Asanko Gold Inc. (TSX:AKG)(NYSE MKT:AKG) has announced “highly encouraging results” from the new exploration target Akwasiso, which is located approximately four kilometers from the processing facility at the Asanko Gold Mine (AGM) in Ghana.
The drilling programme at Akwasiso forms part of the company’s near-mine exploration strategy to source additional ore resources that will utilise the excess capacity in the processing plant during 2017 and 2018 until Phase 2A is built and commissioned.
Akwasiso lies on the Nkran shear corridor which hosts the AGM’s main pit, Nkran, as well as the Nkran Extension and Dynamite Hill satellite deposits.
A 10,000m drilling programme has been undertaken to validate the geology and grade continuity of at-surface mineralised oxide zones defined by a previous operator. In addition to confirming this historical work, significant mineralisation has now been discovered below and on the western flank of the previous drilling.
Peter Breese, President and CEO, commented: “We are very excited about the potential of Akwasiso, which is displaying similar geological features and mineralisation to the Nkran deposit, our main resource. The first set of results show the potential to be even more significant than previous near-mine discoveries at the Adubiaso and Nkran Extensions. With the mineralisation still open at depth and along strike, we will plan to initiate a further drilling campaign and prepare a maiden Mineral Resource Estimate.”
The Akwasiso target is situated immediately north-east of the Nkran Extension deposit and the Tailings Storage Facility. The target sits on the company’s existing Abriem mining lease, but until recently had been designated as ‘small mining concessions’ and owned by small-scale alluvial miners. The company acquired the concessions earlier this year, which had been previously explored by a prior operator.
During 1997 – 2000, 183 diamond and reverse circulation holes were drilled on the Akwasiso target, although no compliant mineral resources were estimated. According to drilling logs and reports, the total amount of known historic drilling was approximately 11,600m with numerous mineralised high-grade intercepts. The drilling was limited to a depth of approximately 100m.
In May 2016, the company began a drilling programme on the target with the objective of confirming and validating the previous drilling, as well as exploring the potential of the target below the previous shallow drilling. The program consisted of 10,000m of reverse circulation and diamond drilling with assay results mostly still pending. Visual inspection and logging of the current program’s core shows similarities of the mineralisation style to Nkran and other satellite deposits, with intrusive granite in a mixed sedimentary package, with altered and mineralised sandstone units containing silicification, sulphides and quartz veining. Visual gold was observed in several intercepts.
Mineralisation occurs in three zones identified to date: the Western shear zone, a Central sandstone and granite contact zone, and an Eastern granite contact zone. Further drilling is planned which will test all three zones and mineralization is still open at depth and along strike. An initial Mineral Resource estimate is expected to be published in Q4 2016.
Asanko is being developed in phases. Phase 1 commenced gold production in January 2016 and declared commercial production on April 1, 2016. Ramp-up to steady state production of 190,000 ounces per annum was achieved in Q2 2016.
Source: Ghana/AccraFM.com
