KUBI GOLD MINE OPTION. Why Gold? Why Kubi? Why Asante? UPDATE January 2016 CSE: ASE FRANKFURT:1A9 1

Transcription

1 KUBI GOLD MINE OPTION Why Gold? Why Kubi? Why Asante? UPDATE January 2016 CSE: ASE FRANKFURT:1A9 1

2 WHY GOLD?. a risk free asset in a World full of risk Money is gold, and nothing else. JP Morgan, Dec 1912 I never thought it wise to sell [gold] because for central banks this is a reserve of safety. Mario Draghi, European Central Bank, Oct 2013 Outright physical gold ownership, without pledges or liens, stored outside of the banking system, is the only form of gold that is true money. Dividing the money supply [M1] by the gold supply [G10 reserves] gives an implied, non-deflationary price for gold, under a gold-backed SDR standard of approximately $9,000 per ounce. The [cause of the] Great Depression is not an argument against gold [standard], it is a cautionary tale of central bank incompetence and the dangers of ignoring markets. James Rickards, The Death of Money,

3 WHY GOLD?. Power/Influence/Safety Since the Pharohs: Gold is Money and Money is Power Door relief, Summer Palace, St. Petersburg Canon, Golden Domes, Kremlin, Moscow 3

4 GOLD. money for 4,000 years. until 1971 when USA said it wasn t??? Clockwise from upper left: Hellenistic Period Medallion ~220 BC*; Ghana Ashanti Golden Eagle Staff circa ~1880; gold bars; Greek Bracelet ~350BC*; Urals Gold Nugget**; Gold Solidus Justinian 1st ~527 AD; (*Altes Museum Berlin **Gold in Urals) 4

5 GOLD. a risk free asset in a World full of. Fiat currency risk Since % to 75% REAL Money Loss in Government Currency relative to gold Government legally and methodically steals wealth through inflation and currency debasement averaging ~4% per year over last two decades 5

6 GOLD. In terms of 2015 US dollars gold peaked at $9,000 in 1980 Nixon closed USD gold convertible window in 1971 unleashing inflation (devaluation) of USD through 1980 and gold soared. Gold is today historically cheap. (ShadowStats.com/ Casey Research) 6

7 GOLD shares. leveraged to bullion Turmoil in World Financial System 1971 Nixon ends gold backed US$ 310% 175% 120% 55% Best entry point to gold shares in 70 years During times of World financial system restructuring (debt relief ) gold shares outperform gold which itself outperforms money 7

8 GOLD. physical trade and pricing moving East as the Yuan rises Financial District Shanghai The China gold link: China s GDP now equals that of the USA China is the world s largest gold producer and is rapidly accumulating additional reserves above and below ground China s currency will/must be a part of new IMF gold backed SDR James Rickard predicts a 2.5% physical gold backing of SDR s, which requires gold US$9,000 oz 8

9 GOLD. the least volatile of all commodities. and money In a volatile world gold has the lowest volatility hence it makes the best backing for World money (data source com/interactive/theperiodic-table-ofcommoditiesreturns-2014/#peri) 9

10 WHY GOLD? Summary Gold bullion has been in a IMF induced low price coma to permit USA QE 1, 2, 3, Abenomics etc. to re-inflate G10 economies. It largely hasn t worked, but instead created stock market and real estate bubbles. and an excellent cheap entry point to buy gold which China, Russia & others continue to capitalize on Gold bullion performs best at the time of worldwide money instability and reset the end of the gold backed US$ in 1971; the end of the petro backed US$ and the rise of the Yuan 2016?? Gold stocks are leveraged to gold bullion. buy gold stocks Gold stocks bottomed in December 2014 and are now beginning to rally near term production, high grade, low CAPEX best upside 10

11 WHY KUBI? Highlights Near term gold production: Ghana #10 gold producer in the World and #2 gold producer in Africa; Stable title, regulatory and taxation regime Kubi Gold Mine projected to produce 30,000 to 40,000 oz Au per year ( to 8 g/t Au) from decline under previous AngloGold Ashanti pit. Two options being evaluated: Toll Milling $US20 million funding required - 14 month timeline to production (subject to satisfactory toll milling arrangement being secured); Build Mill $US45 million 18 month timeline 11

12 WHY KUBI? Highlights. Kubi Mine AngloGold Obuasi Mine NI Mineral Resource (diluted): Measured g/t Au for 112,000 oz gold; Indicated g/t Au for 121,000 oz; and Inferred g/t Au for 115,000 oz. Open to expansion at depth Ore shoots at nearby +60 million oz Obuasi mine outlined to over 2.5 km depth: World Class resource size comes from exceptional dip continuity Drill indicated +8 g/t Au high grade areas to be targeted for early production in underground $US2 million reserve definition drilling program 12

13 KUBI Composite Assay Long Section (looking W) Definition drilling planned from drill bays in decline Objective is to develop high grade stopes >8 g/t Au for early production Conventional shrinkage mining to minimize dilution Lower grade material will be stockpiled for later shipping/processing 13

