Asante Gold grows Bibiani output with third satellite pit

Asante Gold (CSE: ASE) has begun mining from the Russel starter pit at its Bibiani gold mine in Ghana, after receiving all necessary permits earlier this week. The company is trucking the ore to the Bibiani process plant 3.8 km away.

Russel represents the third satellite pit Asante’s put into production since acquiring the Bibiani properties from Australia’s Resolute Mining in 2021. The deposit has 119,000 oz. of measured and indicated gold resources at a grade of 1.8 grams per tonne, with mineralogy similar to the Bibiani main pit, which the company rebooted in 2022.

Bibiani is expected to produce 85,000 oz. to 95,000 oz. gold in the year ending next March. It’s Chirano mine, just south of Bibiani, is forecast to produce 150,000 oz. to 165,000 oz. in the same period.

Over the next 30 months, the Russel pit is expected to deliver a total of 1.9 million tonnes at 1.62 grams gold per tonne to the Bibiani process plant, supplementing production from the main pit oxides, said Asante, adding that oxides from the pit are expected to yield 90% gold recovery.

“The start of production at Russel represents another successful milestone on our journey to grow Asante’s production to more than 500,000 ounces by 2028,” Asante’s CEO Dave Anthony said in a news release.

“Approval for mining at Russel follows other major catalysts, including the re-routing of the Bibiani-Goaso highway, which will allow us to access additional oxide mineralized material, and further progress on the construction of the Bibiani sulphide treatment plant,” he added.

The company is also working to expand known resources at Russel down plunge and along strike to the south. Current drilling is anticipated to upgrade inferred resources and confirm its suitability for underground mining, it said, adding it will conduct a preliminary study into the potential transition to underground.

The combined gold resource of the Bibiani properties is currently estimated at 2.5 million oz. in the measured and indicated categories and 1.1 million oz. in the inferred category. This includes nearly 2 million oz. in proven and probable reserves.

Shares of Asante Gold rose 4.5% to $1.38 a piece on the latest development, giving the Vancouver-headquartered miner a market capitalization of $614.6 million.