An Institutional Approach to Advanced Gold Exploration

Transcription

1 An Institutional Approach to Advanced Gold Exploration APRIL

2 Forward Looking Statement Except for the statements of historical fact contained herein, the information presented on this website and the information incorporated by reference herein, constitutes forward looking information within the meaning of applicable Canadian securities laws concerning the business, operations and financial performance and condition of Ashanti Gold Corp. ( the Company ). All statements, except for statements of historical fact, that address activities, events or developments that management of the Company expects or anticipates will or may occur in the future including such things as future capital expenditures (including the amount and nature thereof), business strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of the business and operations, plans and references to the future success of the Company, and such other matters, are forward looking statements. Often, but not always, forward looking information can be identified by words such as pro forma, plans, expects, may, should, budget, scheduled, estimates, forecasts, intends, anticipates, believes, potential or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward looking information. Such risks and other factors include, among others, operating and technical difficulties in connection with mining development, actual results of exploration activities, estimation or realization of mineral reserves and mineral resources, the timing and amount of estimated future production, costs of production, capital expenditures, the costs and timing of the development of new deposits, the availability of a sufficient supply of water and other materials, requirements for additional capital, future prices of metal, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, possible variations in ore grade or recovery rates, possible failures of plants, equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, changes in laws, regulations and policies affecting mining operations, hedging practices, currency fluctuations, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation, environmental issues and liabilities, risks related to joint venture operations, risks related to the integration of acquisitions, as well as risks and uncertainties discussed in the latest Management Discussion and Analysis Reports and Financial Statements (refer to the Financial Section on the Company s website under Investors, and company filings on Shareholders are cautioned not to place undue reliance on forward looking information. The Company undertakes no obligation to update any of the forward looking information on this website or incorporated by reference herein, except as otherwise required by law. Historical Data: The historical estimates of resources at Anumso and Kossanto East were developed by Goldplat PLC and Alecto Minerals PLC respectively; the Company has been advised that such estimates are compliant with JORC rules of disclosure and are considered relevant by the Company, however the Company has not independently verified such data, the Company s qualified person has not done sufficient work to classify the historical estimates as current mineral resources, the Company is not treating the historical estimates as current mineral resources, and readers are cautioned not to place undue reliance thereon. Historic drill data presented in this presentation is considered relevant by the Company, however the Company has not independently verified such data, and readers are cautioned not to place undue reliance thereon. 2

3 What is Ashanti Gold Ashanti Gold is a company designed to benefit from a specific emerging trend in the gold mining industry: West Africa is a major gold production growth area Major gold miners are increasing their focus and capital spend in West Africa..but There is a dearth of gold projects in the region needed to maintain status quo, let alone production growth Ashanti Gold has three projects to capitalize on gold opportunities in West Africa: Kossanto East Project (Mali): Ashanti s flagship project is in a prolific Kenieba Inlier shear zone with potential to be similar to other major gold deposits in the region (Randgold, IAMGold, AngloGold Ashanti, Teranga and Acacia) Ashanti Belt Projects (Ghana): Opportunity to capitalize on known geological structures adjacent to Newmont s Akyem Mine as part of the Ashanti shear zone Anumso Project (Ghana): Opportunity for a significant gold deposit with ore very similar to successful mines to the south in the same geological structure 3

4 Strong Leadership Tim McCutcheon CEO and Director Mr. McCutcheon is a capital markets professional and mining corporate manager with over 20 years of international business experience. He worked in multiple financial institutions such as Bear Stearns, Aton Capital and Pioneer Investments as an award-winning metals and mining sector analyst and as an investment banker. At Aton Capital he was a pioneer in analyst coverage of gold companies in the Eurasian area, introducing these equities to Eurasia-focused funds and institutions. Coverage included Bema Gold, High River Gold, Centerra, Polyus, Polymetal, and multiple juniors. Co-founder of DBM Capital a boutique mining resource merchant bank with AUM of $130M and $100M completed M&A before being sold to a UK-based hedge fund in Transactions include purchase of Avlayakan gold asset from Silver Bear Resources (led by Randall Oliphant), financing Fortress Minerals (Lundin company), sale of the Goltsovoye silver deposit to Polymetal, purchase of the Souker nickel deposit by Centrasia Mining, financing High River Gold, funding B2Gold pre-ipo. DBM Capital s fund, called Sayan Investments, was a top performing European fund. Past corporate experience includes Director of Consolidated Puma Minerals (Bema Gold subsidiary), Advisory Director of Centrasia Mining, CEO and Director of Ovoca Gold PLC, CEO and Director of Global Minerals, CEO and Director of Abzu Gold (Kinross JV partner in Ghana). Mr. McCutcheon attended Columbia University, where he received his BA and MBA. 4

