- 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 from preliminary discovery drilling and geophysical discoveries 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.
- 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);
- Experienced Management: headed by former CEO PMI Gold (acquired and defined 5Moz Obotan deposit – now Galiano Gold (formerly Asanko Gold/Keegan Resources; now circa 220koz per year gold mine); VP Development is a former Mine Manager for AngloGold Ashanti Obuasi Mine; management is highly invested in the project, locally connected;
- 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 Green Mining, circa 45,000 oz Au per year underground producer (subject to financing);
- Currently reviewing two options: a conventional 4m x5m decline under previously mined pits with direct shipping and custom milling @500 – 650 tpd. Preliminary design work on portal and exploration decline completed; and or a new “disruptor” surface direct mining technique which cuts a rectangular slot from surface to -150m depth, with cuttings pumped direct to surface in a water slurry and directly into crushing, grinding and gravity gold recovery. The technique has been developed over 20 years and appears well suited to the near vertical and average 2m wide +5 g/t Kubi Gold style mineralization. Further testing to determine production rates will be done once additional mineralized core is available.