Goldax mining work for 2020 will continue to focus on the Company’s flagship Gyampomani Osino gold project located in Fanteakwa District in the Eastern part of Ghana with more target definition and drilling. Results to date have been highly successful, confirming district-scale gold discovery potential.

The economic assessment of Gyampomani concession has been based on the mineral prospecting work by GOLDAX Ghana Limited and data acquired from the current Test Mining activities on 22.03-acre mining plot, within the concession. Further exploration work is needed to acquire sufficient data to enables good understanding of the geological materials and structures that determines the mineral resource potentials of the concession.

The evaluation of the exploration and mining data and field evidence obtained show that alluvial gold bearing gravel beds occur in the valleys and old terraces within the Concession. Total of 0.89 km2 has been delineated for alluvial gold mining from gold bearing gravels. Twelve prospecting pits have been dug and analyzed. The buried gravel beds have an average thickness of 1.1m and have lateritic soil overburden with average thickness of 1.37m. The estimated resource of gold deposits in the gravel beds in the Concession is 11,689.58 oz.

The alluvial mineral deposits can conveniently be exploited through open-pit mining and treatment of the un-consolidated ore-bearing gravels with water-driven washing plant (no chemical is needed in the processing), having a capacity of 100m3 per hour, with a double shift system working eight (8) hours per shift. The projected mine life of the current delineated alluvial deposit is calculated to be 1.18 years.

Test Mining was commissioned by Goldax in 2019, on a 22.03-acre (0.09 km2) mining Lease. The Test Mining lasted 38 days (in July, August & October), with average daily production of 129.81 grams (16.23 pounds) with highest daily production of 378.6 grams (47.325 pounds). The total Gold (Au) extracted during the Test Mining is recorded as 4932.62 grams (616.5775 pounds). This means that the mining of the alluvial mineral deposits in the Gyampomani Concession by open pit method could be implemented as it will be an economically profitable venture.

Goldax Ghana Limited is guided by its sustainability policy and a comprehensive Environmental and Social Management Program (ESMP). Both Community Health and Safety (CHS) and Occupational Health and Safety (OHS) are managed by its Corrective Action and Preventative Action (CAPA) register. This ensures that our environmental and social aspects, during exploration and mining, are managed according to Ghana standards and regulatory requirements, as well as international best practices. In particular our carbon footprint and biodiversity conservation.

The project is underexplored in terms of modern exploration with no property wide geology, geochemistry or geophysics done. Based on the extent and the high-grade of the mineralization in historic surface, the high-grade nature of historic gold production, the project represents a unique opportunity to explore and develop a district scale, near surface, potentially high-grade gold deposit in multiple target areas across the property with small scale gold recovery potential from the current permits in place for test mining.