5 Board of Directors and Team Paul Klipfel COO, Head Geologist Dr. Klipfel has 35 years of gold exploration leadership and project development experience in North America, South America, Australia, South Pacific, Africa, and Asia working for major and junior explorers. He has been a contributor to the discovery process on several major gold deposits including Las Cristinas, Venezuela (>12 Moz); Musselwhite, Ontario, Canada (>5 Moz); Esaase, Ghana (>5 Moz); Livengood, Alaska, USA (>10 Moz). Dr. Klipfel was President of Abzu Gold from , working in Ghana on the development of gold properties, including in the Ashanti belt area. Dr. Klipfel has graduate degrees from the Colorado School of Mines and from the University of Idaho, as well as a doctorate degree from the Colorado School of Mines. Ann Fehr CFO Ms. Fehr is a chartered professional accountant with over 15 years experience in senior management and has worked in the mining sector since Jacqueline Collins Corporate Secretary Ms. Collins is a Securities/Corporate Finance Paralegal with over 25 years' experience as a legal administrator, corporate secretary and paralegal at both independent and national law firms, and with public resource companies. Grant Sinitsin Director Mr. Sinitsin serves as the Head of the Moscow Natural Resource Advisory Group for Garber, Hannam & Partners (formerly Fleming Family & Partners (Russia) Limited). Mr. Sinitsin has 25 years of experience in the resource and investment banking industries, including 20 years based in Moscow. Over his career, he has been a Senior Equity Analyst for Fleming UCB where he covered the Russian metals and mining sector. He serves as a Non-Executive Director of Lubel Coal Company Ltd. Mr. Sinitsin holds a Bachelor of Commerce degree from the University of British Columbia and is a Chartered Financial Analyst. Jonathan Henry Director Mr. Henry has been President and Chief Executive Officer of TSX-listed Gabriel Resources Ltd. since June Between 1994 and 2010 he worked with Avocet Mining PLC ( Avocet ), a UK based and listed gold producer and now a West African gold mining and exploration company operating the Inata Gold Mine in Burkina Faso. At Avocet he worked in a variety of senior management capacities including Finance Director and Chief Executive Officer from During his tenure at Avocet he oversaw successful exploration, feasibility study, mine development and capital funding activities, plus a number of acquisitions and disposals of mine assets in Portugal, Peru, USA, Tajikistan, Burkina Faso, Malaysia and Indonesia. Avocet s activities during Mr. Henry s tenure as CEO included the company s revised focus on gold mining and exploration in West Africa. Mr. Henry has an honours degree in Natural Sciences from Trinity College, Dublin. He is based in London, UK. 5

6 Annual gold output (t) West Africa Output growth West Africa is a major gold production growth region, driven by government liberalization of the mining sector, world class geology, wellestablished mining culture and industry support, adequate infrastructure to facilitate growth. West Africa: major gold region Ghana Mali Burkina Faso Ivory Coast Guinea Senegal Gold production from in West Africa had a CAGR of 6.2%, while the global growth rate for the same period was 3.1%. Source: USGS and World Gold Council 6

7 Scant pipeline, increasing capex Consolidation of gold assets in West Africa driven by mid-tier companies, such as Endeavour, Perseus, Teranga and B2Gold. Lack of scale, poor M&A history and early stage of available targets has deterred major gold miners from acquisitions.for now. Majors focused on organic growth, but large capital commitment (recent announcements): = Ahafo expansion to $380m = Tasiast expansion $590m = Damang expansion $100m = Siguiri expansion $400m Notable public company buyouts in past four years; total value +$1bn 7

8 st Full Year of Operations Ashanti Gold was very active in 2017, laying the groundwork for continuing advancement of the company and its properties in Corporate activity: Raised $4.2M in equity Option agreement with Kinross in Ghana activated Formation of Advisory Board with William Pincus and Henk Van Alphen In Mali: Constructed on-site camp for crew and staff Drilled 6000m at the Kossanto East project Confirmed past results, highlight results include: g/t (including g/t), g/t, g/t (including g/t), g/t (including g/t), g/t (including g/t), g/t, g/t, g/t (including g/t) Acquired 100% of project In Ghana: Drilled 2000m at the Anumso project Confirmed past results, highlight results include: 1.46 g/t, g/t, g/t, g/t, g/t Soil sample program identified new targets Metallurgical test work: over 90% gold recovery, first 70% gold recovery from gravitation, remaining via cyanide process 8

