About Ghana

Ghana

• Long history of established mining, relatively stable legal system & English speaking.
• Economy has rapidly grown and developed.
• Second largest African gold producer – 2.97Mozs production in 2011. Major gold deposits in country, and many significant gold discoveries to date.
• New mines developing in country e.g. Perseus.
• All major gold mining companies active in Ghana and many mid-tier and juniors.

Ducie Project, Ghana

• 1,100km² (granted and yet to be granted) licences in prospective gold province, which the Company, through its wholly owned foreign subsidiary, MGS Ghana Limited, has a right to acquire.
• High-tenor geochemical anomalies.
• Artisanal workings, no previous drilling.
• Under-explored region of NW Ghana – activity on neighboring ground has uncovered new gold discoveries (ASX – Castle Minerals Ltd, Azumah Resources Ltd)
• Geochemical anomalies highlight major structures and targets remain open in all directions.
• Licence areas noted above contain more than 75km strike of Birimian greenstone belt
• Aeromagnetic data highlights major structural control
• Geochemical anomalies remain open along strike with wide-spaced sampling returning results up to 150ppbAu
• Exploration required is geological mapping and anomaly definition to prepare for first pass drilling program

  The Ducie Project covers an area of approximately 1,126km²and is located in the Upper West Region of Ghana, approximately 525km northnorthwest of the capital city Accra.

The capital of the Upper West Region is the town of Wa, with a population of approximately 50,000, and the Ducie project is located approximately 75km east of the town.   Access to the Ducie project area is via good bitumen road from Accra to Wa and from Wa via good all-weather gravel road and other gravel roads of variable quality.

Access within the project area is via gravel roads and numerous dirt roads (that may become impassable during wet conditions) and footpaths.   The township of Wa has an excellent all-weather airstrip suitable for chartered light aircraft.  No commercial flights operate on a regular basis to Wa.

The concession area falls within the tropical humid moist savannah climatic region. Rainfall is typically in the range of 1000 to 1250mm/year with a rainy season usually from May to October with a peak in August.  The concession has a relatively subdued topography.

Generally, the north area is relatively flat with remnants of a dissected peneplain at about 350m ASL and most areas being about 300 – 350m ASL. The lowest elevations are along the Kulpawn River at about 180m ASL.

Ducie project

In the entire concession, a dendritic pattern of intermittent streams drain into the more major tributaries, which discharge into the Kulpawn, Kudage and Grogro, the major Rivers that drain the concession area.

The main drainage direction is to the southeast.  Quite a good number of streams exhibit NE, N-S and E-W drainage directions.   Ducie project is a very large under-explored Birimian greenstone belt bounded by major regional scale structures and as such represents a very attractive grass roots exploration target.

The project is regarded as a greenfields exploration project with very limited historical exploration. The wide-spaced regional geochemical sampling completed by Castle Minerals Limited in 2007 and 2008 is the first documented exploration over the project area. This work has highlighted areas that require immediate follow-up exploration as well as confirm the prospective nature of the geological setting to host significant gold mineralisation.

The proposed exploration strategy is well focused and appropriate for the exploration level of the projects, geological setting and regolith environment present. The expenditure is appropriate given the prospectivity of the area and is sufficient to achieve the stated objectives of providing sufficient geological data to rapidly assess the projects, delineation of drilling targets. The budget is weighted towards auger geochemical sampling and reconnaissance drilling as appropriate for this stage of exploration.

It should be noted that if encouraging results are returned and more RC drilling is required to delineate potential Mineral Resources, additional funds will be required.   The following exploration methodology is recommended, and it is noted that these recommendations are consistent with the proposed exploration program:

• Systematic mapping and sampling of outcrops.
• Auger geochemical sampling, with a focus on the delineation of existing gold anomalous zones at Yala, Sombisi and Katua
• Geochemical sampling of the broader licence area to define new areas of gold anomalism
• First pass RAB drilling of priority targets to determine potential for primary gold mineralisation
• Reconnaissance RC drilling in areas of gold mineralisation.