Building a mid-tier gold producer

Exploration

Asanko’s concessions in Ghana are shown in the figure below.

The Asankrangwa Gold Belt occupies a 10 to 20 km wide zone along the axis of the Kumasi Basin, and locates equidistant between the better known Sefwi (to the west) and Ashanti (to the east) Belts. The geology of the Asankrangwa belt comprises strongly deformed Birimian meta-sediments, with minor granitic intrusions and mafic igneous rocks. The lithological units are cut by steeply north-west dipping primary and secondary structures. It is this structural and geological architecture that have been important in the localisation of gold mineralisation, and provides the capacity for enhanced fluid flow forming major alteration systems in association with the gold bearing systems. The gold mineralisation is linked to at least two separate deformation events and fluid emplacement, with certain similarities to the gold depositson the Sefwi and Ashanti Greenstone Belts. The major difference between the belts is the maturity of exploration. The Asankrangwa Gold Belt is underexplored and is emerging as a significant gold belt, with 0.6 million ounces of historic production and 4.5 million ounces of reserves in development by Asanko.

Near Mine Exploration

Asanko is conducting a near mine exploration program focused on high priority targets that have the potential to add oxide resources to the Asanko Gold Mine using systematic and low-cost exploration methods. This follows positive results from an extensive regional prospectivity mapping exercise undertaken in 2014 by external consultants. The study concluded that only 7% of Asanko’s highly prospective concession area had been historically explored effectively. The study has provided a better understanding of the controls on the location of gold deposit formation and the expression of these controls in exploration data and a significant number of new exploration targets have been generated. The identified targets provide a clear opportunity for the exploration team and offer the potential for rapid delineation of new deposits and resource areas.

Significant potential exists for Asanko to generate further value on its ground holdings as demonstrated with the recent discovery of the Dynamite Hill deposit. In 2016, three additional near mine, near surface deposits were discovered - Nkran Extension, Adubiaso Extension and Akwasiso.

Asumura

The Asumura Property is located on the western boundary of the Sefwi-Bibiani belt, which is one of three major gold producing belts in southwest Ghana. The project is located 65 km southwest of Newmont’s Ahafo deposits (which have Mineral Reserves of 12.2 million ounces at 2.21 g/t Au and Mineral Resources of over 17 million ounces of gold). The targets at Asumura are disseminated open pit gold deposits. Mineralization at Asumura is spatially associated with NE trending faults in a variety of lithologic settings. Asanko has recently reinterpreted the geophysical data covering the area, and the ensuing refined structural model has highlighted a number of new drill targets. These will be assessed during 2017.