#Hamak Strategy Secures Drilling Contract for Akoko Gold Project
Hamak Strategy Ltd has announced the signing of a significant contract to conduct a 4,125-meter reverse circulation (RC) drilling program at its Akoko oxide gold project located in southwest Ghana. This initiative is part of the company’s efforts to upgrade its existing mineral resource estimates and lay the groundwork for further project development.
The RC drilling program aims to enhance the current non-JORC mineral resource estimate of over 250,000 ounces of gold, targeting the upper 80 meters of the gold deposit. The company plans to deploy approximately 72 drill holes, each angled at 50 degrees, to confirm and potentially expand the existing resource.
Prior to the commencement of drilling, Hamak has submitted necessary applications for environmental and operational permits through its partner, CAA Mining. Mobilization of the drilling rig is set to start in April, with access preparations for the project already underway.
The results from the drilling will be integral to developing a Preliminary Economic Assessment (PEA), which will evaluate the feasibility of establishing a low-cost open-pit gold mine at Akoko. The PEA is expected to assess critical factors such as capital and operating costs, potential gold production, and cash flows, guiding future investment decisions.
Located on the renowned Ashanti Gold belt, which hosts numerous lucrative gold mines, the Akoko project represents a significant opportunity for Hamak Strategy. With the recent strengthening of its in-country team, including the recruitment of seasoned geologists and financial consultants, the company aims to enhance its operational capabilities in the region.
The 4,125m reverse circulation drill programme aims to upgrade the existing non-JORC mineral resource estimate of over 250,000 ounces of gold. This step is crucial for confirming the resource and potentially increasing its validity, which could enhance the project's attractiveness to investors.
The PEA will evaluate the economic viability of establishing a low-cost open-pit heap leach gold mine at Akoko. By estimating capital and operating costs as well as potential production, the PEA will provide critical data to inform investment decisions.
Hamak Strategy has strengthened its in-country capabilities by appointing experienced professionals including a senior finance and administration consultant and a team of skilled geologists. This local expertise is vital for the successful execution of exploration and development activities.
The Akoko project is strategically located on the renowned Ashanti Gold belt, which hosts numerous high-value gold mines. This geographical advantage enhances its potential for resource development and can attract further interest from investors.
Post-drilling, Hamak intends to engage an independent consultant to prepare a JORC-compliant mineral resource estimate. The results will inform the decision on whether to exercise their option to acquire the project.
The drilling programme is set to commence with rig mobilisation in April, with the aim to complete the programme efficiently. Results from the drilling and subsequent assessments, including the PEA, are expected to inform strategic decisions within the year.
The acquisition consideration amounts to US$1.9 million in cash and £1 million in shares, which translates to around US$10 per ounce of gold based on the current non-JORC resource. This structured approach aligns investor interests with the potential value of the project.
The submission of environmental and operating permit applications is a critical step that demonstrates regulatory compliance and commitment to responsible exploration. Obtaining these permits will facilitate the timely progress of drilling operations and further exploration activities.