Ashanti Gold Intersects Wide Intervals of Gold at Gourbassi West, Kossanto East Project, Mali
Vancouver, August 21, 2017 - Ashanti Gold Corp. (TSXV: AGZ) ("Ashanti" or the "Company") is pleased to announce results of an additional sixteen drill holes from the recently completed 53 Reverse Circulation ("RC") hole, 6073 metre drill program that tested mineralization on the Kossanto East Project (the "Property") in western Mali (see August 2 and 10, 2017 press releases) (Figure 1). These results are the first from the Gourbassi West target to be reported by Ashanti (previous results were from the Gourbassi East target). Gourbassi West is an important target because it shows gold mineralization along a 1.3 km north-northwest trend up to 80m wide and apparent intersecting northeast-trending lesser zone as indicated by historic drilling and sampling (Figure 2). Gold mineralization at Gourbassi West occurs in silicified volcanic breccia with multi-stage quartz stockwork and veining. Highest grade gold mineralization occurs with the most intensely silicified volcanic breccia. This drill program defined the orientation of the mineralized zone and indicates that it dips moderately west to subvertical (Figures 3 and 4). The strike and dip extents of mineralization are not known. Results suggest that higher grade gold occurs in plunging high-grade sub-zones.
The host volcanic breccia is part of an extensive felsic volcanic complex inferred to be near the top of the local greenstone belt sequence, the most common position for large gold deposits to occur in felsic rocks of greenstone belts. Structural controls appear to parallel the Senegal-Mali and Main Transcurrent Shear Zones (Figure 1) as evidenced by the alignment of mineralization parallel to both features.
Drilling returned excellent grades and widths, including (see Table 1):
| ● | 33 m @ 1.00 g/t Au (GWRC117) |
| ● | 60 m @ 1.05 g/t Au (GWRC119) |
| ● | 73 m @ 0.58 g/t Au including 10 m @ 1.80 g/t Au (GWRC124) |
| ● | 17 m @ 2.74 g/t Au including 1 m @ 30.13 g/t Au (GWRC125) |
Table 1: Highlights of Gold Intercepts GWRC115 to GWRC130
| Hole # | From(m) | To(m) | Interval(m)* | Au(g/t) |
| GWRC115 | 2 | 9 | 7 | 0.54 |
| 45 | 58 | 13 | 1.15 | |
| GWRC116 | 4 | 62 | 58 | 0.55 |
| incl. | 35 | 39 | 4 | 1.06 |
| 103 | 104 | 1 | 4.20 | |
| GWRC117 | 3 | 38 | 35 | 0.98 |
| incl. | 4 | 37 | 33 | 1.00 |
| incl. | 21 | 34 | 13 | 1.45 |
| 51 | 57 | 6 | 1.55 | |
| incl. | 51 | 54 | 3 | 2.43 |
| GWRC118 | 4 | 8 | 4 | 1.40 |
| 15 | 23 | 8 | 0.48 | |
| 29 | 31 | 2 | 1.94 | |
| 56 | 59 | 3 | 0.76 | |
| 65 | 66 | 1 | 1.79 | |
| GWRC119 | 0 | 70 | 70 | 0.94 |
| 3 | 63 | 60 | 1.05 | |
| incl. | 3 | 11 | 8 | 1.35 |
| incl. | 3 | 18 | 15 | 1.15 |
| incl. | 42 | 62 | 20 | 1.32 |
| incl. | 42 | 46 | 4 | 2.45 |
| GWRC120 | 44 | 62 | 18 | 0.81 |
| incl. | 54 | 61 | 7 | 1.29 |
| GWRC121 | 67 | 85 | 18 | 0.62 |
| incl. | 77 | 81 | 4 | 1.10 |
| GWRC122 | 82 | 100 | 18 | 0.71 |
| 85 | 95 | 10 | 1.00 | |
| GWRC123 | no significant intercepts | |||
| GWRC124 | 50 | 123 | 73 | 0.58 |
| incl. | 50 | 52 | 2 | 1.33 |
| incl. | 113 | 123 | 10 | 1.80 |
| incl. | 113 | 116 | 3 | 3.56 |
| GWRC125 | 36 | 53 | 17 | 2.74 |
| incl. | 36 | 38 | 2 | 19.16 |
| incl. | 36 | 37 | 1 | 30.13** |
| 58 | 61 | 3 | 0.30 | |
| 85 | 89 | 4 | 1.02 | |
| GWRC126 | 1 | 8 | 7 | 0.48 |
| incl. | 4 | 5 | 1 | 2.10 |
| GWRC127 | no significant intercepts | |||
| GWRC128 | 55 | 57 | 2 | 0.32 |
| 89 | 95 | 6 | 0.43 | |
| GWRC129 | 18 | 44 | 26 | 0.33 |
| 70 | 78 | 8 | 0.29 | |
| 85 | 87 | 2 | 0.38 | |
| 93 | 94 | 1 | 3.28 | |
| GWRC130 | 11 | 22 | 11 | 1.19 |
| incl. | 17 | 18 | 1 | 5.44 |
| 34 | 38 | 4 | 0.32 | |
| 47 | 50 | 3 | 0.38 | |
| 56 | 58 | 2 | 0.43 | |
| 66 | 77 | 11 | 0.26 | |
| 89 | 91 | 2 | 0.27 | |
| 98 | 99 | 1 | 0.35 | |
*Intervals are intercept widths in drill hole and not true widths. There is insufficient geologic information to determine true widths at this stage of the project. Drill holes are oriented to provide the best intercept for the interpreted dip direction of mineralization.
