African focussed company developing a new gold project in the world class Ashanti Gold Belt of Ghana

Transcription

1 A NEW GOLD PROJECT IN THE ASHANTI GOLD BELT OF GHANA DIGGERS AND DEALERS August 2009

2 COMPANY PROFILE African focussed company developing a new gold project in the world class Ashanti Gold Belt of Ghana Focussed on moving the Konongo Gold ldproject tto a +100,000 ounce per annum gold producer. Experienced management team with track record of Experienced management team with track record of success and adding value to projects.

3 MANAGEMENT TEAM Matthew Wood (Chairman) Expertise in project identification, negotiation, acquisition and corporate development. Bill Oliver (Managing Director) Wide ranging exploration experience including leading large scale resource definition projects for Rio Tinto Iron Ore and grassroots exploration teams in Europe. Tim Flavel (Director) Chartered Accountant and Company Secretary with more than 20 years experience in the mining industry and accounting profession in Australia and overseas. Stuart Murray (Director) Chief Executive Officer of Aquarius Platinum Limited. Provides a wealth of African project tdevelopment and operating experience.

4 COMPANY STRUCTURE No. Shares (million) % Shares Top Total Shares 52 week trading range: A$0.006 to A$0.04 Current cash reserves: A$785,000 Marketcapitalisation at A$0.02: 02: A$8.3 million

5 LOCATION The Konongo Gold Project is situated in the world class Ashanti Gold Belt of Ghana. Along strike from some of the worlds largest gold mines. Located 200km NNW of the capital Accra. Ghana has an established, successful gold mining industry (9 th largest gold producer globally). ll

6 HISTORICAL GOLD PRODUCTION Recorded dhistorical i gold production of 16million 1.6 ounces of gold at a head grade of 11.8 g/t gold. Current JORC resources are 15 million tonnes at 2.0g/t Au, over 975,000 ounces of contained gold. (Indicated and Inferred category)

7 RESOURCE TABLE Deposit Measured Indicated Inferred Total Tonnes Grade Ounces Tonnes Grade (/ (g/t Ounces Tonnes Grade (/ (g/t Ounces Tonnes Grade Ounces (t) (g/t Au) Au (t) Au) Au (t) Au) Au (t) (g/t Au) Au Obenemase 1,297, ,000 1,081, ,000 2,378, ,000 Asieye 1,500, ,581 1,500, ,581 Kwakawkaw 344, , , ,673 Nyabo East 540, , , ,939 Patuo 43, , , , , ,777 Kyereben West 124, , , ,359 Atunsu North 164, , , ,165 Aserewa 20, , , , , ,645 Atunsu 14, , , , , ,670 Apan 24, , , , , ,050 Leopard Shaft 95, , ,071 Boabedroo 30, , ,015, ,226 Akyenase Central 58, ,459 96, , , ,620 Santreso West 3,520, , , ,553 4,330, ,360 Santreso South 340, , , ,682 Santreso East 700, , , ,612 Total 5,006, ,744 10,000, ,686 15,006, ,430 The Mineral Resource presented in this table has been compiled and reviewed by Mr Bill Oliver from publically stated JORC-compliant information originally prepared in 2005 by RSG Global for Mwana Africa s AIM-listing document with a 2006 resource update for the Obenemase Deposit and a 2008 resource update for the Boabedroo deposit. This information, in the opinion of Mr Oliver, complies with the reporting standards of the 2004 JORC Code. Mr Oliver is a Member of the Australian Institute of Mining and Metallurgy and the Australlian Institue of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Oliver is the Exploration Director of Signature Metals and consents to the inclusion of this table in the form and context in which it appears based on the information presented to him.

8 192km 2 of granted tenure (1 mining license, 1 prospecting license). Over 12 kilometres of mineralised strike along the world class Ashanti Gold Belt. 16 known gold deposits within the project area. Existing resources being updated and re evaluated evaluated

9 INITIAL DEVELOPMENT AREA 5 deposits mined by open cut methods during a period where spot gold price was less than US$300/oz. Eiti Existing haul road to plant. ASEWERA SOUTH PIT Remanant resources below pits and along strike Strike extensions not fully tested. Open at depth

10 350KTPA CIL PLANT REMAINS ON SITE

11 INFRASTRUCTURE 350ktpa CIL plantonsite Lead time 6 12 months if fast trackedtracked Plant can be refurbished at a fraction of the cost of purchasing a new/2 nd hand plant Significant ifi infrastructure t access via sealed ldroads, project on national power grid, 50kms from Kumasi (regional centre with airport, support businesses) Skilled workforce and mining contractors available g locally will reduce implementation times/costs.

12 CONSIDERABLE EXPLORATION UPSIDE Potential for new discoveries i Significant soil anomalies not drill tested OBENEMASE AREA KONONGO AREA Numerous drill ready targets Most exploration focussed on one mineralised trend

13 KONONGO AREA Potential for further reefs and high grade shoots to be discovered. Resources outside main development areas not tested deeper than 50 metres.

14 OBENEMASE LONG SECTION Potential for further high grade mineralisation

15 WORK PROGRAMME Resource review and re estimation estimation has commenced. Resource updates to be released through Exploration review has commenced. Mining study to be completed by end Exploration and resource drilling late Review of plant refurbishment, infrastructure and stockpiles underway.

16 TARGETS FOR KONONGO PROJECT Assess potential for early cash flow from stockpiles and open pit mining Early move to full feasibility study. Move to first production in 2010/2011. New high grade (+10g/t Au) g g ( g ) Obenemase style discovery.

17 SUMMARY Proven management team. 1 Million ounce JORC Resource in the world class Ashanti Gold Belt of Ghana. Market cap of $8.3M = $7.50 EV/resource oz Considerable potential for resource growth. Past production of 1.6 Million ounces at 11.8g/t gold. 350ktpa CIL gold treatmentplant on site site.