The Konongo Gold Project, Ghana – An Example of How Geology Makes All the Difference to a Resource Estimate

The Konongo Gold Project is located on the western margin of the 125 Moz Ashanti Gold Belt in Ghana, West Africa. It is situated 60 km along strike of the world-class mineral system at Obuasi and is interpreted to lie on the same controlling regional shear system.The project is operated by Signature Metals, a subsidiary of the Liongold Corporation, and is managed and funded by the Liongold Corporation.Historic underground operations at Konongo produced 1.6 Moz Au at a head grade of 11.8 g/t Au, from eight operations spread along 16 km of the shear system. Mining focused almost exclusively on free-milling gold in quartz, ignoring the gold-bearing sulfide mineralisation associated with the quartz veins. Underground mining ceased in 1986.In 2013, Signature Metals re-focused the program at Konongo to assess the viability of mining the sulfide ore sustainably. This led to the first campaign review of the historic underground data and resource potential since mine closure. The Obenemase mine was the first of the eight operations to be assessed as part of this campaign.Large amounts of legacy data have survived for Obenemase and several historic resource estimations have been completed based on these data. The data typically consisted of hand-drawn sections and plans, and ledgers of commonly incomplete drilling and sampling data. Some drill core have been lost over time, but a large amount of quarter-core and half-core as well as pulps and rejects are still available. Previous resource estimates had a low confidence value because all the available assay and geological data were integrated effectively with the estimates, resulting in a lack of understanding of both grade and geological continuity.This project built a new geological model for Obenemase that greatly enhances the understanding of the controls on mineralisation using a thorough approach of re-surveying, re-cataloguing and re-logging. This model led to an increased degree of confidence and a subsequent upgrade of resource classification, and created several previously unrecognised strong exploration targets. The resulting resource estimates increased the value of the project by 100 per cent.This paper emphasises and highlights the importance of a well-understood geological model on the confidence of a resource estimate and how this may directly impact on the project’s ‘bottom line’.CITATION:Sterk, R and Reid, B, 2014. The Konongo Gold Project, Ghana – an example of how geology makes all the difference to a resource estimate, in Proceedings Ninth International Mining Geology Conference 2014 , pp 467–476 (The Australasian Institute of Mining and Metallurgy: Melbourne).