, Asankare, New Abirem licenses (the Project) relative to Newmont’s Akyem mine and Ashanti’s Anumso Project.

Ashanti will be the operator of exploration and development programs on the Project during the term of the Option Agreement.

Earn-in option:

The option agreement provides Ashanti with the right to earn 100% of Red Back’s interest in the project by expending US$1.0M on exploration over two years. Upon completion of its earn-in rights, Ashanti will have acquired 100% of Red Back’s interest in the Project, subject to Red Back retaining a 2% net smelter royalty. The Ghanaian government retains a 10% carried interest in all minerals projects in Ghana, therefore upon completion of the earn-in agreement Ashanti will have a 90% net interest.