asx announcement · program completed at lue river’s jasmine prospect earlier this year. results...

An ASX-listed Australian company focused on gold exploration in Ghana, West Africa

Ground Floor, Suite 1 16 Ord Street, West Perth WA 6005 T +61 8 9261 7300 F +61 8 9322 8892 W www.vikingashanti.com

ASX Code: VKA

QUARTERLY REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2012

During the three months to 30 September, 2012, exploration activities were restricted due to the

impacts of the West African wet season. Viking Ashanti received results from nine drill holes on its

Akoase and Blue River gold projects, both located in southern Ghana, West Africa (Figure 1).

Highlights included:

Results from drilling at Akoase and Blue River continue to demonstrate the gold

prospectivity of both projects.

Drilling re-commences at Akoase, targeting down dip extensions of the higher grade gold

mineralization at the Alimac prospect.

Company successfully completes a pro-rata non renounceable rights issue, raising A$1.27 million (before costs).

1. Exploration

1.1 Akoase Gold Project (VKA 100%)

Alimac Prospect Drilling

Assay results have been received from the final six Reverse Circulation (RC) and RC precollar holes

drilled at the Alimac prospect prior to cessation of drilling activities late in May.

Drill holes locations and assay results are summarized in Figure 2 and Table 1 respectively.

Results are from two RC precollars (AKRC24D and 25D) for deeper diamond tails, designed to test

beneath existing shallower, higher grade drill intersections at Alimac. The pre-collared part of

AKRC25D has intersected 16m @ 2.19 g/t Au, which is consistent with an up-dip intersection of 11m

@ 2.06 g/t Au in previously reported hole AKRC 188. The remaining four RC holes form part of a single

line of six RC holes designed to traverse across part of the >50 ppb gold in soil anomaly linking the

Alimac prospect with the Company’s Andy Hills prospect, 2.5km to the northeast. Two RC holes

remain to be drilled to complete the traverse.

ASX Announcement

25 October 2012


Ground Floor, Suite 1, 16 Ord Street, West Perth WA 6005 T +61 8 9261 7300 F +61 8 9322 8892 W www.vikingashanti.com

A new program of approximately 1,000m of diamond and 1,000m of RC drilling commenced at the

Alimac prospect on 12 October. This drilling is targeting down dip and along strike extensions of the

new higher grade zone at the Alimac prospect. Recent drilling has demonstrated that this higher grade

gold zone, currently at shallow depth of less than 100 metres, extends over more than 400 metres

strike length and remains open along strike to the northeast and at depth.

1.2 West Star/Blue River Joint Venture Gold Project (VKA 100% hard rock rights)

Final assay results have been received from samples relating to RC drill holes BRC 98, 100 and 101 at

the Blue River gold project in southern Ghana. These holes formed part of a 28 hole RC drilling

program completed at Blue River’s Jasmine prospect earlier this year. Results for the majority of holes

have been previously reported (refer ASX announcement dated 12 July 2012).

Drill hole locations and assay results are summarized in Figure 3 and Table 2 respectively.

These results, in conjunction with the previously reported results have confirmed historical, broader

spaced drilling at the Jasmine prospect, and have demonstrated that the 17 strike km of the Salman

shear zone held by Viking Ashanti is a prime exploration target for further systematic evaluation.

The West Star and Blue River properties are subject to joint venture agreements with local Ghanaian

companies, where Viking Ashanti has earned 100% of the rights to all hard rock gold mineralization.

2. Corporate and Administration

As at the date of this report, Viking Ashanti has 82.85 million ordinary shares, and 18.68 million

options on issue.

On 24 August 2012 the Company announced the issue of 12,683,913 ordinary shares at an issue price

of A$0.10 upon closure of the Company’s 1 for 4 non-renounceable rights issue to further advance its

gold exploration projects in Ghana, West Africa.

The rights issue was well supported by shareholders with a 73% take up, raising A$1.27 million (before

costs).

In addition, the rights issue subscribers have each been allotted one free option exercisable at A$0.18

on or before 31 August 2014 in accordance with the rights issue terms.

With the current strong gold price and equities interest in West Africa, a number of corporate and

farm-in opportunities for gold projects were reviewed during the quarter. None are currently at an

advanced stage of consideration.

Viking Ashanti continues to pursue an active program of investor and broker presentations and

presented at the Africa Down-Under Conference, in Perth late in August 2012.

Cash reserves at 30 September 2012 were A$1.19 million.



