Hamak Strategy Ltd has signed a significant contract to commence a reverse circulation drilling programme at its Akoko oxide gold project located in southwest Ghana. This initiative aims to enhance the existing mineral resource estimates and pave the way for further development of the site.
The initial programme consists of 4,125 meters of reverse circulation drilling, targeting key areas of the deposit. Specifically, this drilling will focus on the top 80 meters of the deposit, where a non-JORC mineral resource estimate of over 250,000 ounces of gold has previously been identified.
Following the completion of the drilling, Hamak intends to engage an independent consultant to restate the resource estimate in accordance with JORC standards. This updated estimate will be critical in conducting a Preliminary Economic Assessment (PEA) for the potential establishment of an open-pit gold mine at Akoko.
Hamak has partnered with Deeprock (GH) Limited, a drilling company with extensive experience in Ghana to undertake this programme. In addition, the company has strengthened its operational capability in the region by appointing seasoned local geologists and finance consultants, ensuring effective project management and compliance with local regulations.
The upcoming drilling activities, set to begin mobilization in April, coincide with the company's broader strategic vision to enhance the project's value and viability. The results of the drilling and subsequent assessments will guide Hamak’s decision on whether to exercise its option to acquire the Akoko gold project, which has a valuation of approximately US$10 per ounce based on current resource estimates.
Hamak Strategy Ltd has signed a significant contract to undertake a 4,125m reverse circulation drill programme aimed at upgrading the existing mineral resource estimate of over 250,000 ounces of gold. This progress suggests a proactive approach to enhancing the project's value.
The drill programme aims to infill and potentially expand the existing non-JORC mineral resource estimate, which could lead to the establishment of a maiden independent JORC compliant resource. This could enhance investment confidence in the project.
Located on the renowned Ashanti Gold belt, the Akoko project is in close proximity to numerous large-scale gold mines. This favourable geological setting bodes well for the potential success of the project, enhancing its attractiveness to investors.
Following the drilling, Hamak Strategy plans to engage an independent consultant to update the resource estimate to industry standards and conduct a Preliminary Economic Assessment, which will evaluate the economic viability of an open-pit mining operation.
The acquisition consideration of approximately US$10 per ounce based on the current non-JORC resource, coupled with the initial cash and share payment structure, may present an appealing investment opportunity, particularly if resource estimates improve.
Hamak has bolstered its in-country capabilities with the addition of a senior Ghanaian finance and administration consultant and a skilled team of geologists, further strengthening its operational expertise in the region.
Drilling preparations are set to commence shortly, with the mobilization of the drilling rig planned for April. Stakeholders can expect updates following the completion of the drilling and resource assessment activities.
Positive results from the drilling programme and subsequent resource assessment could significantly enhance Hamak's market valuation, potentially unlocking value for shareholders as confidence in the project increases.