9 Near-term major catalyst Ashanti anticipates after completing an additional drill campaign on the Kossanto East Project, the database of work done on the project by both historical operators and Ashanti will be robust and serve as a strong anchor for a maiden NI report on the project. Prior to Ashanti s purchase of the Project in August 2017, 91 holes were drilled for a total of 10,119m of Diamond Drilling (DD) and Reverse Circulation drilling (RC) in Ashanti completed 53 holes for a total of 6,073m of RC between June July For its second drill campaign at Kossanto East, the Company intends to drill approximately 60 holes for a total of 10,000m of both DD and RC. Peer-group companies in West Africa are listed in the table below: Mcap, CAD$M Gold resource oz, MI&I Grade, g/t Orezone Resources 125 4,442, West Africa Resources 268 2,171, Cardinal Resources 190 7,400, Pinecrest Resources 19 1,078, Ashanti Gold 8 Source: Company reports, Yahoo Finance 9

10 Project Diversity Maximum Exposure Ashanti Gold s asset portfolio was designed to capitalize on three different types of exposure for gold mining investors. KOSSANTO EAST: Located in Mali, fast growing gold producer-country, this flagship project has the potential to be on par with its major peers in the region. Shear-zone hosted gold system, similar geology to Loulo, Randgold s major asset which is 40km to the south. Ashanti has acquired 100% of the project. ANUMSO: Located in Ghana, West Africa s largest gold producer-country, the Project is a solid entry into an asset class (conglomerate-hosted gold deposits) that is very successful (Gold Fields Tarkwa - 560,000 oz Au/yr, AngloGoldAshanti s Iduapriem 200,000 oz Au/yr). Ashanti is partnered with Goldplat PLC, a positive cash flow gold producer listed in London/AIM. Ashanti has a two-stage earn-in process, 1 st stage for 51% by spending $1.5M by Oct. 31, 2018, 2 nd stage is additional 24% for $1.5M by Oct. 31, ASHANTI BELT: Located in Ghana, West Africa s largest gold producer-country, the Project is a special sits unique to the Ashanti Gold team due to past management knowledge of the Project. Additionally, special synergy with adjacent Akyem Mine (operated by Newmont, annual production over 400,000 oz Au). Shear-zone hosted gold project, same material as at Akyem. Ashanti has earn-in with Kinross, 100% over 2 years by spending $1M, Kinross keeps 2% NSR. 10

11 Kossanto East (Mali) Right Neighborhood Highlights: The western edge of Mali is highly goldendowed The Kenieba Inlier Shear Zone and the Main Transcurrent Shear Zone intersect on Ashanti s project grounds, major geological structures for gold mineralization Over the last twenty years approximately 40M ounces of gold has been discovered in proximity to these structures Neighbors: Endeavour Mining (Tabakoto): TSE:EDV, MCap: CA$2.4B Randgold (Loulo): NASDAQ:GOLD, MCap: US$8.7B IAMGold (Sadiola): NYSE:IAG, MCap: US$2.6B AngloGold Ashanti (Sadiola): NYSE:AU, MCap: US$3.9B Teranga (Sabodala): TSE:TGZ, MCap: CAD$280M B2Gold (Fekola): TSE:BTO, MCap: CA$3.6B These majors actively working on gold exploration and the area is a top priority for corporate growth 11

12 Kossanto East Major Project Unfolding km 2 concession in prolific Kenieba Inlier, prolific shear zone in Mali and home to major gold mines The Project is wedged in-between projects operated by Randgold and Acacia, two major gold miners Kossanto East has six known pods of mineralization. Two partially explored by past operator Strong potential to be a significant gold ore body cluster similar to neighboring gold deposits such as Loulo and Sadiola Outstanding drill results (see Annex) Ashanti will extend out and add data points to the existing data base, prepare for maiden NI resource report As of now, two zones of gold mineralization (Gourbassi East and Gourbassi West) combined strike length of 2.3km, 50m to 100m wide, mineralization intercepted down to 125m beneath the ground surface Altered, silicified, Kossanto East core with veins and multigram Au Ashanti owns 100% of the Project 12

