ASCOM Precious Metals Mining

APM Everywhere

Ethiopia

Ethiopian Concessions

ASOSA

ASOSA
Highlights

  • An initial Phase 1 drilling program of 78 reverse circulation (RC) drill holes has been reported to date and drilling continues with good results.
  • Preliminary gold assay results from this drilling have confirmed that significant near-surface gold mineralization appears present at Dish Mountain.
  • Significant intercepts of gold mineralization for the first 17 RC holes and surface trenching are:
      • RC drilling:
        • DMRC001: 46m @ 1.64 g/t Au
          including: 10m @ 5.38 g/t Au
        • DMRC005: 37m @ 2.67 g/t Au
          including: 15m @ 5.17 g/t Au
        • DMRC007: 11m @ 3.08 g/t Au
        • DMRC008: 12m @ 2.46 g/t Au
        • DMRC017: 22m @ 1.88 g/t Au
          including 10m @ 3.08 g/t
    • Surface Trenching:
      • DMTR001: 34m @ 3.12 g/t Au
        including: 14m @ 5.54 g/t Au
      • DMTR002: 17m @ 3.03 g/t Au
      • DMTR002: 34m @ 2.07 g/t Au
        including: 21m @ 2.54 g/t Au
      • DMTR004: 18m @ 2.58 g/t Au

    Asosa now comprises two license blocks, the original concession (405 km2), plus a new contiguous extension block to the border of Sudan (70 km2), for a total area of approximately 475 km2. Asosa is located in western Ethiopia, in the Benishangul Province. The area is hosted within a Precambrian Pan-African greenstone belt. This belt and analogous terrains host most of the significant known gold and other metal deposits in Africa, including the Legadembi shear-related orogenic gold quartz vein system in southern Ethiopia.

Asosa Concession, Ethiopia- Dish Mountain (Gold)

Figure 1.- Dish Mountain, Asosa Concession, Western Ethiopia.

An initial reverse circulation drilling commenced on the gold target at Dish Mountain in the Asosa Concession in Western Ethiopia in January, 2011 (see Fig 1). No previous modern exploration has been done in this Concession. Work initially done by APM included: stream, soil and rock chip sampling, surface mapping and structural review, satellite imagery review and alteration mapping, geophysics and geological targeting. At Dish Mountain specifically, the soil geochemistry phase of the exploration program defined a number of anomalous gold zones of greater than 100 parts per billion (ppb) of gold in soils over combined area of 3km north- south with widths of 100 to 500m.

Detailed mapping and geophysics identified the host rocks, structures and potential mineralized zones at surface. Surface trenching confirmed the mineralized zones may host potential economic grades of gold. Visible gold was observed in some trench samples. These results validated the commencement of an aggressive Phase 1 drilling program (see Map 1) and 2 further phases have been completed.

Map 1 - Dish Mountain Phase 1 Drill Program

Current drilling has been highly successful; with preliminary gold assay results confirming that significant near-surface gold mineralization is present. New holes (pending assays) continue to show intercepts of visible alteration and potential mineralization. The currently identified mineralized envelope (based on assays, visual logging of drilling, trench data and surface mapping) consists of multiple potential gold mineralized zones over 1.6km strike length. There is potential to extend to the north, south and deeper than the existing drill holes have intercepted to date. In addition to the current drilled area, there are many regionally prospective targets as well that are yet to be drill tested that potentially could contribute to further gold mineralization (see Map 2).

Map 2- Regionally Prospective Drill Targets

  • The area in red represents the 1.6km of drilling at Dish Mountain.
  • Dish Mountain has a number of highly prospective areas to the North and South that have returned elevated gold in soil results to the levels similar to the immediate Dish Mountain area being drilled.
  • Recent work at the 10km long Taro Belt has also returned elevated gold in soils results. Mapping, rock chipping and trenching of the area has confirmed areas of high prospectivity and with the potential of being drilling targets.
  • The Mestefinfin Belt has a number of streams running from the area with artisanal miners panning for gold. Recent exploration in the region has confirmed also anomalous gold in soils and encouraging results in trenching. The Mestefinfin Belt is also approximately 10km long.

