Kubi Gold Joint Venture

HIGHLIGHTS: Development Stage Project : Near Term Production; Low Capital - High Grades

  • Kubi Gold Mine being developed as potential near term ~ 35,000 oz Au per year producer from a decline under previously mined pits, subject to successful completion of resource to reserve upgrade drilling program and funding
  • Experienced Management: headed by former CEO PMI Gold (acquired and defined 5Moz Obotan deposit – now the Asanko Gold mine); VP Development is former Mine Manger for AngloGold Obuasi; highly invested in project, locally connected
  • Excellent nearby mining infrastructure; current plan is to use toll milling and direct shipping to minimize capital and maximize returns
  • Current NI 43-101 Mineral Resource: Measured 0.66 million tonnes @ 5.30 g/t Au for 112,000 oz; Indicated 0.66 million tonnes @ 5.65 g/t Au for 121,000 oz; and Inferred 0.67 million tonnes @ 5.31 g/t Au for 115,000 oz - filed on SEDAR
  • +8 g/t Au high grade areas indicated from extensive previous drilling, to be subject of a proposed $US1.5M underground resource to reserve definition drill program
  • Good potential to increase gold resources at depths below 400 metres – indications of grade increasing with depth; ore shoots at nearby Obuasi mine property outlined to over 2.5 km depth
  • Preliminary design work on portal and exploration decline completed
  • Temporary Mining exploration operating permit to commence portal and decline issued
  • Located in Ghana, West Africa: #9 gold producer in the World and #2 gold producer in Africa; Stable title, regulatory and taxation history
  • 20 year renewable mining lease issued, 10 years remaining
  • Large exploration upside from initial drillhole discoveries elsewhere on Property

Kubi Location - Obuasi Area, Geology

INTRODUCTION

Kubi Gold (Barbados) Limited(“KGBL”) owns 100% of the Kubi Mining Leases in south west Ghana, located immediately south of AngloGold Ashanti’s Obuasi mine (66 million ounce pre-mining resource) and 25 km east of Perseus Mining Limited’s 6.6 million ounce Edikan Gold Mine.

Asante Gold Corporation (“Asante”) is a Canadian public company listed on the CSE Exchange and trades under the symbol ‘ASE’. Asante has reached agreement with Goknet Mining Company Limited of Accra, Ghana (“Goknet” owns 100% of the shares of KGBL) to earn up to 100% of Goknet’s interest in Kubi and in up to eight prospecting licenses which Goknet may acquire from a third party (pending and subject to final transfers and all Governmental approvals). Two of these licenses adjoin Kubi to the west; and six of the licenses are located on the Asankrangwa gold belt and collectively the six are referred to as the Ashanti II Gold Project. Goknet, a private Ghana corporation, acquired its interest in KGBL and the rights to the eight prospecting licenses in September 2014.

To purchase Kubi, Asante has agreed to issue Goknet seven million shares in it's capital stock and deliver 8,000 ounces of gold from future production on an if as and when basis; and for the other pending concession acquisitions, up to a further three million shares on a pro-rata basis as clear title to the prospecting licenses are conveyed to Asante; and by reserving a 2% NSR royalty to Goknet and 2% NSR on each of the prospecting licenses conveyed.The Ghana Government holds a statutory 10% free carried (dividend interest) and currently applies a 5% NSR interest and 35% mining tax regime (recently these have been selectively reduced to facilitate new capital investment). Final closing is subject to removal of all subject to clauses - including Ministerial consent. Goknet and Asante are related through one common director.

The Kubi Main deposit was initially explored by BHP in the 1980’s; in the late 1990’s by Nevsun Resources Ltd. of Canada; and from 2006 thru to 2012 by PMI Gold Corporation. Over US$30 million in exploration has occurred on the Property. Nevsun leased the near surface oxide resource to Ashanti (later AngloGold Ashanti) in 1998, and through 2005, 500,000 tonnes of ore with an average grade of 3.65g/t Au producing 59,000 ounces of gold was mined from two small open pits. Ore was trucked from Kubi a distance of 25 km to Anglo’s oxide processing facility at Obuasi.

