katx/bvig kwarten mines kibi area

J Kwarteng Mines Ltd, Kibi District, Eastern Region, Ghana PGS 147

Protea GEOSERVICES ghana 29 December 2012

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Protea GEOSERVICES

gHANa

PRELIMINARY ASSESSMENT

OF

J. KWARTENG MINES LTD,

KIBI AREA,

EASTERN REGION,

GHANA

Prepared on behalf of

GLOBAL GOLD INCORPORATED, CANADA

(Subsidiary of Kat Gold Holdings Corp)

REPORT NUMBER PGS 147

AUTHOR : PAUL ABBOTT



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DISTRIBUTION : THOMAS BROOKES 1 (hard copy) GLOBAL GOLD INC 1 (digital) PROTEA GEOSERVICES 1 (digital) DATE : 29 DECEMBER 2012

PRELIMINARY ASSESSMENT OF J KWARTENG MINES LTD,

KIBI DISTRICT, EASTERN REGION, GHANA

1. INTRODUCTION The Kibi District, Eastern Region, is one of the oldest gold producing areas in Ghana and was mentioned in most of the early reports on the region as being the Eastern Akim or Akyem Goldfields, and its gold was reported to be of the highest quality. The area is located about 75km NNW of Accra and it is dominated by the prominent, NNE trending Atewa Range, a continuous, steep-sided but flat topped range that is about 50km long and 10-15km wide. The maximum elevation is about 780m ASL, and stands well above the surrounding lowlands, which are about 200m ASL. This range is the headwaters for the important Birim and Densu river systems (Figures 1 & 2). Virtually all of the past gold mining activity has focussed on alluvial gold occurrences in many drainages surrounding the range, although vein gold deposits are also known in the area. The Atewa Range (coloured green on map in Figure 3) is the source of most of the alluvial and eluvial gold deposits which are developed along the flanks of this range. Alluvial deposits are formed within, and along the banks of, the many drainages flowing off this range, while eluvial deposits are contained within alluvial fans formed by sediments shedding off the range and accumulating at various points along the flanks of the range. From 1903 to 1930 intermittent sluicing operations occurred in the Pusu Pusu area (locality on Figure 4), at the base of the NE flank of the Atewa Range. The area was known for coarse gold nuggets, and recorded production during the 1920’s was 8,600 ozs of gold. In 1928, the Kibi Mine (locality on Figure 4) was developed on quartz veins on the outskirts of the town of Kibi, but there are no records of gold production. From 1990 to 1993 Goldenrae (#32, Figure 3) mined alluvial deposits at Kwabeng (locality on Figure 4) on the NW flank of the Atewa Range. A floating wash plant was used (Figure 5) for the mining operation, with an estimated 18,000-20,000 ozs produced during this 3 year period (Figure 6). In the early 1990’s, Kibi Goldfields was established and obtained a large concession on the NE flank of the Atewa Range (#80, Figure 3). Minproc Engineers conducted a feasibility study over portion of this concession and estimated in excess of 200,000 ozs gold to be contained



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within the mineralised gravels. This deposit is currently being mined by Romex Mining Corp of Canada in a JV with Kibi Goldfields. Several other small companies are mining alluvials around the flanks of the Atewa Range, such as Med Mining on the SW flank (#233, #84, #55, Figure 3), and MG Resources on the E flank (#102, Figure 3).



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FIGURE 1: Political Map of Ghana



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FIGURE 2: Location of Kibi, due west of Koforidua

FIGURE 3: Recent Concession Map of Kibi District



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More recently successful exploration of vein deposits has been done by Canadian junior companies such as Xtra Gold (#32, Figure 3, on the SE flank, adjacent to Kibi village), Abzu Gold Resources (#43, Figure 3) and Romex Mining Corp. (#140, Figure 3).



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FIGURE 4: Geology of the Kibi District

FIGURE 5: Goldenrae Mine with Atewa Range

FIGURE 6: Gold from Goldenrae Mine, with examples of coarse nuggets 2. J. KWARTENG MINES LTD Global Gold Incorporated (GGI) of Canada is currently in discussions with the holders of the J. Kwarteng Mines Ltd concession, located west of the Atewa Range, in the Kibi District (#201, coloured yellow, Figure 3), with a view to concluding an agreement to mine the alluvial gold deposits on this concession.



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As mentioned in the Introduction, the flanks of the Atewa Range contain variable amounts of alluvial, and possibly some vein quartz, gold deposits. As this concession is close to the flanks of this Atewa Range, it is considered to have good potential to contain alluvial gold deposits (judging by the number of artisanal miners which were until recently operating in this concession, but have now been removed). There is also a possibility of vein quartz deposits occurring on the concession, although exploration for these types of deposits would take longer to delineate.

This concession is located SW of Kwabeng and approximately where the “Belt Granitoid High K” label is placed on Figure 4. Note that there is a fault trending NE-SW from Akusu, through the Atewa Range, and into the “Belt Granitoid High K” label (Figure 4). As this concession is located approximately where the label is placed, it is likely that the above-mentioned fault trends through this concession. This fault zone is likely to be mineralised with gold bearing quartz veins and hydrothermal alteration around its margins. This fault zone would thus be a priority hard rock exploration target. If any of the Belt Granitoid High K rocks occur within the concession, it is likely that low pressure dilation zones would be formed around their margins, as these granitoids intrude the Birimian metasedimentary units causing brittle fracturing of the metasediments. The granitoid margins would be good target areas for the development of gold deposits located within these dilation zones.

3. CONCLUSIONS • The J Kwarteng Mines concession is located to the west of the Atewa Range, which is the

source of the alluvial and quartz vein gold deposits around the flanks of this range • This concession has good alluvial gold potential, due to its proximity to the source area • Previous artisanal mining activities indicate the presence of alluvial gold • A NE-SW trending fault zone is possibly developed within this concession, and is likely to

be mineralised with gold bearing quartz veins and hydrothermal alteration around its margins

• If Belt Granitoids occur within the concession, it is likely that low pressure dilation zones would be formed around their margins, which would be good target zones for the development of gold deposits

4. RECOMMENDATIONS • Initially assess all of the past and present artisanal mining operations • Sample and observe any geological structures around these artisanal operations • If observations are favourable, check whether alluvial mining can start in these areas • Lay out a grid for soil sampling, which would be in two parts:

• to check the gravel thicknesses, gravel characteristics and sample for gold mineralisation

• to drill, log and sample the saprolite layers below the gravels to assess the hard rock mineralisation potential

• To map any outcrops to further understand the geology of the concession



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• Assess the saprolite sampling results and plot anomalies for further follow-up •

katx/bvig kwarten mines kibi area

Documents

kibi district figure

atewa range figure

ghana pgs

kibi area

alluvial gold deposits

eastern region

kibi goldfields

ozs of gold