KUBI GOLD MINE OPTION “Why Gold?” “Why Kubi?” “Why Asante?” UPDATE January 2016 CSE: ASE FRANKFURT:1A9 1
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 2
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
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
GOLD …. a risk free asset in a World full of …. Fiat currency risk Government legally and Since 1998 60% to 75% methodically REAL ‘steals’ wealth ‘Money Loss’ through in inflation and Government currency Currency debasement relative to gold averaging ~4% per year over last two decades 5
GOLD …. In terms of 2015 US dollars gold peaked at $9,000 in 1980 Nixon closed USD gold convertible window in 1971 unleashing inflation (devaluation) of USD through 1980 and gold soared. Gold is today historically cheap. (ShadowStats.com/ Casey Research) 6
GOLD shares …. leveraged to bullion During times of World Turmoil in World Financial System financial 1971 Nixon ends gold backed US$ Best system entry restructuring point to (debt relief ) gold shares gold shares 310% in outperform 70 gold which years 175% itself 120% 55% outperforms ‘money’ 7
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 valued @ US$9,000 oz 8
GOLD …. the least volatile of all commodities …. and money In a volatile world – gold has the lowest volatility hence it makes the best backing for World money (data source http://www.usfunds. com/interactive/the- periodic-table-of- commodities- returns-2014/#peri) 9
WHY GOLD? Summary • Gold bullion has been in a IMF induced ‘low price coma’ to permit USA QE 1, 2, 3, Abenomics etc. to re-inflate G10 economies. It largely hasn’t worked, but instead created stock market and real estate bubbles …. and an excellent cheap entry point to buy gold which China, Russia & others continue to capitalize on • Gold bullion performs best at the time of worldwide ‘money’ instability and ‘reset’ – the end of the gold backed US$ 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
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 $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
WHY KUBI? Highlights…. Kubi Mine AngloGold Obuasi Mine • 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 12
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
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
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
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
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 signifi cant 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
CONTACT INFORMATION Canada Ghana Suite 206, 595 Howe Street No. 1, Yapei Link, Airport Residential Area Vancouver, BC, V6C 2T5 P.O. Box 9311, Airport, Accra, Ghana Tel: +1 604 558 1134 Fax: +1 604 558 1136 Tel: +233 (0)207 345194 CAN/US Toll Free: +1 877 339 7525 Mobile: +233 (0)244 331486 Europe Douglas MacQuarrie, President & CEO Florian Riedl-Riedenstein Tel: + 1 604 710 8442 Email: frram@aon.at Email: douglas@asantegold.com Bashir Ahmed, VP Production & Web: www.asantegold.com Development Email: info@asantegold.com Tel: +233 244 331 486 CSE Exchange Symbol: ASE Email: bashir@asantegold.com Frankfurt Exchange Symbol : 1A9 18
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