Kubi

Highlights:

• Located in Ghana, West Africa: #7 gold producer in the World and #1 gold producer in Africa; stable title, regulatory and taxation history;
• Prime location: Kubi Gold Mine adjoins to the south of the 66 million ounce (pre-mining resource) AngloGold Ashanti Obuasi mine;

The Kubi Main gold deposit, as with many West African gold deposits, is located on a major structural ‘break’ between Birimian and Tarkwaiian Proterozoic age meta- volcanics and sediments.The famous Ashanti shear zone that hosts the major Obuasi orebodies transects the property just to the west of the Kubi Main deposit. Recent exploration has outlined several promising prospects, including the new Kubi East IP targets, the 513 Zone, Kubi South and other recent exploration discoveries, which may also develop new mineral resources with further exploration.

• Brownfield near term development project: AngloGold Ashanti mined under a lease arrangement 58,696 oz Au @ 3.65g/t from surface oxide ore up to 2005 and then backfilled the pits to daylight; US$30 million in previous drilling, exploration and development by BHP, Nevsun Resources, PMI Gold (Asanko Gold);

The Kubi Main deposit was initially explored by BHP in the 1980’s; in the late 1990’s by Nevsun Resources Ltd. of Canada; and from 2006 thru to 2012 by PMI Gold Corporation. Over US$30 million in exploration has occurred on the Property to date. Nevsun leased the near surface oxide resource to Ashanti (later AngloGold Ashanti) in 1998, and through 2005, 500,000 tonnes of ore with an average grade of 3.65g/t Au producing 59,000 ounces of gold was mined from two small open pits. Ore was trucked from Kubi a distance of 25 km to Anglo’s oxide processing facility at Obuasi.The pits were then backfilled and reclaimed.

• Large exploration upside has been defined from preliminary discovery drilling elsewhere on Property;
• Limited deep drilling suggests grade increasing with depth; significant areas with +8.0 g/t Au grade indicated – to be tested in proposed resource to reserve upgrade underground drilling program from decline;
• Good potential to increase gold resources at depths below 400 metres; ore shoots at nearby Obuasi mine property outlined to over 3 km depth;
• Recent 3D magnetic modelling suggests that the structures which host the Kubi Main gold mineralization are vertically continuous to over 3.5 km in depth;
• Recent exploration has outlined several promising prospects, including the Kubi East IP targets, the 513 Zone, Kubi South and other recent exploration discoveries, which may also develop new mineral resources with further exploration;
• Current NI 43-101 Mineral Resource: Measured 0.66 million tonnes @ 5.30 g/t Au for 112,000 oz; Indicated 0.66 million tonnes @ 5.65 g/t Au for 121,000 oz; and Inferred 0.67 million tonnes @ 5.31 g/t Au for 115,000 oz – filed on SEDAR.

Kubi Location -Obuasi Area, Geology.

Key facts:

• 20-year renewable mining lease issued in 2008, 19.16 sq. km;
• Up to 90% by Asante (Ghana Government maintains 10% equity interest;subject to final closing);
• Includes two ‘pending’ concessions, adjoining to the west (subject to further Governmental approvals and transfers from a third party, and final closing);
• Excellent nearby mining infrastructure, including nearby under-utilized mills.

Kubi Gold Mine Development Plans:

• Kubi Gold Mine being re-developed as a potential near-term open pit operation and circa 80,000 oz Au per year underground producer;
• Currently reviewing a conventional 4m x5m with direct shipping or custom milling @500 – 1000 tpd. 
• Preliminary design work on portal and exploration decline completed. 
• Metallurgical evaluation and process plant preliminary design completed by Metso Outotec in 2021
• Potential for delivery of 1,000 t/d and up to 80,000 oz Au per year.

Introduction:

• Kubi Gold (Barbados) Limited(“KGBL”), owns 90% of the Kubi Mining Lease (10% Government of Ghana equity stake)in south west Ghana, located immediately south of AngloGold Ashanti’s Obuasi mine (66-million-ounce pre-mining resource) and 25 km east of Perseus Mining Limited’s 6.6 million-ounce Edikan Gold Mine.
• Asante Gold Corporation (“Asante”) is a Canadian public company listed on the CSE Exchange and trades under the symbol ‘ASE’ and on the Frankfurt Exchange under the symbol ‘1A9’. Asante has reached agreement with Goknet Mining Company Limited of Accra, Ghana (“Goknet” owns 100% of the shares of KGBL) to earn up to 100% of Goknet’s interest in Kubi and in up to eight prospecting licenses which Goknet may acquire from a third party (pending and subject to final transfers and all Governmental approvals). Two of these licenses adjoin Kubi to the west; and six of the licenses are located on the Asankrangwa gold belt and are collectively referred to as the Ashanti II Gold Project. Goknet, a private Ghana corporation, acquired its interest in KGBL and the rights to the eight prospecting licenses in September 2014.
• To purchase Kubi, Asante has agreed to issue Goknet seven million shares in it’s capital stock and deliver 8,000 ounces of gold from future production on an if as and when basis; and for the other pending concession acquisitions, up to a further total of three million shares on a pro-rata basis as clear title to the prospecting licenses are conveyed to Asante; and by reserving a 2% NSR royalty to Goknet re Kubi, and on each of the Ashanti II prospecting licenses conveyed.The Ghana Government holds a statutory 10% free carried (dividend interest) and currently applies a 5% NSR interest and 35% mining tax regime (recently these have been selectively reduced for other mining companies to facilitate new capital investment). Final closing is subject to removal of all subject clauses – including Ministerial consent. Goknet and Asante are related through one common director.

