Overview

Golkor, Inc. and AMBEX Ghana Limited have partnered to develop the gold mining project in Obuasi, Ghana, strategically located within a highly productive gold region. The project lies just 3 kilometers on strike from the world-renowned Obuasi Gold Mine, operated by AngloGold Ashanti, a multi-billion-dollar publicly traded company. The Obuasi mine has produced over 40 million ounces of gold to date and continues to recover more than 27 million ounces of reserves, with ongoing drilling to further expand its significant gold resources.

Golkor’s mining licenses encompass 4 kilometers within the same gold trend as the Obuasi mine, underscoring the project’s potential for significant gold discovery and extraction. The exploration license covers Area 1 (16.2 km², 29 small claim licenses) and Area 2 (57.2 km², 110 small claim licenses), restricted to small-scale mining and managed by the Landowners Association. Each mining license is approved for a maximum production capacity of 1,000 tons per day.

The project’s Phase 1 targets processing 500 tons of raw ore daily, with plans to scale to 1,000 tons. AMBEX also plans to implement an ore purchasing program to collaborate with local artisanal miners, consolidating production and eliminating harmful mercury use. A centralized CIP (Carbon- in-Pulp) processing plant will integrate 159 small-scale mining operations, enhancing efficiency and environmental sustainability.

Golkor and AMBEX operate independently while fostering local partnerships and upholding regulatory compliance. By leveraging cutting-edge technology, strategic positioning within a proven gold trend, and strong community engagement, the venture aims to deliver sustainable and responsible gold extraction, capitalizing on the immense potential of this gold-rich region.

Major Operating Gold Mines in Ghana, West Africa

Key Highlights

Joint Ventures: Golkor & AMBEX: 50/50 partnership AMBEX & Landowners: Agreement for 159 small claim mining licenses with the Landowners Association, retaining 20% of gold production. AMBEX & Claim Holders: 80/20 joint venture with two groups holding 10 mining licenses
Licenses: 30 km² (Area 1: 16.2 km², 49 small claims; Area 2: 54 km², 110 small claims)
Location: Obuasi Ghana area, southern extension of AngloGold Ashanti’s Obuasi Gold Mine, producing 450,000 oz/ year with 24.5 million oz in reserves. Golkor’s licenses to the south span 4 km of the same gold trend
Geology: High-grade quartz veins within the Proterozoic gold belt, extending 4 km from Obuasi, with active gold recovery by local miners.
Infrastructure: 500 tpd CIP plant scheduled construction on purchased land near the exploration license. Offices set up in Obuasi and local skilled workforce readily available
Permitted Operations: Current operations at the project are fully permitted, allowing for underground mining and mill operations, with all necessary environmental, state and municipal clearances
Operations: The company will conduct direct open- pit and underground mining in high grade locations approximately 1.4 km distance to the plant for best economical output. Additionally, gold bearing ore will be accepted from the 159 licensed local land association miners, processed at a 500 tpd CIP plant, scaling to 1,000 tpd in 2nd phase of expansion
Drilling Program: An extensive drilling program is started while the company continues to define and expand its gold reserves
Mine Life: 5+ years, with ore averaging 8 g/ton

Gold Mining in Ghana, West Africa

Ghana’s mining sector pre-dates the colonial era and is famous for being one of the most prolific gold mining regions in the world
Prior to 1983, most Ghanaian mining production was state owned, but since the Economic Recovery Program, Ghana has attracted foreign investments and pushed towards privatization and state divestiture
The sector is now largely foreign owned, but the Government of Ghana still holds a minority free carried interest in most of the main active large-scale mines. The small-scale mining industry is reserved for Ghanaians
The Mining industry of Ghana accounts for 5% of the country’s GDP and minerals make up 37% of total exports, of which gold contributes over 90% of the total mineral exports
Ghana is Africa’s number one exporter of Gold overtaking South Africa in 2019 with 4.8 million ounces of output
According to GlobalData, Ghana is the world’s eleventh-largest producer of gold in 2022, with output up by 9% on 2021. Over the five years to 2021, production from Ghana decreased by a CAGR of 9.66% and is expected to rise by a CAGR of 1% between 2022 and 2026
There are more than 20 world class mining companies operating in Ghana from The United States, Canada, and Australia
Leading producers of gold in Ghana are Gold Fields, Newmont, AngloGold Ashanti and Kinross Gold