**average of 37.1, 23.7, and 29.6 g/t Au
Figure 1: Regional geologic map of the Kedougou-Kenieba Inlier, the most northwesterly exposure of Birimian rocks in the West African craton. The Kossanto East property lies between two regional structures, the Senegal-Mali Shear Zone and the Main Transcurrent Shear Zone both of which feature prominently in localizing mineralization for numerous gold deposits. Structural relationships on the property suggest that structures parallel to these shear zones pass through the property and control mineralization.
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The company undertook a drill program in June and July of 2017 at Gourbassi East and Gourbassi West to test these two principle Project targets. In the interest of obtaining the maximum number of holes across both targets and optimizing use of the drill rig prior to commencement of the rainy season, approximately half of the drill holes planned for Gourbassi East were drilled first, followed by drilling all holes at Gourbassi West. The drill rig then returned to Gourbassi East to complete the drill program. The Company is releasing data as the laboratory completes its analysis, roughly in the same sequence of drilling mentioned above. The remainder of the program results are anticipated by the end of August.
The Company advises that drill holes are oriented to intersect stratigraphy at an optimal angle, however true widths cannot be determined as detailed information on the true orientation of stratigraphy at the point of intersection of the drill hole is not available. Quality control is monitored by the insertion of blind certified standard reference material and blanks at a rate of 1/20 samples. Blind duplicate splits are inserted into the sample stream at the rate of 1/50 samples. In addition, the laboratory inserts their own certified standard and blank samples at the rate of 1/20 samples. All samples have been analyzed by SGS Laboratories in Bamako, Mali an internationally accredited testing company.
About Kossanto East Project
The Kossanto East Project is a 66.41 km2 concession in the prolific Kedougou - Kenieba Inlier, the northwestern most exposure of Birimian rocks in West Africa and host to the Loulo and Sadiola group of world class gold deposits (Figure 1). Ashanti has acquired 100% in the property from Alecto Minerals PLC (see press release of August 8, 2017). The Property hosts two principle historically drill-tested targets, Gourbassi East and Gourbassi West (Figure 2) and several surface anomalies identified in surface samples and Rotary Airblast (RAB) drill holes. Geochemical anomalies identified by previous explorers and Alecto Minerals PLC led to drill testing and successful intersection of gold mineralization. The results reported here are from Gourbassi East.
ABOUT ASHANTI GOLD
Ashanti is a gold-focused, exploration and development company with advanced projects in the northern Ashanti Belt of Ghana and the Kenieba Belt of Mali. The Company targets projects where existing work demonstrates attractive potential for near-term mine development and where it has a competitive advantage due to past work experience of the team and specific project know-how.
On Behalf of the Board of Directors of
Ashanti Gold Corp.
"Tim McCutcheon"
Tim McCutcheon
CEO
For further information, please contact:
Ashanti Gold Corp.
2300 — 1177 West Hastings Street
Vancouver BC, V6E 2K3
Phone: 604-638-3847
Qualified Person and Quality Control/Quality Assurance
Dr. Paul Klipfel, CPG (AIPG certification #10821), Ashanti's COO and Chief Geologist is a Qualified Person as defined by Canadian NI 43-101 and has supervised the preparation of the scientific and technical information that forms the basis for this news release. Dr. Klipfel is responsible for all aspects of the work including the Quality Control/Quality Assurance programs. Dr. Klipfel is not an Independent Person, as he is a shareholder of Ashanti.
Cautionary Statement on Forward-Looking Information
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains forward-looking statements and forward-looking information (collectively, "forward looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement, timing and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the commodity markets generally, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of the Company to obtain any necessary permits, consents or authorizations required, including TSXV acceptance, for its planned activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.