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THE ASANKO GOLD MINE:OPERATIONAL DELIVERY & LONG TERM GROWTHSite Visit Technical Presentation
November9,2017
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This document has been prepared by Asanko Gold Inc. (the “Company”) solely for informationalpurposes. This presentation is the sole responsibility of the company. Information containedherein does not purport to be complete and is subject to certain qualifications and assumptionsand should not be relied upon for the purposes of making an investment in the securities orentering into any transaction. The information and opinions contained in the presentation areprovided as at the date of this presentation and are subject to change without notice and, infurnishing the presentation, the company does not undertake or agree to any obligation toprovide recipients with access to any additional information or to update or correct thepresentation.
No securities commission or similar regulatory authority has passed on the merits of anysecurities referred to in the presentation, nor has it passed on or reviewed the presentation.Cautionary note to United States investors - the information contained in the presentation usesterms that comply with reporting standards in Canada and certain estimates are made inaccordance with National Instrument 43-101 (“NI 43-101”) - standards for disclosure for mineralprojects. The presentation uses the terms “other resources”, “measured”, “indicated” and“inferred” resources. United States investors are advised that, while such terms are recognizedand required by Canadian securities laws, the SEC does not recognize them. Under United Statesstandards, mineralization may not be classified as “ore” or a “reserve” unless the determinationhas been made that the mineralization could be economically and legally produced or extractedat the time the reserve determination is made. United States investors are cautioned not toassume that all or any part of measured or indicated resources will ever be converted intoreserves. Further, “inferred resources” have a great amount of uncertainty as to their existenceand as to whether they can be mined legally or economically. It cannot be assumed that all orany part of the “inferred resources” will ever be upgraded to a higher category. Therefore,United States investors are also cautioned not to assume that all or any part of the inferredresources exist, or that they can be mined legally or economically.
Under Canadian rules, estimates of “inferred resources” may not form the basisof feasibility or pre-feasibility studies except in limited cases. Disclosure of“contained ounces” is permitted disclosure under Canadian regulations;however, the Securities Exchange Commission (SEC) normally only permitsissuers to report mineralization that does not constitute “reserves” as in placetonnage and grade without reference to unit measures. Accordingly,information concerning descriptions of mineralization, mineral resources andmineral reserves contained in the presentation, may not be comparable toinformation made public by United States companies subject to the reportingand disclosure requirements of the SEC.
The presentation may contain “forward looking statements” within the meaningof the United States private securities litigation reform act of 1995 and “forwardlooking information” with the meaning of applicable Canadian securitieslegislation concerning, among other things, the size and the growth of thecompany’s mineral resources and the timing of further exploration anddevelopment of the company’s projects. There can be no assurance that theplans, intentions or expectations upon which these forward looking statementsand information are based will occur. “Forward looking statements” and“forward looking information” are subject to a variety of risks, uncertainties andassumptions, including those that are discussed in the company’s annualinformation form. Some of the factors which could affect future results andcould cause results to differ materially from those expressed in the forwardlooking statements and information contained herein include: market prices,exploitation and exploration successes, continued availability of capital andfinancing and general economic, market, business or governmental conditions.Forward looking statements and information are based on the beliefs, estimatesand opinions of management at the date the statements are made and aresubject to change without notice. The company does not undertake to updateforward looking statements or information if management believes, estimatesforward or opinions or other circumstances should change. The company alsocautions potential investors that mineral resources that are not materialreserves do not have demonstrated economic viability.