13 Kossanto East Major Project Unfolding Two main mineralization zones (Gourbassi East and West). Note anomaly zone north of Gourbassi West, potential to extend strike much further. Berola (anomaly in northeast corner) has one historic drill hole of g/t Au Berola Gourbassi West Gourbassi East Ashanti 2017 hole Historic drill hole Soil sample and RAB gold anomaly 13

14 Kossanto East Flagship Methodical progress, removing risk step by step. Check list: When Status Asset review 4Q2016 Field mapping 1Q2017 Reconnaissance drilling 2Q2017 Camp construction 2Q % acquisition 3Q2017 Target expansion 4Q2017 RC drill hole box Trenching, sampling & results 1Q2018 pending Drilling & results 2Q2018 to do Gold grains panned from site material Metallurgical testing 3Q2017 to do Resource estimate 3Q2018 to do Quartz veining, associated with gold mineralization 14

15 Anumso Project (Ghana) - Solid Pipeline Highlights: The Ashanti greenstone belt, home to multiple large gold deposits Anumso has geology analogous to other successful conglomerate assets such as Tarkwa, Damang and Iduapriem Conglomerate mining projects exhibit extremely low dilution rates and high gold recovery from gravitation alone Historic resource with clear path to advance Neighbors: Newmont (Akyem): NYSE:NEM, MCap: $21.5B AngloGold Ashanti (Obuasi, Iduapriem): NYSE:AU, MCap: US$3.9B Gold Fields (Tarkwa, Damang): NYSE:GFI, MCap: $3.2B Tarkwaian conglomerate drill core from Anumso, Ghana 15

16 Anumso Project 2km of strike in historic JORC resource - 250,000 oz (under JORC 1.25 g/t cutoff 0.5 g/t)* Anumso has 10km of conglomerate strike, only 2km has enough data to calculate historic resource from data 2,000m of RC drilling to verify historic work and create new data points for future NI reports Met test work done to confirm gold recoveries: over 70% recovery via gravitation, average 98% after cyanidation Soil samples identify priority areas along strike to potentially increase mineralize material tonnage Conglomerate targets (including part of 10km known strike) Ashanti task: demonstrate that material present in the historic resource is present along entire 10km of conglomerate strike *See Historical Data Disclaimer on Page 2, also see NI report of 26 August

17 Anumso Project Picking up on past work, advancing asset to critical mass. Check list: When Status Asset review 3Q2016 Field mapping 4Q2017 Reconnaissance drilling 1Q2017 Soil sampling 3Q2017 Metallurgical testing 3Q2017 Target expansion 4Q2017 Trenching, sampling & results 1Q2018 pending Drilling & results 2Q2018 to do Resource estimate 3Q2018 to do Earn-in 51% 3Q2018 to do Colonial-era adit DD drill hole box Drill rig on site 17

18 Ashanti Belt Project (Ghana) Special Sits Highlights: Attractive past preliminary results Adjacent Newmont Akyem mine has many potential operation synergies due to geology and infrastructure Very attractive earn-in terms from Kinross Historic resource with clear path to advance Special Situation: Akyem is nearing end of mine life, strong desire by operator to push back as long as possible closing site In many cases, Project is closer to Akyem mine infrastructure (roads, mills, plant) than remaining Akyem mine plan Opportunity to partner with Newmont to provide feedstock for Akyem mill and change current declining production forecast Production forecast Akyem (oz Au) F 2018F 2019F 473, , , , ,600 Source: Newmont, Credit Suisse 10 km Screenshot of Kwahu Oda geophysical, soil sample and RC drill work Hole Interval (m) Grade (g/t) KYRC KYRC KYRC KYRC KYRC Highlights of 2003 Red Back RC drilling on Kwahu Oda All results start at or near surface 18

19 Ashanti Belt Project Asankare, New Abirem, Kwahu Oda formerly part of Akyem land package before divested in 2003 Geophysical results coincident with gold mineralization on Akyem appear to extend onto the Project Due to corporate turnover of projects (Normandy, Newmont, Red Back, Kinross..) positive results has no follow-up Check list: When Status Asset review 4Q2016 Trigger earn-in option 3Q2017 Complete regulatory documents 1Q2018 pending Soil sampling 3Q2018 to do Trenching, sampling & results 4Q2018 to do Reconnaissance drilling 1Q2019 to do Akyem pit Ghana 19