The Kubi Main gold deposit, as with many West African gold deposits, is located on a major structural ‘break’ between Birimian and Tarkwaian Proterozoic age meta- volcanics and sediments.The famous Ashanti shear zone that hosts the major Obuasi orebodies transects the property just to the west of the Kubi Main deposit. Recent exploration has outlined several promising prospects, including the 513 Zone, Kubi South and other recent exploration discoveries, which may also develop new mineral resources with further exploration.

HISTORY

Asante estimates that over US$30 million in exploration and development work has occurred at Kubi since the mid 1980’s, with 197,857 metres of drilling in 7,063 holes completed:

•First worked by artisanal miners driving adits on high grade quartz reefs in the1920’s;

•BHP (now BHP Billiton) in 1988 completed major regional soil sampling and drilled 12 discovery DDH holes on artisanal workings, totaling 1,695m;

•optioned to Nevsun Resources in 1993, and by 1998 Nevsun completed 68,339m of drilling in 218 DDH holes, 19,274m of RC drilling in 229 holes, and 14,296m of RAB drilling in 499 holes, outlining the Kubi Main deposit and several other showings;

•subsequently leased to and mined by Ashanti Goldfields Co. Ltd. (now AngloGold Ashanti) to 2006 recovering 58,696 ounces of gold at 3.65g/t from two small open pits. Ashanti completed 46,263m of grade control drilling in 3,266 holes, and 2,017m in 29 RC holes;

•Open cut pits were partially backfilled and reclaimed, and mining leases returned to Nevsun. The property was then sold to PMI Gold Corporation in 2007, who completed preliminary scoping studies, air and ground geophysics and 11,174m of DDH in 77 holes, 24,779m in 549 aircore holes, and 10,021m in 2,184 auger holes. In 2009 the “513 zone” was discovered 1.2 km west of the Kubi Main deposit;

•acquired 100% by Goknet in September 2014.

KUBI MAIN GOLD DEPOSIT - Geology

The Kubi Main deposit gold mineralization is contained within a north - northeast trending shear zone close to the Birimian-Tarkwaian contact. The mineralization occurs in a 1.0 to 15.0 metre thick (average 2.1 metre wide) garnetiferous horizon within Birimian metasediments. This garnetiferous horizon contains fine grained gold associated with minor (5-15%) pyrite and pyrrhotite as well as some coarser gold which is associated with relatively narrow quartz veins. Some mineralization occurs in quartz veins and veinlets that cross-cut the Birimian-Tarkwaian contact, outside of the main garnetiferous horizon. The deposit is situated at the intersection of the main NE-SW trending Birimian-Tarkwaian contact and a major north/south trending basement fault. Structurally, it appears that the prominent foliation strikes at approximately 20 degrees and dips steeply to the east while the mineralized zone has a similar strike but dips steeply to the west away from the Birimian-Tarkwaian contact.

The Kubi Main deposit is situated adjacent to the main Birimian – Tarkwaian contact. Seven mineralised zones have been defined within three major structural corridors:

(i) Main Garnet Zone

(ii) Birimian – Tarkwaian contact

(iii) Hangingwall and Footwall Shears

The ‘Garnet Zone’ constitutes 85% of the Kubi Main Resource. A distinct, laterally persistent rock unit, located within the major boundary shear zone and characterised by dense garnet and amphibole development, pyrrhotite and free gold within quartz veins. At Kubi Main, it can be traced for two km along a consistent 020° strike, and with a steep westerly dip of 85° - 75°. It is still open at a depth of 700 metres. A ‘Garnet Zone’ equivalent has been intersected with associated grade in exploration holes drilled at Kubi South and at the ‘513 Zone’ which is also open to the north and to depth.


EXPLORATION WORK COMPLETED

Extensive exploration work has been completed over the Kubi area since 1980’s:


Kubi Exploration Aircore drill collars (from PMI Gold Quarterly Activity Update, Mar 2013)

MINERAL RESOURCE ESTIMATE

NI-43-101 Mineral Resource Estimate by SEMS Exploration Services, 2010:

3D Perspective of SEMS resource wireframe showing backfilled pits; proposed decline; diamond drill holes used in resource database - looking north west from underground (depth grid lines at 200m separation)

Assay long section - Kubi Main Deposit, 2 metre composite pierce points assay g/t Au, looking west

1 Current NI 43-101 resource estimate for the Kubi Main gold deposit was 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, and is filed on SEDAR.

Scientific and technical information contained in this presentation 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.

Maps

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