Investing in Westminster Development Ltd
1.00 LOCATION, SIZE AND ACCESSIBILITY
The Anyinamaso No. 2 Gold Concession of Westminster Developments Limited is located in F. S. 0602 A3 (F. S. 125) in the Atwima-Mponua District of the Ashanti Region of Ghana. The concession lies at about 8 km from Nkawie when coming from Kumasi towards Bibiani. The concession is on one of the main Geological Gold mineraisation zones of Ghana.
The existing concession covers a total surface area of about 35.014 km2 and its boundaries are generally defined by latitudes 6o 34’ 30’’ and 6o 40’ 0’’ N; and longitudes 1o 53’ 28’’ and 1o 53’ 28’’ W (Fig. 1).
The environment of the concession has a good road network. The concession is easily reached by the main road connecting Kumasi and Bibiani. Some of the towns and villages in the concession comprise Anyinamaso No.2, Kwanfinfi, Betnko Nkromma and Pakyi Nkroma. The inhabited parts of the property can be reached by feeder roads, bush paths and hunters’ trails.
Nkawie and Toase (Not shown in map) are the major towns that lie in closest proximity to the concession where electricity supply, schools, telecommunication and health facilities are available.
1.1 Shedding – off 8.764 km2
In accordance with the Minerals and Mining Law, we have proposed to Shed – Off 8.764 km2 of the concession and retain 26.25 km2 for renewal of the Prospecting Licence. The area shedded – off and the retained area is as per Figure 1 below;
2.0 RC DRILLING
A total of 12 RC holes were drilled giving 798 meters. The holes range in depth from 50 to 86 meters. The drilling records are shown in Table 1.
The aim of the drilling was to test mineralisation below the trenches in the Kantinkyeren area. Some of the holes could not reach their planned depths because of bad ground and faulty drill rig. This program will be revisited.
Every meter drilled was collected and portions of the hole to be assayed are put through a riffle splitter and part of the half split put in a small 31 x 38 cm plastic bag, which is labeled before the drilling of the hole, and sealed with cellotape. The other half is put in a large 60 x 75 plastic bag which bears the same sample-id as the small bag for storage. The samples for assay are collated hole by hole and sent to the lab. Wet samples are collected in sacks and put down to dry up.
|S003||76 – 86||10m/1.94 g/t||(2m/6.11g/t)|
|S004||13 – 15||2m/2.87 g/t||(1m/5.58g/t)|
|17 – 26||9m/1.13 g/t|
|S008||2 – 3||1m/11.89g/t||(1m/11.89g/t)|
|S011||9 – 11||2m/0.84 g/t|
|31 – 36||5m/0.78 g/t||(1m/7.12g/t)|
|60 -75||15m/1.64 g/t|
|S012||61 – 63||2m/1.47 g/t|
The intersections made range in thickness from 2m to 15m, with grades ranging from 0.8 to 11.89 g/t as indicated in the table above. There are spikes of high grade in the intersections which are indicated in the second column of the 777 intersections.
These intersections have shown a good indication of mineralization in the property. However the drilling did not cover sufficient ground and so the result is not conclusive of the extent of mineralization in the area under investigation. Further work will be undertaken in the period of the renewal of the license.
Sections of the drilling results are shown below. Rocks intercepted in the drill holes agree with those encountered in trench and field mapping in the area.
The Company plans to continue with its trenching programme with the aim of investigating the strike continuity of the ore zones intersected in the trenches dug to date. Based on the additional results obtained, the Company will be in the position to identify the targets for Reverse Circulation (RC) or Diamond Core drilling programme.
5.0 DRILL HOLE SECTIONS
6.0 EVALUATION OF RESULTS
Sections from the drilling results indicate there is mineralisation in the property. The drilling however did not cover sufficient ground and so the result is not conclusive of the extent of mineralisation on the property.
The Company plans to continue with its trenching programme with the aim of investigating the strike continuity of the ore zones intersected in the trenches dug to date. Based on the additional results obtained, the
Company will be in the position to identify the targets for Reverse Circulation (RC).
7.0 INVESTMENT PROPOSAL
Our proposal is to lease the WDL Exploration licence and concession to a prospective investor for an initial exploration period of 3 years (with the option to renew for life of the mining lease up to 20 years) on the following terms;
a) Initial US$1,000,000 Investment
This US$1,000,000 Investment will be used as follows;
- Commitment Fee of US$100,000 payable to existing owners of concession payable on execution of lease agreement.
- Geological Consultants appointed by the investor to drill additional 50 Reverse Circulation (RC) holes at 80 metres depth on average at total cost of US$680,000
- Assay of 4000 drill samples at SGS for US$70,500.
- Additional trenching and assays at SGS cost is US$70,000.
- Estimated operational costs and Geological Consultancy Fees for six months US$75,000.
Total cost for six months to drill 50 additional RC holes and operational costs for the six months period is US$995,500 (Nine Hundred and Ninety – Five Thousand, Five Hundred United States Dollars).
- The Investor will appoint Geological Consultants to carry out the drilling.
- After drilling the additional 50 RC holes, (total holes drilled will be 62) the initial gold reserves will be estimated by Independent consultants.
- Subject to satisfactory assay results and estimation of initial gold reserves from the 62 RC holes, the WDL will lease the Exploration
Licence and Mining Concession to the investor on the following terms;
- Initial premium payable to owners of the WDL Concession US$5,000,000 to US$7,500,000 depending on the initial gold reserves estimated by Independent consultants.
- Royalty payment to WDL owners when investors obtain Mining Lease and commence mining of gold is US$10 per every ounce of gold produced. This Royalty of US$10 per ounce will be paid to the owners of WDL throughout the mine life.
- Existing owners of WDL will appoint one person to the Board of Directors of the operating company to be set up by the investor company.
- The existing owners of WDL will facilitate with the Government of Ghana for all future Government approvals.