20 Share Metrics Ashanti Gold (TSXV:AGZ) Share Price CAD$0.20 Market Cap CAD$8.0M Total shares outstanding 39,846,095 Warrants (avg price & avg exp) 10,905,125 ($0.38 & 1.6yrs) Stock Options (avg price & exp) 1,970,000 ($0.32 & 1.5yrs) Major Shareholders Donald Smith Value Fund 14% Specialist mining/gold funds 14% Retail 53% Small cap funds 10% Management & insiders 9% Total fully diluted shares 52,721,220 Investor Highlights CEO leveraging his institutional experience to assemble unparalleled portfolio of projects Assets with historic JORC resources, de-risked geology and significant exploration upside Unique access provides high-quality projects adjacent to world-class mines and natural acquisition/development partners Potential multi-million ounce focus only All information as of 1 February

21 West Hastings Street Vancouver, BC V6E 2K3 Canada Telephone: Website: 21

22 Appendix 22

23 Kossanto East Historic Drill Results Hole From (m) To (m) Interval (m) Au (g/t) Gourbassi East CGM_GRC CGM_TF CGM_TF GDD incl GRC incl GRC incl incl GRC incl incl GRC incl GRC GRC incl GRC GRC incl GRC incl GRC and GR GRD TF TF incl and Hole From (m) To (m) Interval (m) Au (g/t) Gourbassi West GRABL7/ incl GRABL27/ incl GRABL32/ GRABL5/ GRC incl GRC GRC GRC GRC GRC incl GRC and and and GRC incl ML Berola incl FRABL1/ FRABL1/ FRABL4/ FRABL4/ Intervals are intercept widths in drill hole and not true widths. See Historical Data Disclaimer on Page 2 23

24 Kossanto East Drill Results by Ashanti Hole # From (m) To (m) Interval (m)* Au (g/t) Gourbassi East GERC incl GERC GERC GERC incl incl GERC GERC GERC incl incl GERC GERC incl GERC incl Hole # From (m) To (m) Interval (m)* Au (g/t) Gourbassi West GWRC GWRC incl incl incl GWRC GWRC incl incl GWRC incl GWRC incl GWRC GWRC incl GWRC incl incl ** GWRC incl Hole # From (m) To (m) Interval (m)* Au (g/t) Gourbassi West GWRC incl incl *** GWRC incl incl GWRC incl incl incl GWRC incl incl GWRC *Intervals are intercept widths in drill hole and not true widths. **Average of 37.1, 23.7, 29.6 g/t Au ***One sample interval missing 24

25 Kossanto East Cross Sections Altered, silicified, Gourbassi East core with veins and multi-gram Au 25

26 Kossanto East Cross Sections, cont. Gourbassi West Drill Hole and Mineralization Map 26

27 Kossanto East Cross Sections, cont. Gourbassi West Drill Hole and Mineralization Map Drill results support interpretation of a new northeasttrending mineralized zone The host volcanic breccia is part of an extensive felsic volcanic complex inferred to be near the top of the local greenstone belt sequence = the most common position for large gold deposits to occur Key structural controls appear to parallel the Senegal-Mali and Main Transcurrent Shear Zones as evidenced by the alignment of mineralization parallel to both features. 27

28 Anumso Drilling Strata in Results Hole From (m) To (m) Interval* (m) Au (g/t) AGZ RC incl incl AGZ RC incl incl incl incl AGZ RC incl incl AGZ RC Ashanti drill result highlights Hole From (m) To (m) Interval (m) Au (g/t) AGDD AGDD AGDD AGDD AGD AGDD Incl Incl BAEDD BAEDD BAEDD Incl Incl BAEDD Select intercepts from historic drilling 28

29 Anumso New Targets New priority targets identified with soil sample program. Strong anomaly to the southeast of historical drilling Additionally - Met test work started, preliminary results show high Au recoveries on gravity (72%) and bottle roll tests (99%). Figure 2 Figure 3 29

30 Anumso Drill Map Outcrop of quartz-pebble conglomerate strata, Anumso Figure 1. Overview of the northern block of the Anumso Mining License where Ashanti drilled twenty RC holes (green dots) along a portion of exposed Banket conglomerate outlined with the dashed red lines. 30

31 Anumso Highlight Drill Results Figure 2. Detailed view of part of the conglomerate drilled by Ashanti. See Figure 1 for location within the Anumso Mining License. 31