Asante Gold Corporation (CSE: ASE, OTCQB: ASGOF, Forum) is a Canadian junior gold mining company with its operations based in the African nation of Ghana. Formerly known as the Gold Coast, Ghana has a long and rich mining tradition, an experienced work force, and a friendly business climate for mining operations. CEO Douglas MacQuarrie and the rest of the Asante management team have a wealth of experience in Ghana gold mining, and have put that experience to good use in acquiring a portfolio of prospective gold projects.
The Company’s flagship project is building the Kubi Gold Mine. In October 2016; Asante announced that it had brought in a JV partner to fully finance the Kubi Project to production, Chinese-listed company Beijing Fuxing Xiao-Cheng Electronic Technology Stock Co. Ltd (“BXC Company”). Asante retains 50% ownership in the Kubi Project, and has just successfully completed an oversubscribed $1.25 million private placement which was listed on the Stockhouse Dealroom.
Stockhouse recently had the opportunity to ask CEO Douglas MacQuarrie about progress at Kubi as well as other current and future developments for Asante. Further information can be found here.
- For newer investors, please provide readers with some background on the Company.
Asante is focused on gold exploration and development in the world’s ninth largest gold producing nation – Ghana, West Africa.Management is ex-PMI Gold (now owned by Asanko Gold) who founded, acquired and drilled off five million ounces of gold resources at their Obotan gold mine. The Chairman of our BOD is Ned Goodman of International Corona – Hemlo/Barrick gold mine and Dundee Corporation, amongst other major achievements.
- Several members of Asante’s team have an enormous amount of experience in Ghana gold mining, starting with yourself. What is your own history in this nation?
I first travelled to Ghana in 1993 to look for a premium, under-explored gold mining jurisdiction.Ghana, a former British Colony, with a common law legal system, English-speaking and a major gold miner, attracted my attention. It has always been extremely friendly to mining, as gold and cocoa productionare by far the largest contributors to the economy. Being ‘essential’ to the economy is absolutely fundamental for long term, stable operating and investment conditions.
In 1994 I, along with Bob Quartermain, commissioned the first modern airborne magnetic survey covering most of the gold producing areas of southwest Ghana. This survey outlined major previously unknown, deep seated structures that were related to gold mineralization, and which have guided our land targeting in Ghana. Also key to our success in Ghana was, and still is, the involvement of strong local Ghanaian’s in our team such as G.O. Kesse, MSc. Geologist (deceased 2009) who was for 20 years the Director of the Ghana Geological Survey, and former President of the Geological Society of Africa, and the author of more than 50 publications on the geology of Ghana. “G.O.” was known and respected by all in the local mining industry.
In 2000 we were joined by Thomas Ennison, LLB, an erudite London-based barrister and solicitor with deep Ghana roots and former Ghanaian Ambassador to Italy, who returned to Ghana to assist us. By early 2002; we had assembled a suite of more than eight concessions which were vended into the PMI Gold shell for an equity position.During our time at PMI Gold, we grew the company to over twelve concessions including the Kubi mining leases (now controlled by Asante) which we purchased from Nevsun Resources, and the Obotan mining leases which had been “mined out”. This is now the +200,000 oz per year Asanko Gold Mine.
We have been joined by advisor Nana Prah Agyensaim VI, known in private life as W. E. Jonah, the elder brother of Sir Sam Jonah (former President of Ashanti Goldfields). He is currently the Chairman of Perseus Mining (Ghana) and former Member of the Council of State an advisory body to the President of Ghana.Asante went public in Vancouver in 2012 based on just one exploration concession.We have since added the Kubi Mining Leases (subject to final closing late February 2017), two highly prospective option properties at Betenase and Keyhole, and have another eight concessions, well along in the acquisition pipeline.We also recently announced a $19.5 million joint venture with a Beijing based company to develop Kubi to a mine, in return for a 50% equity interest in Kubi and a 30% equity interest in Asante (subject to final closing). Each and every one of these concessions has major discovery potential.
- Bashir Ahmed is the Company’s VP of Production and Development, and another veteran of Ghana gold mining. Could you summarize his previous mining experience?
Bashir has more than 30 years’ experience in underground Gold Mining: in operations, mine planning, management, project management and consultancy services. He worked through positions in supervision and middle management to become Mine Manager in the world-class, AngloGold Ashanti Obuasi mine, producing 1.8 Mt/yr. Bashir managed a workforce of over a1,000, of all ranks, disciplines and functions, including contractors – an annual development budget of over US$100 million. He is a resident of Obuasi, located just 20 minutes from the Kubi Mine development site.
