AMI Resources to restart drilling at North Ashanti
2016-05-20 12:45 ET - News Release
Mr. Robert Spiers reports
RECOMMENCEMENT OF DRILLING AND PRIVATE PLACEMENT
AMI Resources Inc. intends to recommence drilling over its North Ashanti gold project in Ghana, West Africa. The drilling program is designed to reorientate the drilling direction in order to better represent the mineralized trend whilst at the same time provide valuable information for a vein and structural orientation study which will be used in the characterization of the associated historical drilling over the project area.
Past exploration activities by previous programs over the North Ashanti gold project (Beposo and Anuoro), as well as the continued efforts on regional exploration activities by Owere Mines to the north at Konongo and by AngloGold Ashanti in Obuasi to the southwest, have provided a more detailed and tighter understanding of the regional controls on the mineralized trends which intersect the AMI North Ashanti gold project. Throughout the entire Ashanti trend, the contacts between the Upper Birimian and local granitoids, the blanket meta-sedimentary series and Lower Birimian host almost all of the notable mines and known mineralized trends. When the geological trends are coupled with the structural fabric as defined from local and regional geophysical interpretation, the level of coincidence with geology, mineralization and structure is increased. Based on the highly encouraging results obtained by the historical field programs, and in line with recent desktop and field studies undertaken by Spiers Geological Consultants (2015), a number of key target areas have been identified for follow-up field activities which will include (but is not limited to) reverse circulation drilling and directional drilling.
The areas with the highest priority will be targeted in the first phase of drilling. Priority drilling is planned over areas which are adjacent to the northern boundary of the AMI Anuoro concession. These areas are interpreted to be along strike on the same structural feature as that seen to the north on the Main Sentreso trend -- Owere Mines.
The Sentreso mineralization, which has been well documented by Owere Mines, is adjacent to the northern boundary of the North Ashanti-Anuoro concession, and AMI's May, 2008, National Instrument 43-101 resource report, indicating 97,686 ounces in the Anuoro north zone, clearly demonstrates the mineralized trend continues to the southwest.
During field reconnaissance by SGC in the vicinity of target areas, both transitional to fresh rock mineralization trending southwest-northeast and, to a minor extent, southeast-northwest on quartzite to minor massive quartz veins in an interbedded greywacke/phyllite geological host with potential for intermittent granitoids were observed.
The interpreted mineralized trend dips approximately 80 degrees to the northwest which is in line with the regional context of the known mineral occurrences (Owere, Beposo, Oboum and Obuasi deposits). In planning this phase of drilling (to swing the orientation 180 degrees to the southeast), it is hoped that close to true widths across the mineralized trend will be encountered which will enable vein orientation work to be completed and thus enable further more considered drill targeting to be undertaken.
It is also key to note that regional dikes transect the area from south-southeast to north-northwest, utilizing pre-existing weaknesses in the local lithology. It is observed to the north in the Owere Mines concessions that the structures within which the dikes exist appear to provide an additional focal point for the entrapment of the main gold mineralization in conjunction with the southwest-to-northeast-trending structural and lithological fabric. It is for this reason that the first round of drilling confirmation in the AMI concessions is focused in and around areas associated with the occurrences of the dikes and associated structures adjacent to the local granitoids. A total of 430 metres of drilling is planned with 180 metres planned in the first phase of drilling which is seeking to retarget existing mineralized trends with drilling orientated back to 135 degrees to better intersect the dip of the local mineralization. The new drilling direction is planned to provide near to true thickness intercepts based on a review of the regional structural and geological controls. From the historical drilling, no vein orientation was available as the drill holes were predominantly reverser circulation. The planned phase one drilling is proposed to be diamond to gain the all critical vein orientation information upon which a mineralized model can be constructed. Mr. Spiers, who is a qualified person for resource estimation under the JORC 2012 code and guidelines and the NI 43-101 instrument for the reporting of mineral resource estimates, has either prepared/supervised or approved the above information.
Also, the company wishes to announce that it intends to issue a maximum of five million units at a price of five cents per unit for gross proceeds of up to $250,000 subject to regulatory approval. The units will be sold on a non-brokered private placement basis and will be offered pursuant to exemptions from the registration and prospectus requirements of applicable securities legislation. Each unit shall consist of one common share of the company and one common share purchase warrant. Each warrant will be exercisable to purchase an additional common share of the company at an exercisable price of five cents per share for a period of 24 months from the date of closing. The net proceeds of the private placement will be used to maintain existing operations, develop and implement the exploration program for North Ashanti gold project in Ghana, West Africa, and for working capital purposes. All securities issued pursuant to the private placement will be subject to a four-month hold period from the date of issuance. The private placement is subject to the acceptance of the TSX Venture Exchange. It is not anticipated that the company will pay any finders' fees in connection with the above financing.
Under the stock option plan, stock options to purchase an aggregate of 600,000 common shares of the company at an exercise price of five cents per share for a period of five years have been granted to certain directors of the company, and 500,000 common shares of the company at an exercise price of 15 cents per share for a period of five years have been granted to a certain director of the company.
We seek Safe Harbor.