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KUBI GOLD MINE
“Why Gold?” “Why Kubi?”
“Why Asante?”
European Presentation
June 2015
CSE/TSXV: ASE
FRANKFURT:1A9
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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, 2014
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GOLD – a risk free asset in a World full of – fiat currency risk
60% 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
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GOLD …. In terms of 2015 US dollars gold peaked at $9,000 in 1980
Nixon closed USD
gold convertible
window in 1971
unleashing inflation
(devaluation) of
USD through 1980
and gold soared.
Gold is today
historically cheap.
(ShadowStats.com/
Casey Research)
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GOLD shares – leveraged to bullion
Best
entry
point to
gold
shares
in
70
years
During times
of World
financial
system
restructuring
(debt relief )
gold shares
outperform
gold which
itself
outperforms
‘money’
310%
175%
120% 55%
Turmoil in World Financial System
1971 Nixon ends gold backed US$
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GOLD – physical trade and pricing moving East as the Yuan rises
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 valued @
US$9,000 oz
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GOLD – the least volatile of all commodities … and monies
In a volatile
world – gold
has the
lowest
volatility
hence it
makes the
best backing
for World
money
(data source:
http://www.usfunds.
com/interactive/the-
periodic-table-of-
commodities-
returns-2014/#peri
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WHY GOLD? Summary
• Gold bullion has been in a IMF induced ‘low price coma’ to permit US QE 1, 2, 3, Abenomics etc. to re-inflate G10 economies. This largely hasn’t worked, instead created stock market and real estate bubbles …. and an excellent cheap entry point to buy gold which China, Russia & others have capitalized on
• Gold bullion performs best at the time of worldwide ‘money’ instability and ‘reset’ – the end of the gold backed US$ 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
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KUBI Gold Mine & FAHIAKOBA Exploration In Centre of Ghana’s Golden Triangle
• Ghana: one of the most gold endowed areas on Earth with ~200 Moz* of gold resources
• On major structures linking Perseus Mining’s (TSX: PRU) 6.6 Moz*Edikan Mine and AngloGold Ashanti’s 66 Moz* Obuasi Mine, the highest grade, and largest gold resource in West Africa
• Excellent infrastructure - highway, grid power and major mining supply centre at Obuasi
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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 (500 - 650 tpd @ 6 to 8 g/t Au) from decline under previous AngloGold Ashanti pit
• Two options being evaluated: Toll Milling $US25 million funding required - 14 month timeline to production; Build Mill $US45 million – 18 month timeline
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• NI 43-101 Mineral Resource (diluted): Measured 0.66 Mt @ 5.30 g/t Au for 112,000 oz gold; Indicated 0.66 Mt @ 5.65 g/t Au for 121,000 oz; and Inferred 0.67 Mt @ 5.31 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
AngloGold Obuasi Mine Kubi Mine
WHY KUBI? Highlights…
Kubi overlaid
for scale
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KUBI – Composite Assay Long Section (looking west)
• Definition drilling planned from drill bays in decline
• Objective is to develop high grade stopes >8 g/t Au for early payback
• Conventional shrinkage mining to minimize dilution
• Lower grade material will be stockpiled for later shipping/processing
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• Pre-Feasibility commissioned Engineering design work on portal and exploration decline nearing completion
• Excellent mining infrastructure, experienced labor available, near the centre of major Obuasi mining camp
• 20 year renewable mining lease issued, 13 years remaining
• Large exploration upside on 52 sq km land package
WHY KUBI? Highlights…
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• Tight share structure 26 million shares fully diluted, 38% management owned
• 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 gold resources in Ghana
• Mine financing – expect ratio 1/3 equity 2/3 debt
• Kubi Mine US$33M value based on market comparables @ US$95 per ounce of gold resources ($1,200 Au)
WHY ASANTE?
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SHARE CAPITAL Management controlled and tightly held
Shares
Issued and outstanding Shares 22,481,000
warrants 2,000,000
incentive options 2,000,000
Fully Diluted 26,481,000
Management Position 38%
Goknet Mining 9% (note: working capital position presently being funded by
shareholder/long term market loans)
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BOARD OF DIRECTORS/MANAGEMENT
• Douglas R. MacQuarrie, President P.Geo.BC, B.Sc. Geology Geophysics
36 years’ mineral exploration experience, last 20 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 project 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.
• Jag Sandhu, Corporate Development B.Economics
Corporate Finance and Development services including assisting companies in raising multi – million dollar financings for resource exploration and development over the last 15 years. Mr. Sandhu has held various senior level executive positions in a number of listed companies. Resident of Vancouver.
• 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; 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 CFO of Kilo Goldmines Ltd., and Macusani Yellowcake Inc. Formerly CFO of PMI Gold Corporation. Resident of Toronto.
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CONTACT INFORMATION
Canada Suite 206, 595 Howe Street
Vancouver, BC, V6C 2T5
Tel: +1 604 558 1134 Fax: +1 604 558 1136
CAN/US Toll Free: +1 877 339 7525
Douglas MacQuarrie, President & CEO
Tel: + 1 604 710 8442
Email: [email protected]
Jag Sandhu, Corporate Development
Tel: +1 604 306 1950
Email: [email protected]
Ghana PMB CT 8281,Cantonments, Accra, Ghana
Tel: +233 (0)244 029430
Mobile: +233 (0)246 327934
Europe Florian Riedl-Riedenstein
Email: [email protected]
Web: www.asantegold.com
Email: [email protected]
CSE/TSX.V Exchange Symbol: ASE
Frankfurt Exchange Symbol : 1A9
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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 43-101 (“NI 43-101”). 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 www.geographicquide.com.
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GOLD …. money for 4,000 years …. until 1971 when Nixon 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)