Description:

• The Kubi Main deposit gold mineralization is contained within a north – northeast trending shear zone close to the Birimian-Tarkwaiian contact. The mineralization occurs in a 1.0 to 15.0-metre-thick (average true width 2.1 metre) garnetiferous horizon within Birimian metasediments. This garnetiferous horizon contains fine grained gold associated with minor (5-15%) pyrite and pyrrhotite as well as some coarser gold which is associated with relatively narrow quartz veins. Some mineralization occurs in quartz veins and veinlets that cross-cut the Birimian-Tarkwaiian contact, outside of the main garnetiferous horizon. The deposit is situated at the intersection of the main NE-SW trending Birimian-Tarkwaiian contact and a major north/south trending basement fault. Structurally, it appears that the prominent foliation strikes at approximately AZ 020° and dips steeply to the east while the mineralized zone has a similar strike but dips steeply to the west away from the Birimian-Tarkwaiian contact.
• The Kubi Main deposit is situated adjacent to the main Birimian – Tarkwaiian contact. Seven mineralised zones have been defined within three major structural corridors:

(i) Main Garnet Zone
(ii) Birimian – Tarkwaiian contact
(iii) Hangingwall and Footwall Shears

• The ‘Garnet Zone’ constitutes 85% of the Kubi Main Resource. A distinct, laterally persistent rock unit, located within the major boundary shear zone and characterised by dense garnet and amphibole development, pyrrhotite and free gold within quartz veins. At Kubi Main, it can be traced for two km along a consistent 020° strike, and with a steep westerly dip of 85° – 75°. It is still open at depth. The deepest intersection to date was 5.2m of 7.7 g/t Au at a depth of 700 to 705m. A ‘Garnet Zone’ equivalent has been intersected with associated grade in exploration holes drilled at Kubi South and at the ‘513 Zone’ which is also open to the north and to depth.

Exploration Work Completed:

• Extensive exploration work has been completed over the Kubi area since 1980’s:

Kubi Exploration Aircore drill collars (from PMI Gold Quarterly Activity Update, Mar 2013)

Mineral Resource Estimate:

• NI-43-101 Mineral Resource Estimate by dMb Management Services, 2022

History

• Asante estimates that over US$30 million in exploration and development work has occurred at Kubi since the mid 1980’s, with 197,857 metres of drilling in 7,063 holes completed:
• First worked by artisanal miners driving adits on high grade quartz reefs in the1920’s;
• BHP (now BHP Billiton) in 1988 completed major regional soil sampling and drilled 12 discovery DDH holes on artisanal workings, totaling 1,695m;
• Optioned to Nevsun Resources in 1993, and by 1998 Nevsun completed 68,339m of drilling in 218 DDH holes, 19,274m of RC drilling in 229 holes, and 14,296m of RAB drilling in 499 holes, outlining the Kubi Main deposit and several other showings;
• Subsequently leased to and mined by Ashanti Goldfields Co. Ltd. (now AngloGold Ashanti) to 2006 recovering 58,696 ounces of gold at 3.65g/t from two small open pits. Ashanti completed 46,263m of grade control drilling in 3,266 holes, and 2,017m in 29 RC holes;
• Open cut pits were backfilled and reclaimed, and mining leases returned to Nevsun. The property was then sold to PMI Gold Corporation in 2007, who completed preliminary scoping studies, air and ground geophysics and 11,174m of DDH in 77 holes, 24,779m in 549 aircore holes, and 10,021m in 2,184 auger holes. In 2009 the “513 zone” was discovered by VLF-EM geophysics1.2 km west of the Kubi Main deposit;
• Acquired 100% by Goknet in September 2014.

Core length 30 meters at 7.47g/t Au (estimated true width 7.5 m)

Core length 30 meters at 7.47g/t Au (estimated true width 7.5 m)

VG – DDH K21-001, quartz vein at 89.3 meters 1.0m@14.2 g/t Au

VG – DDH K21-001, quartz vein at 89.3 meters 1.0m@14.2 g/t Au