FORWARD LOOKING INFORMATION
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FOCUSING ON OPERATIONAL DELIVERY
ROBSLATER,EXECUTIVE:CORPDEVELOPMENT&STRATEGY
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• Longestfunctioningdemocracyinsub-SaharaAfrica
• NewPresidentvotedinDecember2016
• Mininggoldforover100years:
• Ranked10th globally&2nd inAfrica
• US$4.5bngeneratedfromgoldexportsin2016
• Accountsfor~48%ofthecountry’sexportrevenue
• Highlytrained&educatedworkforce
• Majorcompaniesoperatinggoldmines:Newmont,Goldfields,Kinross,AngloGoldAshanti
• Long&wellestablishedmininglaws
• Asanko hassuccessfullypermittedcurrentmine&Esaase +overlandconveyoroverpast2years
• Stablepoliticalandfiscalregime:
• Government10%free-carriedinterest
• Governmentroyaltyof5%
• Corporatetaxrateof35%
• Othermajorindustriesincludecocoafarming,offshoreoilandgas,bauxite,manganese,industrialdiamonds 4
GHANA: AN ATTRACTIVE OPERATING ENVIRONMENT
Belt M&I MineralResource P&P MineralReserves
Ashanti 1400Mt 2.0g/t 90.5Moz 751Mt 1.7g/t 40.6Moz
Asankrangwa 140Mt 1.5g/t 6.6Moz 101Mt 1.6g/t 5.1Moz
Sefwi 253Mt 2.1g/t 16.8Moz 186Mt 2.1g/t 12.8Moz
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ASANKO GEOLOGY & MINERAL RESOURCES
• Ownasignificantunderexploredlandpackage(~679km²)onAsankrangwa Belt
• Mineralizationhostedalongmultipleparallelshearcorridors,typicalofotherGhanaiangolddeposits
• Majorityofdepositsaresedimentorintrusivehosted
• Prospectivity studieshaveidentifiedmultiplenearmine,shallowhighprioritytargets
TotalM&IResources Total P&P ReservesMt g/tAu Moz Mt g/tAu Moz
Esaase 84.02 1.38 3.72 62.56 1.46 2.94Nkran 30.07 1.78 1.72 22.77 1.91 1.40Akwasiso 6.33 1.50 0.31 3.18 1.48 0.15Abore 5.33 1.45 0.25 2.28 1.90 0.14DynamiteHill 3.41 1.48 0.16 2.84 1.49 0.14Adubiaso 2.73 1.80 0.16 4.95 1.51 0.24Esaase D 2.00 1.29 0.08 1.30 1.09 0.05Esaase B 2.65 0.84 0.07 0.19 2.24 0.01Asuadai 1.88 1.22 0.07 0.60 1.48 0.03Adubiaso Ext. 0.42 1.61 0.02 0.21 1.53 0.01Nkran Ext. 0.19 2.70 0.02 0.10 0.83 0.00Total 139.01 1.47 6.59 101.00 1.57 5.11
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THE ASANKO GOLD MINE COMPLEX
• Asanko GoldMine:
• 9depositscomprising11pits
• 4prioritynear-mineexplorationtargets
• 1centralprocessingfacility:Gravity+CILcircuit
• Ongridpower
• Briefhistory:
• Constructedaheadofscheduleandunderbudget
• FirstgoldpouredinJan2016
• CommercialproductiondeclaredonApril1,2016
• FullyrampedupinQ22016
• Additionalmillcapacityconfirmed,basisofP5M
• Strongsociallicensetooperate:
• 98%Ghanaianworkforce
• 2016wonGhanaianCSIAward
TheAsanko GoldMineComplex
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SAFETY - AN OVERRIDING PRIORITY
• Strongsafetyculture,PeopleBasedSafetyapproach=>excellent,industryleadingsafetyrecord
• Contextualizedforsite,Fihankra SafetyManagementSystem
• BasedonaGhanaianAdinkra symbolfora“safe”house
• Regularinitiativesinclude:quarterlyinter-departmentalcompetitions,weeklytoolboxtalks
• SafetyprogramrolledouttoallmajorcontractorstoensuretheyadopttheFihankra system
Incident Type 12MonthRolling
Fatality 0
Lost Time Injury 1
Man-hours 5,337,934
TIFR (per million man hours) 4.12
LTIFR(permillionman hours) 0.19
Last LTI Date 18March 2017
LTI Free Man-hours 3,128,133
LTI Free Days Worked 196
CurrentSafetyCampaignfortheChristmasSeason
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• CommencedmininginFebruary2015
• Hardrock,drill&blastoperationssinceAug2015
• PWMiningGhanaisminingcontractor,mining~27Mtpa
• EquipmentcurrentlyintheNkranpit:• 3xCat6030300texcavators• 1xCat6015200texcavator• 23x777Dtrucks
NKRAN PIT - OVERVIEW
SlopeStabilityRadar
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SRK• 5mComposites
• LeapfrogGradeModel
• OKGradeEstimation