Neighboring World Class Gold Discoveries

Obuasi Gold Mine

The Obuasi Gold Mine, located near Obuasi in the Ashanti Region of Ghana, has a rich history dating back to 1897 when large-scale commercial and industrial mining began under the Ashanti Goldfields Corporation, contributing to the region’s significance in providing the gold for which the Gold Coast was named. Over the years, it became one of the world’s top ten largest gold mines.

In 2004, Ashanti Goldfields merged with AngloGold to form AngloGold Ashanti, with Obuasi and the Iduapriem Gold Mine contributing 11% to the company’s annual production. At its temporary closure in 2014, Obuasi had past gold production plus current resource of 62 million troy ounces.

A favorable feasibility study in 2017 highlighted a strong technical and economical case for the mine’s pre-development, projecting a 20-year mine life. The project received approval from the AngloGold Ashanti board in 2018, kicking off the redevelopment initiative.

After receiving approvals from the Ghanaian Government in 2018, efforts to recapitalize the mine began in 2019. The redevelopment project saw its first gold pour in December 2019, marking a significant milestone in its revival.

Phase 1 of the project concluded by the end of September 2020, initiating commercial production on October 1, 2020. Phase 2, focusing on construction and mine development, was completed in 2021. Currently, Phase 3 is in progress, aiming to develop infrastructure to support a planned ramp-up in production to 5,000tpd by the end of 2023. Despite setbacks like the temporary stoppage of underground activities due to a fall of ground incident in May 2021, production gradually resumed later that year, demonstrating the resilience and determination of the Obuasi Gold Mine’s redevelopment efforts.

Ambex Mine Project

GOLKOR’s gold mining assets are strategically positioned south of the renowned Anglo Obuasi mine, within the prolific Obuasi Gold Belt in Ghana, a region celebrated for its abundant high-grade gold deposits. This project benefits from extensive historical exploration, including trenching, pitting, and drilling conducted by AngloGold Ashanti and local small-scale miners, which has delineated promising gold trends. The proven geology of the region and proximity to a world-class gold mine provide a solid foundation for GOLKOR’s venture.

The company’s innovative production plan is underpinned by a joint venture with the Landowner Association, which grants access to critical mining areas covering 25+ existing small-scale mining sites.

These sites boast high-grade ore averaging over +8 g/t Au, ensuring a robust feedstock for the project’s Carbon-in-Pulp (CIP) plants. GOLKOR’s phased development approach begins with a target of 500 tons per day (tpd) of ore processed through its first CIP plant. This capacity will scale to 1,000 tpd with the construction of a second plant, offering significant upside in production and revenue potential.

Adding further value, the project includes an extensive drilling program to increase resource definition and potentially expand the reserve base, enhancing long-term sustainability. The use of advanced mining techniques, such as long-hole open stoping, ensures efficient and safe ore extraction. Additionally, the project leverages infrastructure like the Obuasi Deeps Decline, which provides access to deeper ore zones, and incorporates a well-planned logistics framework to optimize operations.

The joint venture’s profit-sharing model, which allocates 20% of profits to the Landowner Association’s 159 license holders, strengthens community partnerships, promotes local economic development, and ensures alignment with key stakeholders. This collaborative structure not only enhances social license to operate but also reduces operational risks associated with local resistance or disputes.

Overall, GOLKOR’s project delivers compelling value by combining rich geological potential, advanced mining methods, scalable production capacity, and strong local partnerships. This approach positions GOLKOR to become a leading gold producer in the Obuasi Gold Belt, contributing to economic growth while addressing sustainability and community interests.