Asante Gold Corporation
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Asante Gold Corporation

April 24, 2017 09:30 ET

Asante Gold Intersects 13.1 gpt Gold Over 3.0m at Keyhole Option, Ghana

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 24, 2017) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Asante Gold Corporation (CSE:ASE)(CSE:ASE.CN)(FRANKFURT:1A9)(OTC:ASGOF) ("Asante" or the "Company") has received final assay results from the first drilling program in the historical MEM shaft/showing area on our Keyhole Option property, Asankrangwa gold belt, Ghana.

The program was designed as the first modern drill test of bedrock for gold mineralization in a structurally favourable area where extensive alluvial mining has been ongoing over the last 30 years.

The program consisted of 1,151m of diamond drilling in twelve holes, surface sampling and ground geophysics and has confirmed that the MEM showing is part of a northeast trending gold mineralized shear that is in excess of 250m in length, 120m in depth, and is open to extension in all directions.

Based on the success of this initial program, an expanded program to further test and extend the zone and outline other potential mineralized zones is being planned.

Five holes were spotted in the MEM area where recent grab samples of sulfidic and vuggy quartz reef dump material from artisanal shafts averaged 15.5g/t gold, and historical underground sampling results to 8m widths grading 25g/t gold were reported by Junner, Gold Coast Geological Survey, 1933.

Drillhole MEM17-001B was spotted to test directly under the old MEM shaft area and intersected 13.12g/t gold over 3.0m at a down hole depth of 139m. The intersection was vertically ~120m below the showing in a graphitic shear zone hosted in meta-greywacke/argillite, with quartz, sulfide mineralization and with minor visible gold noted. Core orientation data suggest that the shear zone is sub-parallel to the regional foliation at azimuth 030 to 046 degrees with a moderate to steep dip to the northwest. A photo of the mineralization is at: http://www.asantegold.com/assets/docs/pdf/nr/MEM17-001b 140.3m.pdf.

Drillhole MEM17-002 was drilled 85m to the southwest of the MEM showing, and intersected two shear zones grading 3.43g/t over 3.0m and 3.46g/t over 1.5m at down hole depths of 64.5 and 75.0m respectively. Drillhole MEM17-010B tested the structure 60m to the northeast of the MEM showing intersecting a narrow shear zone that graded 2.0g/t gold over 0.3m. Two of the five drillholes had to be abandoned - one in heavily fractured ground/shear zone and the other in brecciated quartz/greywacke and mud filled underground workings.

In addition, twenty five surface grab/channel samples over ~1.0m widths were taken in recently exposed saprolite in an area ~120m to the northeast of the MEM showing, with the best section grading 1.89g/t over 3m.

The balance of the drillholes were collared to test anomalous IP and interpreted structural targets from a recent ground geophysical orientation program. Regional scale-fracture controlled pyrite mineralization was intersected, accounting for many of the noted IP responses. Areas with interpreted high resistivities appear related to thicker sections of greywacke interbedded with the argillaceous phyllite host.

A map showing the MEM area drill collars and significant gold intersections is available at: http://www.asantegold.com/assets/docs/pdf/nr/MEMdrillPlan.pdf. Recent pictures from the drill program are available at: http://www.asantegold.com/projects/keyhole-option.

The Keyhole Option covers a 6km long section of the Ankobra River and is strategically located at the intersection of three major regional gold mineralized trends:

  • the Asankrangwa Gold Belt which hosts ~11 million ounces* of gold resources at the Asanko Gold Mine (formerly known as PMI Gold Corporation's Obotan Mine), and Esaase gold projects located 36km and 60km respectively to the northeast;

  • a major continental scale basement structure noted on regional aeromagnetic surveys which is spatially related to the 66 million ounce* AngloGold Ashanti Obuasi Mine and the 7.6 million ounce* Newmont Akyem Mine, located 57km and 130km to the east northeast; and

  • the north trending Ankobra River lineament and its extensions which connects 90km to the south the +60 million ounces total resource* gold mines at Bogosu, Prestea and Tarkwa operated by GoldenStar, AngloGold Ashanti, and Goldfields, with Newmont's 15.3 million ounce* Ahafo Mine 100km to the north. (*past production plus current resources).

Keyhole, under option from Sikasante Mining Company Limited, adjoins Asante's Ashanti II Gold project: http://www.asantegold.com/news/asante-gold-acquires-kubi-mining-leases-and-eight-prospecting-licenses-in-ghana and map at http://www.asantegold.com/assets/img/goldentristruckeyhole.jpg. Asante can earn up to 100% in the Keyhole Gold Project by completing $500,000 in work over four years, issuing 1.25 million shares, and reserving for Sikasante a 2% net smelter return royalty.

