Highlights:
- Option to earn up to 100% from Sikasante Mining Company Limited;
Asante has reached agreement with Sikasante Mining Company Limited of Accra, Ghana (“Sikasante”) to earn up to a 100% interest in its Keyhole Gold Project in Ghana (Government retains 10% equity).
In order to earn up to a 50% interest in the Keyhole Gold Project, Asante has agreed to issue to Sikasante 250,000 shares in its capital stock on receipt by Sikasante of all necessary permits required to commence a drilling program, and to complete $500,000 in work over the next four years (completed). Asante may earn an additional 50% interest by reserving for Sikasante a 2% net smelter returns royalty (the “Sika NSR Royalty”), and on the assignment of the Sikasante licenses to Asante (subject to the consent of the Minister of Lands and Natural Resources) a final payment of 1 million shares in the capital stock of Asante. Sikasante and the Company are related by one common director. All negotiations and final terms of agreement have been approved by a Special Committee of the Directors of Asante.
Douglas R. MacQuarrie, President & CEO states, “The Keyhole has been a key acquisition target since the Keyhole-Obuasi-Akyem structure was outlined in the first modern airborne magnetic survey which my company co-commissioned with Bob Quartermain (Mutual Resources) in 1994. The World Class gold mineralization at Obuasi is at the intersection of this EW structure with the transition zone between volcanic belt/basin sediments and strong northerly trending linears. In my opinion, there is a striking structural similarity in the Keyhole area for the development of Ashanti Obuasi type deep seated gold mineralization amenable to large scale, high grade, underground mining. The widespread gold in the alluvial cover, the strong gold ‘sniffs’ in nearby drilling and in the MEM showing, strongly suggest that sulfide concentrations at or near major structural intersections will be auriferous. We look forward to drilling MEM as soon as funding is sourced.” (January 2012)
Benjamin Gulilat, Managing Director of Sikasante states, “An incredible amount of effort since 2012 went into acquiring the exploration rights to the Keyhole Gold Project. We look forward to working with Asante to prove our theory that large scale gold mineralization may underlie the alluvial mined area. With exploration success we will be able to provide much needed employment and assist the local community in rehabilitating the galamsey ravaged land for agricultural use. We thank the Minerals Commission of Ghana and all our Ghanaian associates for their assistance.”
- Prime location. Keyhole is located 35km southwest of the Galiano Mine/Goldfields Obotan Mine – on the Asankrangwa shear zone; covers 6km stretch alongside and under major alluvial gold workings in the Ankobra River;
The Keyhole area is surrounded by Asante’s Ashanti II Gold Project (up to six prospecting licenses pending acquisition) and is strategically located at the intersection of three major regional gold mineralized trends:
- The Asankrangwa Gold Belt which hosts ~11 million ounces* of gold resources at the Galiano/Asanko Gold Mine (formerly known as PMI Gold Corporation’s Obotan Mine), and Esaase gold projects located 36km and 60km respectively to the northeast;
- A major continental scale basement structure noted on regional aeromagnetic surveys which is spatially related to the 66 million ounce* AngloGold Ashanti Obuasi Mine and the 7.6 million ounce* Newmont Akyem Mine, located 57km and 130km to the east northeast; and
- The north trending Ankobra River lineament and its extensions which connects 90km to the south the +60 million ounces total resource* gold mines at Bogosu, Prestea and Tarkwa operated by Goldenstar, AngloGold Ashanti, and Goldfields, with Newmont’s 15.3 million ounce* Ahafo Mine located 100km to the north. (*past production plus current resources).
- The second phase drilling program on Keyhole has extended the mineralized shear zone outlined in the phase one drill program to a length of 650m and to a depth of up to 150m below surface. Shear zones host most of the major gold deposits in Ghana;
On August 8, 2017, Asante Gold announced that the second phase drilling program on our Keyhole Option in Ghana has extended the mineralized shear zone outlined in the phase one drill program to a length of 650m and to a depth of up to 150m below surface. Drill hole MEM17-11C, drilled on the same section and 25m under the high-grade gold discovery hole MEM17-001B (13.12g/t gold over 3.0m) has intersected a 3.5m wide sulfide and quartz mineralized shear zone with visible gold noted. Further drilling is required to test the shear zone along strike. The mineralized shear zone is well defined by ground geophysical IP and VLF-EM techniques, which gives us significant tools to further define the shear extensions and other potential mineralized shears in the Keyhole area, and in particular under the heavily alluvial mined Keyhole corridor which extends several kilometres to the north and south. Shear zones host most of the major gold deposits in Ghana.
- Drilling at MEM showing intersected 13.1g/t Au over 3.0m at depth of 120m in a shear defined over 850m strike length at the intersection of major country scale auriferous structures;
ASANTE GOLD INTERSECTS 13.1 GPT GOLD OVER 3.0 METRES AT KEYHOLE – IN DRILL HOLE MEM17-001B
A 12-hole drill campaign has recently been completed at Keyhole – to test under the historical MEM showing and other targets outlined by recent ground geophysical surveys.
The program was designed as the first modern drill test of bedrock for gold mineralization in a structurally favourable area where extensive alluvial mining has been ongoing over the last 30 years.
