Blog Coverage Asanko Gold Disclosed its Current Mineral Resource and Reserve Estimates

Upcoming AWS Coverage on Alamos Gold Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 27, 2017 / Active Wall St. blog coverage looks at the headline from Asanko Gold Inc. (NYSE: AKG). As part of its annual filings, Asanko Gold disclosed on February 24, 2017, its current Mineral Resource and Reserves Estimate with regards to its Asanko Gold Mine, Ghana West Africa. The data published is for records as on December 31, 2017. Register with us now for your free membership and blog access at:

http://www.activewallst.com/register/

One of Asanko Gold’s competitors within the Gold space, Alamos Gold Inc. (NYSE: AGI), reported on February 23, 2017, its financial results for the quarter and year ended December 31, 2016. AWS will be initiating a research report on Alamos Gold in the coming days.

Today, AWS is promoting its blog coverage on AKG; touching on AGI. Get all of our free blog coverage and more by clicking on the link below:

http://www.activewallst.com/register/

The current mineral resource and reserve estimates include the depletion resulting from the first two years of mining. The application of updated constraining parameters for resource modelling have been implemented at the three new deposits – Akwasiso, Nkran Extension, and Adubiaso Extension, which were discovered in 2016. The resource modeling has also been implemented on two additional pits at Esaase and when preparing the Mineral Resource Estimate (MRE) for the Nkran pit. The MRE for the Nkran pit, has been prepared by a leading mineral consulting group – CSA Global. CSA is also one of the two independent experts who are grading the ounce profile of the ore at the for the Nkran pit.

The results indicated that as on December 31, 2016, the Company had the measured and indicated resources of 7.34 million ounces at 1.44 g/t Au and inferred resources of 1.43 million ounces at 1.43 g/t Au. The other deduction, as a result of the exercise indicated, that the current updated constraining parameters used are in-line with the best of industry standards. The reserves at Nkran reduced from 2.2Moz to 1.9Moz due to the mining depletion since 2015-2016. This has resulted in a Nkran reserve base reduction of 14%. However, the overall reduction in global DPP reserves was only 6%. The global mineral reserves for the Asanko Gold Mine have benefitted from the addition of new reserves at Akwasiso, Adubiaso Extension, and Nkran Extension, Dynamite Hill, Abore, and Asuadai. Thus, the overall reduction is only 2%.

Sharing his views on the matter Peter Breese, President and CEO of Asanko said:

“Our global gold reserves have remained largely unchanged at 5 million ounces, supported by the successful 2016 near mine exploration program which added over 300,000 low cost ounces to the mineral inventory, offsetting mining depletion. We are very excited by the exploration potential that the Asanko Gold Mine (AGM) complex holds and anticipate adding more ounces to our resource base during 2017 from a considerable list of near mine high priority targets.”

Purpose and goal of the Mineral Resource and Reserve Estimates

The Company had appointed two independent mineral consulting experts for the resource modeling and grading of the ounce profile of the ore at the Nkran pit. However, both experts have arrived at varied conclusions with regards to the grades and tonnes at the Nkran pit but their conclusion with regards to the contained ounce profile remain similar at a 0.5 g/t (gram per tonne) cut off. The Company has decided to go with the findings and conservative resource model used by CSA while calculating for Asanko’s corporate reporting, mine planning and future planning for capital expenditures.

Asanko has plans to develop and open up more pits at the AGM complex including at Dynamite Hill in H2 2017. The AGM complex, for its entire life would offer great flexibility and options since the complex is multi-pit in nature.

CSA’ Review

In mid-2016, the Company had roped in the services of CSA to carry out an external audit for the new MRE for Nkran. Under agreement, CSA had to verify the findings as well as the modelling techniques used by CJM Consulting, who had originally Definitive Project Plan (“DPP”) MRE in November 2016. Apart from this CSA had to verify the Company’s grade control, mining, reconciliation methodology, and the mine to metal accounting. At the end of the audit, CSA concluded that MRE modeling methodology used was in-line with the style of mineralization at Nkran. Also, the grade control, mining, reconciliation methodology, and the mine to metal accounting implemented by the Company were excellent.

CSA’s MRE was for the Company’s Nkran and Dynamite Hill pits and it reviewed the MRE for the Esaase Main pit. CSA’s findings at the end of the review corresponded with CJM’s estimates.

Update on the Expansion DFS

The current mineral resource and reserve estimates will become the basis on which the Company’s revised life of mine plan and multi-pit schedule is calculated. The revised life of mine plan and multi-pit schedule will form a part of the Company’s final Expansion DFS (Definitive Feasibility Study). The Company is in the process of updating all the designs on AGM pits by taking into account current actual mining costs, improved diesel prices, and improved gold recovery rates. Since the planning and scheduling for 11 different pits is a bit complicated, the Company plans to share its Expansion DFS in Q2 2017 which will give detailed information on the associated optimization processes.

Asanko plans to go ahead with the expansion plans for its Project 5M and has already ordered the required long-term lead items. Asanko expects that the Project 5M expansion will be completed by H2 2017 and will be utilizing its internal cash flows at current gold prices which is approximately $1,250/oz gold, for financing the expansion project.

Stock Performance

At the close of trading session on Friday, February 24, 2017, Asanko Gold’s stock price declined 2.30% to end the day at $2.97. A total volume of 1.55 million shares were exchanged during the session, which was above the 3-month average volume of 890.12 thousand shares. The Company’s share price has gained 42.11% in the past twelve months. The stock has a forward PE ratio of 28.83 and a market capital of $613.39 million.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 456026