Ghana Now Africas Top GOLD Producer ‘Disruptor’ Technology- Kubi SMD Mining Update Private Placement Announced
GHANA NOW AFRICAS TOP GOLD PRODUCER
‘DISRUPTOR’ TECHNOLOGY- KUBI SMD MINING UPDATE
PRIVATE PLACEMENT ANNOUNCED
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES
FOR IMMEDIATE RELEASE SHARES ISSUED: 57,160,221
Vancouver, British Columbia – June 10 , 2019 – Asante Gold Corporation ( CSE:ASE/
FRANKFURT:1A9) (“Asante” or the "Company") notes that Ghana has overtaken South Africa
as the largest gold producer in Africa, producing some 4.8 Moz in 2018 vs 4.2 Moz in South Africa,
according to Bloomberg1. Ghana’s production is set to increase again with the imminent re-start
of the AngloGold Ashanti Obuasi mine (66 Moz global gold resource) with an annual production
target of +350koz. Our Kubi Gold Mine project is located just 16km south of the Obuasi mine
along the prolific Ashanti Gold Belt.
Asante is continuing to evaluate the new ‘disruptor’ SMD mining technique for application at
Kubi. SMD is a large bore precision drilling method that enables direct mining of narrow deposits.
The SMD method is being developed and commercialized by Anaconda Mining Inc.
(“Anaconda”), in collaboration with Memorial University of Newfoundland and utilizes
technology proven in other industries 2. Anaconda has announced a ’proof of concept’ field trial
at one of their deposits in Newfoundland, targeting to start up in late August/September with the
trial lasting around two months3.
The innovative SMD method has many advantages over conventional narrow underground mining
techniques and appears well suited to the +5g/t Kubi Gold style mineralization 4. Initial research
indicates that:
• SMD is low CAPEX – multiple SMD drills could be contractor leased, no costly
processing plant to build, no crushing, grinding or CIL/cyanide circuit, or tailings dams
required
• No underground development, minimizing permitting and construction time and costs
• Early cash flow from direct on-site recovery of gold from low CAPEX gravity circuit;
tails to be dewatered, sampled, trucked off-site and sold to local processing plants
• Production is scalable – each SMD drill estimated to produce +100 tonnes per day
• No open cuts, pre-stripping or pit backfilling, no villages to move, giving minimal
environmental impact
• Production is from direct drilling of ~2.5m diameter holes, to be backfilled on completion
with cemented waste, and revegetated
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• Environmentally Green - SMD drills would be electric, powered by solar farm with
mains grid storage and draw down
• Low OPEX - initial estimates indicate less than half of conventional underground mining
costs or circa 2g/t gold at current gold prices
• Increased worker safety – no workers underground
Douglas MacQuarrie, President & CEO states, “Asante is excited about the potential for this new
‘disruptor’ technology to transform Kubi from a gold deposit to a gold producer. Like the
invention of hydraulic fracking turned previously uneconomic gas and oil deposits into highly
economic production, so SMD mining has the potential to unlock major value in the narrow,
hard rock mining space. We will continue to closely monitor developments as they occur.”
The Company also announces a private placement to accredited investors (“Private Placement”)
on a best efforts basis, of up to 5,000,000 units at $0.05 per unit (each a “Unit”) for aggregate gross
proceeds of up to $250,000.
Each Unit will consist of one common share of the Co mpany (a “ Common Share”), and one
Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase
one additional Common Share at an exercise price of $0.08 at any time during the 36 months
following the initial closing date. Each Warrant will be subject to forced conversion which comes
into effect once the shares trade at a volume weighted average price of $0.20, for 20 consecutive
trading days. The expiry date of the Warrants will be 30 days from the date of issue of a news
release announcing the forced conversion. The Company is relying on exemptions from the
prospectus requirements and applicable securities law s to issue the shares. Proceeds from the
private placement will be used for general working capital purposes. All securities purchased
under this offering will be subject to a four month and one day hold period.
Directors and officers of the Company may participate in the private placement. Any such
participation would be considered to be a “related party transaction” as defined under Multilateral
Instrument 61-101 (“MI 61-101”). The transaction would be exempt from the formal valuation
and minority shareholder approval requirements of MI 61 -101 as neither the fair market value of
any units issued to or the consideration paid by such persons would not exceed 25% of the
Company’s market capitalization.
On behalf of the Board,
"Douglas R. MacQuarrie"
President and CEO
About Asante Gold Corporation
Asante is continuing to develop its Kubi Gold Min e project towards production , and is exploring its Keyhole,
Fahiakoba and Betenase concessions/options for new discoveries, all adjoining or along strike of major gold mines
near the centre of Ghana’s Golden Triangle. Please see Asante Gold press release dated March 11, 2019 on SMD at:
http://www.asantegold.com/news/asante-gold-explores-new-mining-technology-for-kubi-gold-project-ghana
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1 https://www.bloomberg.com/news/articles/2019-06-09/nation-built-on-gold-loses-its-african-crown-to-rival-ghana
2 https://disruptmining.com/, 2019; and https://www.anacondamining.com/narrow-vein-mining , 2019.
3 https://im-mining.com/tag/inclined-mast-drilling-rig/
4 http://www.asantegold.com/assets/docs/kubi-ni43-101-tech-report.pdf
Scientific and technical information contained in this news release has been reviewed and approved by Douglas R.
MacQuarrie, P.Geo. (B.C.) Geology & Geophysics , the President and CEO of the Company, who is a "qualified
person" under NI 43 -101. 4Kubi Main Zone has a current NI 43 -101 resource estimate, completed by SEMS
Exploration Services Ltd. of Accra, Ghana: Measured Resources 0.66 million tonnes @ 5.30g/t for 112,000 ounces;
Indicated Resources 0.66 million tonnes @ 5.65g/t for 121,000 ounces; and Inferred Resources 0.67 million tonnes
@ 5.31g/t for 115,000 ounces, which is filed on SEDAR. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
This news release may contain forward-looking information and statements concerning, among other things, the size
and the growth of the Company’s mineral resources and the timing of further exploration , the development of the
SMD mining technique, and of the Company’s projects. There can be no assurance that the plans, intentions or
expectations upon which these forward-looking statements and information are based will occur, and are subject to a
variety of risks, uncertainties and assumptions. Some of the factors which could affect future results and could cause
results to differ materially from those expressed in the forward-looking information and statements contained herein
include: commodity and market prices, exploitation and exploration successes, continued availabili ty of capital and
financing and general economic, market, business or governmental conditions. Forward-looking information is based
on the beliefs, estimates and opinions of management at the date the statements are made and are subject to change
without notice. Investors are cautioned that final closing of the Kubi Mining Lease purchase, Betenase and Keyhole
options are dependent on additional governmental renewals, approvals , consents and financings , which though
reasonably expected, may not be ultimately obtained.
For further information please contact:
Douglas MacQuarrie, President and CEO, tel: +1 604-558-1134; E-mail: [email protected]
Doreen Kent, Shareholder Communications, tel: +1 604-948-9450; E-mail: [email protected]
Valentina Gvozdeva, Business Development, E-mail: [email protected]
Florian Riedl-Riedenstein, Director; European Investor Relations, E-mail: [email protected]
Additional information is available on our web site at: www.asantegold.com
Further information on Kubi is available at: http://www.asantegold.com/projects/kubi-gold-mine
LEI Number: 529900F9PV1G9S5YD446
Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the
adequacy or accuracy of this release.