By: Mining.com

Hamak Strategy (LSE:HAMA) has signed a contract with Deeprock to undertake an initial 4,125m reverse circulation drill program at the Akoko Oxide Gold Project in southwest Ghana.

The program will aim to upgrade Akoko’s non-JORC 250,000 ounce mineral resource estimate (MRE). The updated MRE will be used in a planned Preliminary Economic Assessment (PEA), which will assess the economics of a low-cost open-pit heap leach gold mine at Akoko.

Hamak says the resource and PEA results will also support its decision on whether or not to exercise its option to acquire the project. The acquisition consideration comprises US$1.9 million ($2.7 million) in cash and £1 million worth of shares.

Preparations for the drill program are anticipated to begin shortly, with access to the project and drill pad preparations made, in advance of planned mobilisation of the drill rig in April.

In support of these activities, Hamak’s partner CAA Mining has submitted necessary applications for the required environmental and operating permits.

CEO Karl Smith says the Akoko Project is located on the Ashanti Gold Belt and is in proximity to numerous multi-million ounce gold mines and deposits.

“Following the positive completion of our due diligence process, we have moved quickly to secure a drilling contractor to undertake an initial 4,125m resource confirmation drilling program,” Smith says.

“The drilling will target the top 80m of the deposit from which previous drilling identified an MRE of over 250,000 ounces of gold, largely in the oxide zone.

“We believe that the Akoko Oxide Gold Project represents a potential deep value opportunity for Hamak and we are hopeful our proposed exploration programs will deliver positive results and unlock significant value.”

Hamak Strategy is a gold explorer focused on discoveries in Africa, with a digital asset treasury management strategy.