14 WHY KUBI? Highlights. Design work on portal and exploration decline completed; temporary operating permit to commence construction issued Excellent mining infrastructure, experienced labor available, near the centre of major Obuasi mining camp 20 year renewable mining lease issued, 12 years remaining Large exploration upside on 52 sq km land package 14

15 WHY ASANTE? Tight share structure 27 million shares fully diluted, 43% Management/Insiders 17 million shares reserved for 100% buy out of Kubi Mine Management team responsible for acquisition and growing of +6 million ounces of current under development/producing gold resources in Ghana Mine financing expect ratio 1/3 equity 2/3 debt Kubi Mine - US$30Million in previous exploration/development by BHP/Nevsun/PMI Gold 15

16 SHARE CAPITAL Management controlled and tightly held Shares Issued and outstanding Shares 23,131,000 warrants 2,325,000 incentive options 2,220,000 Fully Diluted 27,676,000 Management Position (FD) 34% Goknet Mining (FD) 9% (note: working capital position presently being funded by shareholder/long term market loans) 16

17 BOARD OF DIRECTORS/MANAGEMENT Douglas R. MacQuarrie, President & CEO P.Geo.BC, B.Sc. Geology Geophysics 41 years mineral exploration experience, last 23 years in West Africa; responsible for discovery and acquisition of significant gold deposits in Canada and in Ghana including, as former CEO of PMI Gold Corporation, the +5 million ounce Asanko (Obotan) mine in Ghana. MD Goknet Mining Company Limited. Resident of Vancouver. Alex Heath, Independent Director Mr. Heath is a graduate of the UBC/Sauder School of Business. Recent experience includes 8 years with Salman Partners Inc. Investment Banking Department, as an analyst, Associate and VP involved in public and private equity offerings, valuations, fairness opinions, and merger and acquisition advisory work. He was the Lead banker on numerous financings and complex M&A transactions. Resident of Vancouver. Bashir Ahmed, Vice President Production & Development, Mining Engineer Former Mine Manager at AngloGold Ashanti Obuasi Mine with 30 years experience in mine operations, planning, production and management. At Obuasi he managed a workforce of over a thousand employees with an annual budget of US$100 million. Resident of Obuasi, Ghana. Florian Riedl-Riedenstein, Independent Director Former Investment Banker in Vienna, Austria and New York; 30 years corporate experience as Director and Officer of Canadian listed companies; 25 years experience in Ghana resource development; responsible for successfully introducing Canadian resource companies to European investors. Resident of Vienna. Philip Gibbs, Chief Financial Officer B.Compt, MBA Mr. Gibbs has extensive knowledge of the financial aspects of Exchange listed exploration and mining companies operating in Africa and South America. Currently the interim CEO of Kilo Goldmines Ltd., and CFO Macusani Yellowcake Inc. Formerly CFO of PMI Gold Corporation. Resident of Toronto. 17

18 CONTACT INFORMATION Canada Suite 206, 595 Howe Street Vancouver, BC, V6C 2T5 Tel: Fax: CAN/US Toll Free: Douglas MacQuarrie, President & CEO Tel: douglas@asantegold.com Ghana No. 1, Yapei Link, Airport Residential Area P.O. Box 9311, Airport, Accra, Ghana Tel: +233 (0) Mobile: +233 (0) Europe Florian Riedl-Riedenstein frram@aon.at Bashir Ahmed, VP Production & Development Tel: bashir@asantegold.com Web: info@asantegold.com CSE Exchange Symbol: ASE Frankfurt Exchange Symbol : 1A9 18

19 DISCLAIMER THE INFORMATION IN THIS POWERPOINT IS PROVIDED FOR INFORMATION PURPOSES ONLY. CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION This presentation contains statements of forward-looking information (or "FLI") including those in respect of future exploration, development, permitting and mining at Kubi and the other properties in which the Company has an interest, financings, operation of the joint venture and timing for exchange approval and closing. 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; 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 and/or exchange 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 primary ore. 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. Other information Where we say "we", "us", "our", the "Company", or Asante" in this presentation, we mean Asante Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable. The technical information contained in this presentation has been prepared under the supervision of and verified by Douglas R. MacQuarrie, the President and a Director of the Company who is a Qualified Person within the meaning of National Instrument ( NI ). Certain of the directors and officers of Asante Gold Corporation also act as Directors or Officers of other companies, and therefore may not apply 100% of their time to the business of Asante Gold Corporation. Kubi Mineral Resource Estimate at the Kubi Main Deposit, Ghana, are based on a resource estimate that has been prepared by SEMS Exploration Services Ltd., of Accra, Ghana, and which is filed on SEDAR. For the purposes of this presentation it is noted that mineral resources that are not mineral reserves do not have demonstrated economic viability. Africa map courtesy 19

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