Overview
Stage | Preliminary Economic Assessment |
Mine Type | Underground |
Commodities |
|
Mining Method |
- Longhole open stoping
- Shrinkage stoping
|
Mine Life | 5 years (as of Jan 1, 2022) |
Source:
p. 21
Company | Interest | Ownership |
Government of Ghana
|
10 %
|
Indirect
|
Asante Gold Corp.
|
90 %
|
Indirect
|
The Company has executed an Option Agreement between the Company, Goknet Mining Company Limited (“Goknet”), Kubi Gold (Barbados) Limited (“Kubi”) and Asante Gold Corporation (GH) Limited to formalize the letter agreement of September 29, 2014 as amended December 29, 2014, and January 29, 2015, to earn a 50% interest in Kubi with the right to increase such interest to 75% and ultimately 100% upon completion of certain conditions.
In December 2016, the Company finalised the agreement with Goknet to close the acquisition of the Kubi Mining Leases, subject to receipt of Government approvals by issuing seven million shares and reserving for future delivery to Goknet a total of 8,000 ounces of gold, and thereafter granting Goknet a 2% Net Smelter Return Royalty. The Minister of Lands and Natural Resources approved the transfer of the Kubi Mining Lease to Asante Gold (Ghana) Limited in April 2022. The Ghanaian Government retains a 10% free carried interest in the mining lease.
Contractors
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Summary:
Within the Birimian and Tarkwaian lithologies of Ghana there are three major types of gold mineralisation:
Type 1: Reef, Vein or Lode gold deposits associated with regional scaled shear zones, such as the Obuasi gold mine to the north of Kubi.
Type 2: Granitoid-hosted, mesothermal gold mineralisation, such as Ayanfuri gold mine to the south west of Kubi.
Type 3: Auriferous quartz-pebble conglomerate deposits such as at Tarkwa and recent alluvial gold concentrations.
The Kubi deposit mineralisation style is Type 1: Birimian aged, shear hosted, reef, vein or lode gold deposit.
Mineralisation
The mineralisation occurs in a 1.0 to 15.0 metre thick garnetiferous horizon within Birimian metasediments. This garnetiferous horizon contains fine grained gold associated with minor (5-15%) pyrite, arsenopyrite and pyrrhotite as well as some coarser gold which is associated with relatively narrow quartz veins. Some mineralisation occurs in quartz veins and veinlets that cross-cut the Birimian-Tarkwaian contact, outside of the main garnetiferous horizon.
SEM (scanning electron microscope) and polished section studies have observed gold and associated sulphides such as pyrrhotite, pyrite, arsenopyrite and occasionally chalcopyrite, rimming and often replacing the included garnet blasts. The garnets are often highly tectonised with native gold, often coarse, and with sulphides coating the micro-fractures.
The grades exhibit ........

Mining Methods
- Longhole open stoping
- Shrinkage stoping
Summary:
Previous mining at Kubi was by open pit mining methods. The Kubi Gold Mine open pit was operated by Ashanti Goldfields and AngloGold Ashanti in two phases between 1999 and 2007.
Previous underground mining study work includes only a report on the preliminary development to establish an underground drilling platform from which to conduct further geological exploration. The mining method was not discussed in the report. Mining methods that could be considered at the PEA level of study include:
- Shrinkage stoping
- Long hole open stoping
- Alimak stoping
- Drift and fill.
The unavailability of tailings backfill, since the ROM will be treated off-site, negates the use of drift and fill. Alimak stoping is not favoured due to the capital requirements for specialist mining equipment and specialist skills required for this method. Considering the methods listed above the two methods which are most suited to this body are shrinkage stoping and long hole open stoping.
An analysis of the vein widths was undertaken which showed that the average vein width is 3.5m. 80% of the mineralised tonnage is contained in veins with a width of greater than 2.0m. While shrinkage stoping works well in narrow stoping widths of 2.0m and less, it is not ideal for wider bodies as it requires men to work under the overhand face, which when stope widths are wider, presents a risk of injury due to falling rocks. Shrinkage stoping also results in a lar ........

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Flow Sheet:
Summary:

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Projected Production:
Commodity | Units | LOM |
Gold
|
oz
| 193,600 |
All production numbers are expressed as metal in doré.
Operational Metrics:
Metrics | |
Daily milling rate
| ......  |
Daily ore mining rate
| ......  |
Ore tonnes mined, LOM
| ......  |
Annual milling capacity
| ......  |
Tonnes processed, LOM
| ......  |
* According to 2022 study.
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Reserves at December 3, 2010:
Mineral Resources were reported using a 2.0g/t Au cut-off grade.
Category | Tonnage | Commodity | Grade | Contained Metal |
Measured
|
0.66 Mt
|
Gold
|
5.3 g/t
|
112,000 oz
|
Indicated
|
0.66 Mt
|
Gold
|
5.65 g/t
|
121,000 oz
|
Measured & Indicated
|
1.32 Mt
|
Gold
|
5.48 g/t
|
233,000 oz
|
Inferred
|
0.67 Mt
|
Gold
|
5.31 g/t
|
115,000 oz
|
Water Supply
The water sources available for the Kubi mine operation includes:
- Surface water sourced and abstracted from the river(s) around or within the lease area, namely Offin River, Gyimi River, Sukuma River or any one of their tributaries
- Rainwater harvesting to augment inadequate sources where necessary
- Groundwater sourced and abstracted from multiple boreholes drilled within the lease area for both domestic and operational use.
The surface water available from the local waterways would be generally unfit for use, due to the high turbidity and contamination created by small-scale mining activities throughout the area. In periods of low rainfall, the surface water supplies would not meet operational demand.
Rainwater harvesting could potentially be a significant source of water for operational use due to the high annual rainfall ranging from 1,500mm to 2,000mm. All-purpose built water catchments require permitting from the Water Resources Commission (Ghana). Figure 77 shows the water drainage patterns within the mining lease. Investigations into potential water collection sites would be required to determine optimal locations for storage dams.
Groundwater resources in Ghana are being increasingly recognized as an invaluable but largely untapped resource. Ghana is thought to have considerable groundwater resources, with good but highly skewed rainfall distribution and per-capita groundwater availability, water supplies within the country is far from uniform, with the southwestern part better endowed than the coastal and northern regions (Gumma M. K. and Pavelic P., 2012).
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