Asante Gold Announces Mining Exploration Permit Issued Kubi Gold Project, Ghana

Asante Gold Corporation (CSE:ASE) announced that Kubi Gold (Barbados) Limited (“Kubi Gold”) has reported to the Company that it has received a Temporary Mining Exploration Operating Permit from the Inspectorate Division of the Minerals Commission of Ghana that allows for the commencement of the construction of the portal and exploration decline at Kubi.
As quoted in the press release:

The Company has the option (the “Option”) to earn up to 100% of Kubi Gold’s interests in the Kubi Mining leases (see our press release dated March 3^rd, 2015). A NI 43-101 resource estimate for the Kubi Main gold deposit was completed in December 2010 by SEMS Exploration Services Ltd. of Accra, Ghana: Measured Resources 0.66 million tonnes at 5.30g/t for 112,000 ounces; Indicated Resources 0.66 million tonnes at 5.65g/t for 121,000 ounces; and Inferred Resources 0.67 million tonnes at 5.31g/t for 115,000 ounces (see the technical report filed by the Company on SEDAR on December 24, 2014, titled “Kubi Gold Project, NI 43-101 Technical Report” and dated October 20, 2014). Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The proposed exploration program is designed to upgrade the resources to mining categories and outline indicated higher grade areas as priority targets for early development. Subject to funding and the closing of the Option, the Company plans to develop Kubi as a custom milling and direct shipping operation as it is located in the centre of major mining and milling infrastructure.
The Kubi Gold operating permit is based on the application it filed detailing its plan for a 4m x 4.5m exploration decline at -15% grade on the Kubi Main Deposit. Kubi Gold proposes to drive crosscuts and exploration “ore” drives on three levels, the 60m, 120m, and 180m levels, to allow for a program of definition and resource upgrade drilling and to obtain a bulk sample for test milling.
The proposed 1,100m long decline from the 30m level on the east wall of the back-filled Kubi pit to a sump just below the 180m level presently has 26 diamond drill stations, on 17 sections 25m apart, planned to carry out delineation and exploration drilling. An Obuasi based mining contractor, Mining and Building Contractors Limited (“MBC”), has completed the preliminary portal and decline design and been engaged to carry out the mining and surface infrastructure.
Total development planned is approximately 2,100m, including 1,502m of decline and associated mucking bays, safety bays, parking bays, electrical cubbies and drill stations; 283m of crosscut on three levels from the decline to the mineralization; and 315m of level drifts along mineralization. 314 metres of raises are also planned: 113m of internal development 2.4m x 2.4m raises and 201 metres of 3m x 3m exhaust raise and manway. A 3D view of the planned workings is available at: https://www.asantegold.com/assets/img/KubiGoldProposedDecline.pdf.
Previous drilling indicates an average true width of 2.1m for the Kubi gold mineralization, suggesting that the 315m of targeted “ore” drives by 3m in height should produce a bulk sample of approximately 5,500 tonnes. In addition, 13,500m of NQ diamond drill holes from underground stations off the decline are planned, in 120 drill holes. Geotechnical holes will be drilled to determine safe mining panel sizes, pillar requirements, the nature of the hanging wall, and the suitability of the chosen sites for the portal, vent raise collar, and crosscuts across the Tarkwaian contact from the footwall decline through to the Kubi Main mineralization.
An environmental sampling and measurements program to update the extensive historical baseline sampling results from the previous surface mining program completed by AngloGold Ashanti (and its predecessor Ashanti Goldfields) is proposed. Infrastructure to support the exploration project will include an upgrade to the access road, perimeter fencing, diesel generated power, offices and change house with lamp room, water management and waste management facilities. An 11kv line may be extended from Kubi junction, a 500 kva transformer installed for the project, and a 200 kva transformer installed at Kubi Kwanto in support of the local villages under the Rural Electrification Programme. Accommodation is planned in Dunkwa, 5km south of Kubi junction, and in Obuasi.

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