Asanko Gold Inc. (“Asanko” or the “Company”) offers this commentary in response to a seriously misleading criticism of its October 2014 Mineral Resource Estimate (“MRE”) and the Phase 1 Definitive Project Plan (the “Plan”) for the Asanko Gold Mine in Ghana. The criticism was published by the Toronto based shortseller K2 & Associates Investment Management Inc. (“K2”) on June 28, 2016.
published in accordance with international guidelines and industry best practice. In February 2014, Asanko acquired PMI Gold Inc (“PMI”) and merged its Obotan project with the Esaase project to form what is now the Asanko Gold Mine. Following the acquisition, Asanko undertook a complete re-assessment of the MRE for the Obotan project, namely the Nkran, Adubiaso, Abore, Dynamite Hill and Asuadai deposits.
% of Drill Data
Avg. Hole Depth
Gold ounces (millions)
Resolute RC & DD combined
Physical Inventory Change
Charles Muller is a Qualified Person (“QP”) under Canadian National Instrument 43-101 (
Disclosure Standards for Mineral Projects) and is independent of Asanko. He conducted an extensive review of all of the
available technical data, databases, systems and geological models. In addition, he has visited the Nkran deposit on multiple occasions.
Mr. Muller has over 25 years of experience in resource modeling including specific, relevant experience acting as Independent QP since 1994
for Goldfields in Ghana. For the past 12 years he has been the QP for the Goldfields Damang Mine, also located in Ghana. Damang bears hydrothermal vein hosted mineralization similar to the Nkran deposit. Mr. Muller is a member of both the Geostatistical Association of Southern Africa and the South African Council for Natural Scientific Professions (Pr. Sci. Nat. Reg. No. 400201/04).
Thomas Obiri-Yeboah, Pr. Eng., Senior Mining Engineer, is a QP under NI 43-101 and is independent of Asanko.
The Mineral Reserve Estimate was prepared under his supervision. He is a member of the Engineering Council of South African (ECSA), Registration #20100340. His technical expertise includes over 20 years in the mining sector covering production, planning and project work and he has been involved in numerous projects around the world with both base and precious metals. He spent 12 years modeling gold deposits for AngloGold Ashanti in West Africa.
Mineral Resources and Reserves are defined terms derived from Canadian Institute of Mining definitions. Similar terminologies are in use in Australia (JORC) and South Africa (SAMRAC) and are being considered for adoption in the United States.
Mineral resources do not have demonstrated economic viability, but have reasonable prospects for eventual economic extraction. They fall into three categories: measured, indicated and inferred. Measured and indicated mineral resources can be estimated with sufficient confidence to allow the appropriate application of technical, economic, marketing, legal, environmental, social and governmental factors to support evaluation of the economic viability of the deposit. For measured resources: we can confirm both geological and grade continuity to support detailed mine planning. For indicated resources: we can reasonably assume geological and grade continuity to support mine planning.
Mineral reserves are the economically mineable part of measured and/or indicated mineral resources demonstrated by at least a preliminary feasibility study. The reference point at which mineral reserves are defined is the point where the ore is delivered to the processing plant. Mineral reserves fall into two categories: a) proven reserves: the economically mineable part of a measured resource for which at least a preliminary feasibility study demonstrates that economic extraction is justified; and b) probable reserves: the economically mineable part of a measured and/or indicated resource for which at least a preliminary feasibility study demonstrates that economic extraction is justified.
United States investors are advised that while “Measured” and “Indicated” resources are recognized and required by Canada and other countries, the United States Securities and Exchange Commission does not recognize them. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves.
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