The program consisted of 1,151m of diamond drilling in twelve holes, surface sampling and ground geophysics and has confirmed that the MEM showing is part of a northeast trending gold mineralized shear that is in excess of 250m in length, 120m in depth, and is open to extension in all directions.
Based on the success of this initial program, an expanded program to further test and extend the zone and outline other potential mineralized zones is being planned.
Five holes were spotted in the MEM area where recent grab samples of sulfidic and vuggy quartz reef dump material from artisanal shafts averaged 15.5g/t gold, and historical underground sampling results to 8m widths grading 25g/t gold were reported by Junner, Gold Coast Geological Survey, 1933.
Drillhole MEM17-001B was spotted to test directly under the old MEM shaft area and intersected 13.12g/t gold over 3.0m at a down hole depth of 139m.The intersection was vertically ~120m below the showing in a graphitic shear zone hosted in meta-greywacke/argillite, with quartz, sulfide mineralization and with minor visible gold noted. Core orientation data suggest that the shear zone is sub-parallel to the regional foliation at azimuth 030 to 046 degrees with a moderate to steep dip to the northwest. A photo of the mineralization is:
Drillhole MEM17-002 was drilled 85m to the southwest of the MEM showing, and intersected two shear zones grading 3.43g/t over 3.0m and 3.46g/t over 1.5m at down hole depths of 64.5 and 75.0m respectively. Drillhole MEM17-010B tested the structure 60m to the northeast of the MEM showing intersecting a narrow shear zone that graded 2.0g/t gold over 0.3m. Two of the five drillholes had to be abandoned – one in heavily fractured ground/shear zone and the other in brecciated quartz/greywacke and mud filled underground workings.
In addition, twenty five surface grab/channel samples over ~1.0m widths were taken in recently exposed saprolite in an area ~120m to the northeast of the MEM showing, with the best section grading 1.89g/t over 3m.
The balance of the drillholes were collared to test anomalous IP and interpreted structural targets from a recent ground geophysical orientation program. Regional scale-fracture controlled pyrite mineralization was intersected, accounting for many of the noted IP responses. Areas with interpreted high resistivities appear related to thicker sections of greywacke interbedded with the argillaceous phyllite host.
A map showing the MEM area drill collars and significant gold intersections:
More pictures from this drill program are available at the “Photos&Maps” section.
- Historical underground sampling results to 8m widths of 25 g/t Au were reported (Junner, 1933, Gold Coast Geological Survey); and surface grab samples of quartz reef dump material from artisanal shafts have graded to 54 g/t Au; additional ground geophysical IP and Em surveys planned to outline additional drill targets.
Historical Facts:
- Over the last 40 years a 6km long stretch of the Ankobra River in the Keyhole area has been the subject of intensive local alluvial mining and blocked for large scale mining licenses. The alluvial gold resources have largely been exhausted and/or are unworkable resulting in the area being opened for staking for the first time since the early 1980’s. Sikasante controls two contiguous licences, the northern Sraha license and the southern Ayiem license, covering a combined area of 2.52 sq. km (the “Keyhole Gold Project”).
- A program of ground geophysics was completed by Asante Gold in late 2016 – resulting in the outlining of numerous high priority targets for drill testing. Subject to the results and in order to further define additonal targets, Asante is proposing additional geophysical induced polarization (“IP”) surveying to cover the entire Keyhole and adjacent areas targeting the main Asankrangwa shear zone, the heavily mined alluvial areas and the multiple intersections of the major regional structures.
- Historical grab samples of quartz reef dump material from artisanal shafts at the MEM workings were reported to have visible gold with grades to 49.3g/t Au and underground sampling results over 8 metre reef widths to 25g/t Au (Junner, Gold Coast Geological Survey,1933). The prospect was also sampled in 1993 by the BGR (Federal Institute for Geosciences and Natural Resources of Germany) returning values in dump samples of 54, 12, 1.9, and 11.4g/t Au (Hirdes et al, 1993). Sampling in 1998 by Nevsun Resources (Ghana) Ltd. of 4 quartz vein samples, returned 1.84, 23.05, 2.67 and 0.14g/t Au (Juabo Concession Exploration report, 1998).
- Drilling completed by Nevsun in 1998 in the Juabo granite area,1km to the north and west of the Keyhole on a secondary structure sub parallel to the main Asankrangwa shear, gave best results to 4m @ 16.0g/t Au; 4m @ 6.88g/t Au; 6m @ 4.67g/t Au, with Nevsun concluding that “A significant strike length of this anomalous horizon remains to be tested. It is still possible that further interpretative work and limited field work, in the form of soil sampling and trenching, may define a zone of appreciable gold mineralization.
- Due to the subdued topography, the extensive alluvial cover, heavy weathering and laterization of the local terrane, non quartz vein type auriferous sulfide bearing ores would not be expected to outcrop in surface showings and hence may have escaped detection to date by the usual direct prospecting and soil geochemical methods.
- Test IP survey lines completed by Adansi Gold for PMI Gold Corporation (now Asanko Gold) in 2008 noted anomalous high IP results 800m to the north on the border of the Keyhole and the Ashanti II concessions and another 400m to the east of the MEM showing, and suggest possible sulfide mineralization. Sulfide concentrations in this gold enriched and structurally favourable Keyhole area are considered to be prime drill targets.