Peter McMickan Managing Director For further information contact: Peter McMickan Managing Director Viking Ashanti Ltd [email protected] 0401 476 266 Competent Persons Statement: The information in this Public Report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Peter McMickan, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr McMickan is a full time employee of Viking Ashanti Limited. Mr McMickan has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr McMickan consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements: This document may include forward looking statements. Forward looking statements may include, but are not limited to statements concerning Viking Ashanti Limited’s planned exploration programs and other statements that are not historical facts. When used in this document, words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward looking statements. Although Viking Ashanti Limited believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward looking statements.

mailto:[email protected]



Figure 1: Viking Ashanti Project Locations, Southern Ghana

Figure 2: Alimac Prospect Drill Hole location Plan



Table 1: Alimac Prospect RC Drilling Intersections

Drill hole Information Mineralized Intercepts

Hole ID Easting* Northing* RL* dip/azim

uth

hole depth

(m)

from (m)

to (m)

intersection width

(m)

grade (g/t Au)

oxidation Comment

AKRC 203 744976 715283 254 -55/140 60 4 6 2 1.15 oxidized

AKRC 204 744946 715296 229 -55/140 66 19 20 1 2.62 oxidized

36 38 2 0.50 fresh

57 58 1 0.59 fresh

63 64 1 0.57 fresh

AKRC 205 744930 715314 273 -55/140 69 18 22 4 1.32 oxidized

49 51 2 1.28 fresh

AKRC 206 744912 715328 263 -55/140 69 7 8 1 1.07 oxidized

62 63 1 0.51 fresh

AKRC024D 744467 714890 307 -50/315 80 45 47 2 1.73 oxidized Precollar

76 77 1 0.91 fresh

AKRC025D 714976 744304 353 -66/140 80 36 52 16 2.19 oxidized Precollar

68 69 1 0.92 fresh

75 76 1 0.83 fresh

*GPS Co-ordinates

The site split RC chip samples (approx. 3kg each) from each hole were collected at 1m down hole intervals, and submitted

to ALS Laboratories in Kumasi, Ghana for gold analysis. The analytical method was 50g fire assay/AAS finish with a 0.01 g/t

Au detection limit. Significant results reported are nominally above 0.5 g/t Au over a minimum down-hole interval of 1

metre, with no top cut applied. Assay quality control procedures included insertion of certified reference standards, blanks

and duplicates. True intersection widths are estimated to be approximately 75% of reported drill intersection widths.



Figure 3: Jasmine Prospect Drill Hole location Plan

Table 2: Jasmine Prospect RC Drilling Intersections

Drill hole Information Mineralized Intercepts

Hole ID Easting* Northing* RL* dip/azimuth

hole

depth

(m)

from (m) to (m) intersection

width (m)

grade

(g/t

Au)

oxidation

BRC098 584907 560800 34 -50/140 60 56 60 4 0.53 fresh

BRC100 584954 560907 39 -50/140 76 5 11 6 1.01 oxidised

13 14 1 0.81 oxidised

22 23 1 0.55 oxidised

BRC101 584903 560900 27 -50/140 54 12 13 1 0.75 fresh

44 49 5 0.53 fresh

*GPS Co-ordinates

The site split RC chip samples (approx. 3kg each) from each hole were collected at 1m down hole intervals, and submitted

to SGS Laboratories in Tarkwa, Ghana for gold analysis. The analytical method was 50g fire assay/AAS finish with a 0.01 g/t

Au detection limit. Significant results reported are nominally above 0.5 g/t Au over a minimum down-hole interval of 1

metre, with no top cut applied. Assay quality control procedures included insertion of certified reference standards, blanks

and duplicates. True intersection widths are estimated to be approximately 80% of reported drill intersection widths.



COMPANY INFORMATION

Directors Australian Stock Exchange Listing

Jack Gardner Non-Executive Chairman Shares VKA

Peter McMickan Managing Director

Trygve Kroepelien Non-Executive Director Capital Structure as at 30 September 2012

Mark Newlands Non-Executive Director Ordinary Shares on Issue 81,850,580

Unlisted Options:

Company Secretary

Michael Langoulant

Options Exercise price 34.5

cents on or before 31 December

2012

6,000,000

Options Exercise price 18 cents

on or before 31 August 2014

12,683,913

Shareholder Enquiries

Peter McMickan

Contact

Telephone: +618 9261 7300

Facsimile: +618 9322 8892

Email: [email protected]

Website: www.vikingashanti.com

Share Registry

Computershare Investor Services Pty Ltd

PERTH WA 6000

Telephone: +618 9323 2000

Facsimile: +618 9323 2033

http://www.vikingashanti.com/



About mining in Ghana Our projects in Ghana

Ghana is an English speaking country located on

the west coast of Africa, which achieved

independence in 1957. Ghana is socially and

politically stable, operates under a well-

established Westminster legal system, has

excellent internal infrastructure with a 25 year

history of modern mining and a substantial

internal skills base to support the resources

sector.

Ghana is a significant gold producer, with 3Moz

gold production in 2011, which ranks #2 in Africa

and #9 in the world. A broad mix of multi-national

mining companies, mid-tier gold producers and

junior explorers operate successfully in the

country.