• Structuralinterp controllinggrade
Asanko 2014Relog• 1mComposites
• 35PMIDDBoreholes
• CJMIK&OKModel
• Revisedstructure
• Geodomaining
Asanko 2016Relog• 1mComposites
• 72PMIDDBoreholes
• CJMIK&OKModel
• Revisedstructure
• Geodomaining
Asanko 2016-17• CSAIK&OKModel
• GCModelling
• Integratedpitmapping
• Alterationstudies
UNDERSTANDING OF NKRAN GEOLOGY
2016 2016-172014Pre-Acquisition2012
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NKRAN OUNCE & ORE TONNAGE PROFILE
KeyDynamics• Approx 750,000t/Bench
• Approx 43,000oz/Bench
Pre-miningsurface
Currentsurface
Cut2
Cut3
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
-192
-180
-168
-156
-144
-132
-120
-108
-96
-84
-72
-60
-48
-36
-24
-12 0 12 24 36 48 60 72 84 96 108
120
132
144
156
168
180
192
204
216
AuOun
ces
Tonn
es
6mBenchIncrements- DepthAbove(-ve)andBelow(+ve)September2017baseofpitelevation(962mRl)
AuOz
Tonnes
Tonnes perBench
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AKWASISO & DYNAMITE HILL
Akwasiso
• Only3kmsfromprocessingplant
• MiningcommencedinJune2017
• Extensivelevelsofartisanalworkingsthanpreviouslyanticipated• 1Mtofoxidesremovedfromtheplan• 20,000tpmoxidesinQ3&Q42017• FreshorecommencesH12018
• ThonketislocalGhanaiancontractor,partofourCSR&localprocurementstrategy
DynamiteHill
• ~7kms fromprocessingplant
• GCdrilling(63holes,3,096m)confirmedMRE
• MiningoperationscommencedinQ4 2017
• OxideoremininginQ12018,rampingupto~70,000tpminH12018
• 3rd pitinoperationaddssignificantflexibility
• Rocksure islocalGhanaiancontractor
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MINING INITIATIVES
FocusAreas
• PitMapping! structuralgeologydrivingoredelineation
• Lithology⎼ rocktypeconstrainingmineralization
• StrikeAlignment⎼ blastdesignsalignedwithstrike
• BlastMovementTechnology⎼ oremovementmeasuredandminingpolygons
adjusted
• BlastingFragmentation⎼ improveddig-abilityresultsinimprovedcut
compliance
• BondWorkIndex(BWI)⎼ BWImapped&fundamentaltoblendplan
• GeotechnicalFocus⎼ reducesoperatingrisk& thereforenegative
variancestoplan
• Reconciliation
! +7%varianceongradecontroltoresources
! +1%varianceonmillfeedtoreserves
DroppingBlastMovementMonitoring(BMM)Ballinhole
PickingBMMReading
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MINING DELIVERY
2018MineSchedulingDynamics
• Nkran• Practically,thedepositislimitedto3Mtparates
• Alwaysanticipatedcyclicaloreyields
• Geotechnicalredesignofoxidesslopeshaveaddedwastestrip~4Mt
• Currently50%throughthepushbackinvestmentCut2,thiscontinuesthrough2018
• Oxidereserves- 1.3Mt reductioninavailableoxideoretonnesplannedfromAkwasiso&Dynamitehill
• Granites- RestrictedthroughputratesduetohighBondWorkIndex
• MultipleOreSources• Nkran• AkwasisoestablishedJune,limitedoxides,50%granites,1.5g/tgrade,butwithsome2g/tareas• DynamiteHillestablishingcurrently,+2Mtorewith500,[email protected]/t• Stockpiles([email protected]/t)
Implications• Alloresourcesrequiredtomeetthe5Mtpa feedrequirement
• Stockpilefeedrequiredtooffsetoxidesreductions
• Millfeedgradeconsistentwithreservegraderatios
• Bondworkindex– granitesblendedatlimitedratesintofeed
• 2018productionexpectedtobesimilartocurrent2017range
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P5M PLANT UPGRADES - UPDATE
• P5MVolumetricupgradesinstalledaheadofscheduleandwithinbudget
• VolumetricupgradescommissioningcompletedQ32017
• Design:9,000tpdfresh(3Mtpa)&6,000tpdoxide(2Mtpa)
• Achieving+13,500tpdonfreshoreoncampaignbasis–93%ofblendvs.planof60%
• Currentlyfeedinghigherquantityoffreshoretonneswithtemporarymobilecrushers
• Secondarycrushertobeinstalled&commissionedQ22018
• UpgradetorecoverycircuittobecompletedinQ12018
• InstallationofILR&Knelson concentrator
• 2nd oxygenplant