Future work will be focused on rapidly developing the Dish Mountain gold project. This will comprise:

  • Compilation of all assay results from 2011-12 to prepare 2013 drill program.
  • Commence metallurigical studies in 2012.
  • Plan the Phase 4 drill program that will extend further north and south, look for deeper gold mineralization plus also infill between existing drill holes to give greater confidence of continuity of the gold mineralization between holes in these areas.
  • Complete the Phase 4 drill program by April 2013 to delineate a resource to an internationally recognized standard as prescribed by the Joint Ore Reserve Committee (JORC) and commence a Scoping Study with an internationally recognized mining consultant.
  • Determine if there is the potential economic gold deposits at Taro & Mestefinfin through a reverse circulation drilling program in late 2012 to be completed in 2013.

Integrity of Assay Results and Quality Assurance and Control Procedures

ASCOM maintains rigorous quality assurance and controls to ensure the validity of all soil geochemistry, drill and trench assay results. All drill samples are subject to strict “Chain of Custody” from the drill to the ALS Chemex laboratory to ensure the integrity of the results. Trench samples are continuous 1m channel samples. Reverse circulation drilling samples are at 1m intervals, a 2kg sample for assay and a bulk split collected via 3-way riffle splitter into plastic bags, (to ensure no sample loss). Samples for assay are sent to ALS Chemex laboratory in Johannesburg, South Africa. ALS laboratories maintain an international accreditation and are recognized as being a reliable assay laboratory for gold and mineral assays by the international exploration and mining industry. All drilling is fully supervised by a dedicated ASCOM rig geologist who continually monitors all aspects of sampling, including sample recovery, rig set-up, total depth drilled, and final collar locations.

Over the 40 years in Asosa, some companies have undertaken gold exploration. In addition, several phases of government and UN field studies over the last 4 decades continued to highlight the gold-rich nature of the area. Alluvial mining for gold continues in the area. However, despite the interest in the Asosa area, to date no large tonnage gold deposits have been found. APM believes that this is primarily due to a lack of systematic modern exploration techniques.

The information in this report that relates to Exploration Results is based on information compiled by Dr Chris Bowden, who is a Member of the Australian Institute of Geoscientists. Dr Bowden is a full-time employee of ASCOM Precious Metals as Exploration Manager. Dr Bowden has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Bowden consents to the inclusion in the report of the matters based on his information in the form and context in which it appears”.

AWERO-GODERE CONCESSION

The Alwero-Godare Concession area is located southwestern Ethiopia 400km from Addis Ababa, in the South Nations and Nationalities Peoples State and Gambella National Regional State, northwest of Mizan Tefari town. The proposed concession area covers 1000 km2 (see Map 2).

The Alwero-Godare Concession area can be reached along an asphalt road from Addis Ababa to Jimma, South western asphalt Highway of Ethiopia. There is about 330 km long asphalt road from Addis Ababa to Jimma and asphalt roads under construction from Jimma to Mizan Teferi through Bonga towns.

There are seasonal gravel and all weather roads within the concession areas.

Mizan Teferi is closest large town with regular flights, telephone, internet, power line, hotels and various other support infrastructure for a modern exploration program.

Satellite imagery work combined with historical data and the presence of significant downstream artisanal alluvial gold miners has identified the Awero-Godere Concession as highly prospective. It is expected in 2012-13 a complete grass roots exploration program will be completed focusing on the already identified anamolous mineralized areas from the Aster satellite imagery. The goal in 2012 and early 2013 is to identify sufficiently attractive targets for trenching and drilling after the wet season in late 2013.

Map 2- Awero-Godere Concession and the Aster Anomalies identified to Date