Akoase Gold Project:

Viking Ashanti’s most advanced project is the

100% owned Akoase gold project, located at the

northeastern end of the Ashanti Gold Belt in

southern Ghana. The project contains an

established near surface Inferred resource of

704,000 oz of contained gold at a 0.5 g/t Au cut-

off at the Akoase East deposit. Viking has

completed 8,000 m of RC drilling and 3,000 m of

diamond drilling at Akoase since acquisition, and

drilling is ongoing to the northeast and at depth to

extend the known mineralized zones.

West Star/Blue River project:

Viking’s other major area of interest is the West

Star/Blue River project, located adjacent to the

Adamus’ 2 million ounce Nzema gold mine at the

southwestern end of the Ashanti Gold Belt in

southern Ghana. Viking has 100% interest in the

hard rock rights of the licences. Extensive soil

geochemistry and drilling programs have been

completed, identifying the 17 strike km of the

Salman shear zone as a prime exploration target.

Appendix 5B Mining exploration entity quarterly report

+ See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 1

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

VIKING ASHANTI LIMITED

ABN Quarter ended (“current quarter”)

126 200 280 30 September 2012

Consolidated statement of cash flows

Cash flows related to operating activities

Current quarter $A’000

Year to date (3.months)

$A’000 1.1 Receipts from product sales and related

debtors

1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration

(305) - -

(253)

(305) - -

(253) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature

received 2 2

1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other (provide details if material) - -

Net Operating Cash Flows

(556)

(556)

Cash flows related to investing activities

1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets

- - -

- - -

1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets

- - -

- - -

1.10 Loans to other entities - - 1.11 Loans repaid by other entities - - 1.12 Other (provide details if material) - -

Net investing cash flows -

-

1.13 Total operating and investing cash flows (carried forward)

(556)

(556)


+ See chapter 19 for defined terms. Appendix 5B Page 2 17/12/2010

1.13 Total operating and investing cash flows

(brought forward)

(556)

(556)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. 1,268 1,268 1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from borrowings - - 1.17 Repayment of borrowings - - 1.18 Dividends paid - - 1.19 Other ‐ capital raising costs (42) (42) Net financing cash flows 1,226 1,226

Net increase (decrease) in cash held

670

670

1.20 Cash at beginning of quarter/year to date 532 532 1.21 Exchange rate adjustments to item 1.20 (12) (12)

1.22 Cash at end of quarter 1,190 1,190

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

Current quarter $A'000

1.23

Aggregate amount of payments to the parties included in item 1.2

161

1.24

Aggregate amount of loans to the parties included in item 1.10

1.25

Explanation necessary for an understanding of the transactions

Non‐cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on

consolidated assets and liabilities but did not involve cash flows

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest



Financing facilities available Add notes as necessary for an understanding of the position.

Amount available $A’000

Amount used $A’000

3.1 Loan facilities

3.2 Credit standby arrangements

Estimated cash outflows for next quarter

$A’000 4.1 Exploration and evaluation

100

4.2 Development

4.3 Production

4.4 Administration

150

Total

250

Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Current quarter $A’000

Previous quarter $A’000

5.1 Cash on hand and at bank 1,190 532

5.2 Deposits at call

5.3 Bank overdraft

5.4 Other (provide details)

Total: cash at end of quarter (item 1.22) 1,190 532

Changes in interests in mining tenements Tenement

reference Nature of interest (note (2))

Interest at beginning of quarter

Interest at end of quarter

6.1 Interests in mining tenements relinquished, reduced or lapsed

- - - -

6.2 Interests in mining tenements acquired or increased

- - - -


+ See chapter 19 for defined terms. Appendix 5B Page 4 17/12/2010

Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. Total number Number quoted Issue price per

security (see note 3) (cents)

Amount paid up per security (see note 3) (cents)

7.1 Preference +securities (description)

7.2 Changes during quarter (a) Increases through issues (b) Decreases

7.3 +Ordinary securities

81,850,580 69,550,580


12,683,913

12,683,913

$0.10

$0.10

7.5 +Convertible debt securities (description)


7.7 Options (description and conversion factor)

6,000,000 12,683,913

- -

Exercise price $0.345 $0.18

Expiry date 31/12/2012 31/08/2014

7.8 Issued during quarter

12,683,913 - $0.18 31/08/2014

7.9 Exercised during quarter

7.10 Expired during quarter

7.11 Debentures (totals only)

7.12 Unsecured notes (totals only)



Compliance statement 1 This statement has been prepared under accounting policies which comply with

accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

2 This statement does /does not* (delete one) give a true and fair view of the

matters disclosed.

Sign here: Date: 25 October 2012 Director

Print name: Michael Langoulant

Notes 1 The quarterly report provides a basis for informing the market how the entity’s

activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of

interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not

required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of

Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International

Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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asx announcement · program completed at lue river’s jasmine prospect earlier this year. results...

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