- The Chairman of your Company is a household name in the investment community. Please introduce him to newer investors, and list a few of the credits on his resume.
Ned Goodman is an inductee of the Canadian Mining Hall of Fame - Mr. Goodman’s investment experience spans more than 40 years as a securities analyst, portfolio manager and senior executive, and he has an established reputation as one of Canada's most successful investment counsellors. Among his accomplishments, Mr. Goodman is also the founder and benefactor of the Goodman Institute of Investment Management, a graduate school for investment management at Concordia University and Chancellor of Brock University. Mr. Goodman completed his undergraduate studies in science at McGill University and graduate studies in Business Administration at the University of Toronto. He achieved a Chartered Financial Analyst degree from the University of Virginia in 1967. A doctorate of laws, honoris causa, was conferred upon him by Concordia University in 1997. Mr. Goodman is semi-retired, lives in Toronto and serves on a number of public company boards.
- Because of the long history of gold mining in Ghana, some gold mining companies believe that there are no longer prospective opportunities in this nation. Why do you disagree with that assessment?
Much of the main Ghanaian gold belts are covered by extensive tropical vegetation and deep weathering.Most of the known mines were traditionally located on hills, where they could easily be discovered, and spanned nearly 1,000 years.In addition, most of the rock formations that host the mines have been tilted to near vertical and have deep roots – several known to extend to beyond 2 km in depth. Ghana’s deep mining potential has barely been scratched, and will be the source of an ever-increasing volume of ore.Deep sensing geophysical techniques will also outline many completely unknown major gold deposits.
- The Company negotiated a pivotal joint venture agreement with China-based BXC Company, in October 2016, which will allow Asante to advance its Kubi Gold Mine Project to production. What is the time horizon to move the Kubi Project to production, and what work has been completed to date?
We anticipate closing the BXC – Kubi joint venture in late February. Based on that timeline; surface works, geo technical drilling, portal construction and decline development to the -180 metre level would commence. Preliminary designs for the underground work have been completed. Based on a successful underground drilling program to upgrade current resources to reserves and completion of a final mining plan and permits, initial stope development work is expected to occur 12 months from commencement, with full production targeted at 500 tpd in 18 months. Our current plan is to process future production utilizing direct shipping and toll milling in order to decrease capital costs and time to production.
- Asante Gold has a portfolio of other prospective exploration land. Could you provide investors with a summary of these assets?
Asante currently has four active exploration projects besides the Kubi near-term development JV: the Keyhole and Betenase Options, the Fahiakoba concession and the Ashanti II project.Keyhole is a very exciting option on two small concessions located at the intersection of major regional (+100 km lengths) geological structures that are regionally associated with producing gold properties.Locally, intensive artisanal alluvial gold mining over a distance of some 6km has occurred over the last 30 years in the vicinity of Keyhole.Historical workings with reported grades to 25 g/t gold over 8 m widths, and recent survey work have outlined initial drill targets and a 1,200 metre initial drill program is planned to commence in February.
At Betenase, optioned from Perseus Ghana, initial drilling in late 2015 intersected anomalous gold mineralization associated with wide zones of alteration in preliminary outlined geophysical IP targets. Further IP surveying to cover a larger target zone including areas of local alluvial mining, and follow up drilling is planned for 2017.
At Fahiakoba (our initial listing property) which adjoins to the northeast of the active Perseus Edikan mine, two phases of drilling have intersected values to 289.5 g/t gold over 0.5 m width. One major mineralized trend which cuts through the eastern part of the concession requires further IP survey work and drilling.
The Ashanti II concessions are currently in the process of acquisition which is expected to be completed in mid-2017. These concessions form a continuous package surrounding the Keyhole project and cover two major mineralized trends that stretch from 15 to 50 km southwest of the Asanko Gold Mine. They have been actively explored by many companies over the years with numerous target zones already defined for follow up.
- What are Asante’s immediate operational priorities once the funding is in place?
On closing of the Kubi Gold JV – surface works and portal construction and additional permitting will begin.Additional drilling and ground geophysical surveying at Keyhole and Betenase are also planned to commence.
For More information on Asante Gold please note below is a recent interview with CEO Douglas MacQuarrie which touches on its recent successful C$1.25m private placement and how the proceeds will help fund exploration of the Kubi project in Ghana.
FULL DISCLOSURE: Asante Gold Corporation is a paid client of Stockhouse Publishing.