Angkor Gold Provides Mesco Mine Site Update
Box 153, Sexsmith, Alberta, Canada, T0H 3C0 • www.angkorgold.ca
Angkor Gold Provides
Mesco Mine Site Update
Sexsmith, AB, (May 23, 2018): Angkor Gold Corp. (TSXV: ANK and OTC: ANKOF) (“Angkor”
or “the Company”) President J.P. Dau is pleased to provide an update regarding progress
recently observed at the Mesco mine site.
BACKGROUND
In 2013 Angkor sold for $1.8 million US in cash a 12 km2 portion of its Oyadao South Exploration
Licence, known as Phum Syarung, to Mesco Gold (Cambodia) Co., Ltd ( “Mesco”). Angkor
retained a sliding scale Net Smelter Return interest (“NSR” or “the Royalty”) ranging from 2.0%
to 7.5% on any gold production, as well as 7.5% of the value all other metals produced. Angkor’s
only interest in Mesco’s Phum Syarung mine site is the NSR. Environmental approvals were
granted to Mesco on August 8, 2016 and a mining license was issued to Mesco by the Cambodian
Ministry of Mines on September 6, 2016.
RECENT DEVELOPMENTS
Angkor staff visited the Phum Syarung mine site last week to observe progress underground and
to the infrastructure.
“Mesco was granted Cambodia’s first modern mining license in September 2016 and has since
been building out their mining infrastructure,’ said Angkor President J.P. Dau. “Last week, we had
the opportunity to visit the site. Multiple administrative buildings have been completed and are
occupied on site, as well as an on-site assay lab in full operation with the capability to quickly test
not only gold, but also a full suite of other elements - including copper and silver.”
The Angkor team also observed progress underground as well. The headframe has been in place
since early 2017, along with two inclines and a loading shaft. Incline 1 is now approximately 213.0
m in length and has become the main entrance point for Mesco to stage the next steps of
underground development. Horizontal cross-cutting off of incline 1 on multiple levels is planned
by Mesco to join the loading shaft and Incline 2. The overall distance between the loading shaft
at the northern most point and Incline 2 at the southernmost point is approximately 400m.
“Mesco informs us that it has purchased underground mining equipment which has started to
arrive in Cambodia,” said Dau, “with the first of many containers currently waiting for delivery at
customs. This represents a major investment by Mesco and is a very encouraging sign.”
Box 153, Sexsmith, Alberta, Canada, T0H 3C0 • www.angkorgold.ca
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Mesco takes delivery of underground loaders for the Phum Syarung Mine Site
NET SMELTER RETURN LINKED TO GOLD PRICE
Angkor’s Net Smelter Return is linked to the price of gold. Under the agreement with Mesco, the
NSR is a minimum of 2.0% where the gold price is less than US$1000 and increases by 0.25%
for every US$50 that the gold price exceeds US$1000, to a maximum of 7.5%. For all other
minerals the NSR is a fixed 7.5%.
“We are especially encouraged by the recent progress which comes at a time when Thompson
Reuters has predicted the average gold price for 2018 to be $1360/oz,” continued Dau. “With gold
in 2018 at or near its highest annual price for 5 years and our royalty at Mesco on a sliding scale
based on the price of gold, so this would be very good news for us,” he said. “As well, a strong
gold price has also generated significant recent interest in our other properties where gold is the
primary target.”
Dau also cautioned that “due to Mesco being owned and operated by Mesco Steels Limited and
other entities based in India, their results and reporting as to grade and project economics are not
governed by CIM definitions or North American NI 43-101 standards or requirements. They own
Box 153, Sexsmith, Alberta, Canada, T0H 3C0 • www.angkorgold.ca
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the project and conduct any and all
exploration and testing themselves. Our
agreement with Mesco does not give us
access to their data, assays, process or
project economics for verification.”
Under Mesco’s agreement with Angkor,
Mesco is not obligated to provide such data
for verification until and if any future
production commences. Angkor’s only
interest in Mesco’s Phum Syraung project is
as an NSR holder.
CAMBODIAN INVESTMENT AND
ECONOMY
Cambodia’s economy is predicted to grow
this year again at a rate of 7%. As a major
member of the ASEAN group of nations and
with its ‘One Belt, One Road’ policy, China
has drawn a significant amount of capital
investment to Cambodia from foreign
markets across numerous sectors. “The
extractive sector in particular has
experienced recent success,” said Dau. “Kris
Energy has been granted a production
license marking the first oil to be produced
locally, and Angkor’s exploration partner
Renaissance is in the final stages of approval for its open-pit gold Okvau mine south of our Koan
Nheak property.”
“In the 12 years I have lived in Cambodia,” continued Dau, “I have witnessed the country develop
at an astronomical pace with no signs of slowing down in the near future. It is not hard to
understand why companies such as Manulife and National Bank of Canada have decided to
establish their businesses’ presence in Cambodia. As a director of the Canadian Chamber of
Commerce in Cambodia, I have the opportunity to meet the pioneers who are establishing their
businesses here in hopes of capitalising on this tremendous opportunity.”
ABOUT ANGKOR GOLD CORP.
ANGKOR Gold Corp. is a public company listed on the TSX-Venture Exchange and is a leading
mineral explorer in Cambodia, with a large land package and a first-mover advantage building
strong relationships with all levels of government and stakeholders.
Dennis Ouellette, B.Sc, P.Geo., is a member of The Association of Professional Engineers and
Geoscientists of Alberta (APEGA #104257) and a Qualified Person as defined by National
Instrument 43-101 (“NI 43-101”). He is the Company’s VP Exploration and has reviewed and
approved the technical disclosure in this document.
Headframe at Mesco's Phum Syarung Mine Site
Box 153, Sexsmith, Alberta, Canada, T0H 3C0 • www.angkorgold.ca
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On behalf of the Board,
Mike Weeks
Executive Chairman
Angkor Gold Corp.
CONTACT:
Stephen Burega, CEO
Telephone: (647) 515-3734
Email: [email protected]
Website: http://www.angkorgold.ca or follow us on Twitter @AngkorGold.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Certain of the statements made and information contained herein may constitute “forward-looking
information.” In particular references to the private placement and future work programs or
expectations on the quality or results of such work programs are subject to risks associated with
operations on the property, exploration activity generally, equipment limitations and availability,
as well as other risks that we may not be currently aware of. Accordingly, readers are advised not
to place undue reliance on forward-looking information. Except as required under applicable
securities legislation, the Company undertakes no obligation to publicly update or revise forward-
looking information, whether as a result of new information, future events or otherwise.
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