Douglas MacQuarrie, President & CEO commented: "These drill results are highly encouraging and reinforce our confidence in the potential for finding further gold mineralization at Keyhole. An expanded program will look at extending the mineralized zones as well as test further areas within the property with gold potential."

On behalf of the Board,

"Douglas R. MacQuarrie"

President and CEO

Significant assays >=0.50g/t Au are noted in the table below:

Drill Hole From (metres) To (metres) Intercept (metres) Estimated True Width (metres) Wt. Average
g/t Au, uncut
MEM17-001 42.00 43.00 1.00 NA 0.76
MEM17-001B 40.50 42.00 1.50 NA 0.79
137.00 138.00 1.00 NA 0.50
139.00 140.00 1.00 NA 0.62
140.00 141.00 1.00 NA 27.50
141.00 142.00 1.00 NA 11.25
MEM17-002 64.50 67.50 3.00 NA 3.43
75.00 76.50 1.50 NA 3.46
MEM17-006 43.50 43.95 0.45 NA 0.65
MEM17-010 58.00 58.50 0.50 NA 0.84
MEM17-010B 84.20 84.50 0.30 NA 1.99
84.50 85.50 1.00 NA 0.65
Table One: Significant Drill Hole Assay Results
Drill Hole WGS84E WGS84N Dip (deg) Azimuth (deg) Length (m)
MEM17-001 588272 672281 -45 315 45
MEM17-001B 588272 672278 -60 315 156
MEM17-002 588157 672298 -50 153 110
MEM17-003 588470 672380 -60 315 77
MEM17-004 587948 673135 -50 135 113
MEM17-005 588101 672994 -45 135 98
MEM17-006 587871 672938 -45 135 92
MEM17-007 587728 672924 -45 135 94
MEM17-008 587719 672657 -45 135 92
MEM17-009 588060 672622 -45 135 91
MEM17-010 588237 672387 -55 139 75
MEM17-010B 588239 672385 -60 139 108
Table Two: Drill Collar data

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. Field work, core logging and sampling was supervised by Donald G. Allen, MASc. P.Eng. (B.C.) who is a "qualified person" under NI 43-101. HQ and NQ core was logged, sawn and sampled at our core logging facility in Dunkwa, with half core samples sent to ALS Ghana Limited laboratory in Kumasi, and analyzed for gold by fire assay-AA on a 50 gram sample charge. Laboratory QC consisted of inserting both blanks and standards into the sample stream and multiple re-assays of selected anomalous samples. Results from the QC program suggest that the reported results are accurate. Intercept lengths reported are core lengths, as true widths cannot be accurately determined at this stage in the exploration.

About Asante Gold Corporation

Asante and BXC Company Ghana Limited have agreed to form a 50:50 Joint Venture to develop the Kubi Mining Lease in Ghana as a potential near term underground mine; and Asante is exploring the Keyhole, Fahiakoba and Betenase concessions, all adjoining or along strike of major gold mines near the centre of Ghana's Golden Triangle.

Additional information is available on our web site at: www.asantegold.com

This news release contains statements of forward-looking information (or "FLI") including those in respect of future exploration, joint venture, development, permitting and mining at Kubi and the other properties in which the Company has an interest, financings, requisite shareholder approvals and timing for closing of the options. FLI involves risks and uncertainties which could cause actual results to vary from the FLI. The risk factors that could cause actual results to differ materially include: the risk of failure to obtain sufficient financing; the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting drill results and other exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineralization; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; accidents, equipment breakdowns, labor disputes or other unanticipated difficulties with or interruptions in production and operations; the availability and costs of suitable toll milling facilities; fluctuating prices of metals and other commodities; currency fluctuations; the possibility of project cost overruns or unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; regulatory restrictions, including environmental regulatory restrictions and liability and the lack of any assurance that the Company will receive all of the necessary governmental title and approvals to proceed with the development of its projects. The material factors and assumptions on which the FLI is based include the extensive Kubi drilling database and current mineral resource estimate, the previously successful permitting, mining, trucking and milling operations at Kubi, the local availability of skilled labor, plant and machinery, and the positive results from previous metallurgical tests on the Kubi Main deposit mineralization. The Company undertakes no obligation to update FLI except as required by applicable law. Such information represents management's best judgment based on information currently available. Readers are advised not to place undue reliance on FLI.

Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.

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