On August 9, 2016, Asante Gold Corporation (CSE:ASE/ FRANKFURT:1A9) announced that the Special Committee of their Board has reached agreement with Goknet Mining Company Limited (“Goknet”) to close the acquisition of the Kubi Mining Leases on terms as substantially contained in the Kubi Definitive Option Agreement dated 28th February 2015. (details). Interested parties are encouraged to contact Asante directly at www.asantegold.com.
Kubi Gold Mine was first drilled by BHP, following up on old artisanal workings.
BHP sold Kubi to Nevsun Resources of Canada who completed $20 million in exploration drilling and outlined the Kubi Main gold deposit.
In 1998 to 2005, Nevsun, in return for a royalty, leased the property to AngloGold Ashanti who mined 500,000 tonnes of ore from two small open pits at an average grade of 3.65 g/t Au, and produced 59,000 ounces of gold. Ore was trucked from Kubi to the AGA processing facility at Obuasi, 25 km away.
Kubi was acquired by Goknet from Asanko Gold in August 2014, along with an additional 8 exploration concessions on the Asankrangwa Gold Belt.
On February 28, 2015, Goknet entered into a definitive Option Agreement with Asante Gold Corporation whereby Asante can earn majority interest in Kubi.(details)
On August 9, 2016, Asante Gold Corporation announced that the Special Committee of their Board has reached agreement with Goknet Mining Company Limited (“Goknet”) to close the acquisition of the Kubi Mining Leases on terms as substantially contained in the Kubi Definitive Option Agreement dated 28th February 2015. (details)
You can read Fundamental Research Corporation's June 09, 2016 article about Asante Gold Corporation here.
Kubi Mine Project (showing existing pit and proposed decline in blue)
The current project will mine from a decline under the previous pit.
Expected production will be 500 to 650 tpd @ 6 to 8 g/t Au, producing 30,000 to 40,000 oz gold per year.
Two milling options are being evaluated:
- Toll Milling - $US 20 million funding required; 12 month timeline to production;
- Build Mill - $US 50 million; 18 month timeline.
The project has a NI 43-101 Mineral Resource (diluted):
- Measured 0.66 Mt @ 5.30 g/t Au for 112,000 oz gold;
- Indicated 0.66 Mt @ 5.65 g/t Au for 121,000 oz; and
- Inferred 0.67 Mt @ 5.31 g/t Au for 115,000 oz.
Resource is open to expansion at depth.
Ore shoots at the nearby +66 million oz Obuasi mine, which has been in production since 1897, have been outlined to over 2.5 km depth. The World Class resource size comes from exceptional dip continuity, with some 3 million ounces of gold in each plunging ore shoot over a lateral distance of 11.5 km.
Drill indicated +8 g/t Au high grade areas will be targeted for early production in an underground $US1.5 million resource to reserve definition drilling program from drill bays located in the 4m x 4.5 m decline.
Objective is to develop high grade stopes >8 g/t Au for early production.
Conventional shrinkage mining to minimize dilution.
Lower grade material will be stockpiled for later shipping / processing.
Design work on portal and exploration decline completed.
Temporary operating permit to commence construction issued.
Excellent mining infrastructure, experienced labor available, near the centre of major Obuasi mining camp.
20 year renewable mining lease issued, 12 years remaining.
Large exploration upside on 52 sq. km land package.
The project is located in Ghana, with a stable title, regulatory and taxation regime.
Ghana is the #10 gold producer in the World and is the #2 gold producer in Africa.
Diaso and Other Concessions
On August 9, 2016, Asante Gold Corporation (CSE:ASE/ FRANKFURT:1A9) announced that the Special Committee of their Board has reached agreement with Goknet Mining Company Limited (“Goknet”) to acquire "Goknet’s interests in eight prospecting licenses: two totaling 38 sq km adjoining to the west of the Kubi Mining Leases; and six contiguous licenses totaling 270 sq km located on the Asankrangwa Gold Belt 15 km to the south west and along strike of the Asanko Gold Mine" (details). Interested parties are invited to contact Asante Gold Corporation directly.
Goknet has been involved in exploration of the Diaso concessions and other concessions in the same area for many years. This was originally in partnership with Tri Star Gold, and later with PMI Gold (now owned by Asanko Gold).
Goknet acquired ownership of the concessions in August 2014.
Goknet has extensive survey data on these concessions with significant gold mineralization noted in drilling.
Kubi Gold Mine
Kubi Location - Proximity to Other Mines
Kubi Location - SW Ghana Geology
Mining at Kubi pit, looking NNE - circa 2005
Kubi Pit - Recent Work
Kubi Pit - Another View
Gold in Quartz