• Expansionofelectrowinning capacityingoldroom
• TotalcapexUS$22m,~US$16mspent
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update
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P5M: ESAASE EXPANSION
• [email protected]/tfor2.9Mozgold
• Fullypermitted
• Conveyoroptimaltransportsolution=>Opex:US$0.37/t
Esaase - QuickFacts
• P5Mpitsrefocusedtooptimizestripratio&AISCwhilstmaintainingP10Moptionality
• Reviewing:
• Pitsequence
• Oretypecut-offgrades
• Feedmaterialtypeblendratios
• Phaseddevelopment&capitalapproach
• DFScapitalcost~US$128mincludes:
• Overlandconveyor
• Pitestablishment
• Tetrem relocation
• PublicRoad
• Willbeapprovedoncefundingsolutioninplace
P5MOptimizationProgress
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P10M OVERVIEW: LONG-TERM GROWTH
• P10MDFScompletedJune2017,doublesAGM’sprocessingcapacityfrom5Mtpato10Mtpafor~450,000oz/pa
• Separatemodularproject=>canbeimplementedatanytime
• CapitalCostestimatedatUS$200m
• ForDFSpurposes,P10MschedulebasedonoptimalNPV,howevertimingatBoard’sdiscretion
• Significantproductionover+10yearLoM withadditionalexplorationupsidepotential
Mill
Processwaterdam
Thickener
O2Plant
NewCILtrain
Newstockpile
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EXPLORATION UPDATE
BENJAMINGELBER,MANAGER:GENERATIVEEXPLORATION
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ASANKO EXPLORATION STRATEGY
Asanko utilizesasystematic,prospectivity based,benchmarkdrivenexplorationapproachbasedongoodscience
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CURRENT ACTIVE & HIGH PRIORITY TARGET ZONES
Threeclearwalkuptargetareas.Thetwohighestprioritytargetswillbetestedinthephase1drillingprogram
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MIRADANI TREND TARGETS
Threeclearwalkuptargetareas.Thetwohighestprioritytargetswillbetestedinthephase1drillingprogram
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2
TwohighprioritytargetstobetestedinPhase1
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MIRADANI TARGET
Multiplezonesofmineralizationoverastrikeof580mwithcumulativewidthsof>60m
580mstriketobeultimatelytested
Cumulativewidthofmineralizationupto>60minmultiplezones
320mcoretobeinitiallytestedinPhase1
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TONTOKROM TARGET
Multiplezonesofmineralizationoverastrikeof650mandwidthsof>80m
Cumulativewidth ofmineralization>80minmultiplezones
650mstriketobeultimatelytested
400mcoretobeinitiallytestedinPhase1
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CENTRAL TARGET – TESTED AS PART OF PHASE 2
Multiplezonesofmineralizationoverastrikeof320mandwidthsofupto>40m
TheCentralTargetwillbeinitiallytestedaspartofPhase2
60m
320mStriketobeultimatelytested
Cumulativewidthofmineralizationappearstobeupto>40minmultiplezones
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• Operations
• Operationalfocusareas:
• Finetuningresource&reserveconversion&miningsystems
• Continuedefficiencyimprovements
• Unitcostsofproduction
• FromQ42017,millfeedgradesexpectedtoreflectaveragereserve&stockpilegrades
• Exploration
• Midras SouthMaidenResourceinQ12018
• CommencedrillingatMiradani - maidenresourceinH22018
• P5MOptimizationPlan
• Progressingwell,intandemwithfundingsolution
• 2017GuidanceOnTrack
• Production:205,000to225,000oz=>YTD153,596oz
• AISC:US$920/oz toUS$960/oz =>YTDUS$955/oz
• 2018Production
• Expectedtobesimilarto2017range
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OUTLOOK
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AlexBuckInvestorRelations
N.AmericanToll-Free:18552467341Telephone:+44-7932-740-452Email:[email protected]
RobSlaterCorporateDevelopment&Strategy
N.AmericanToll-Free:18552467341Telephone:+27-11-467-2758Email:[email protected]
CONTACT US