Canada’s Asante Gold (TSXV: ASE; US-OTC: ASGOF) has begun operations of the processing plant and associated equipment at its Bibiani gold mine in Ghana.
The gold exploration and development company plans to carry out a 14-day evaluation period during which it will control, calibrate operating systems and align critical equipment “under full load.”
Bibiani, which Asante acquired last year from Australia’s Resolute Mining (LSE: RSG; ASX: RSG), will become a 24 hour/day operation after the trial period.
The Vancouver-based miner said the mining program for the past-producing mine is on track, with material movement running at 6 million tonnes per month and first gold pour expected in the third quarter of the year.
Bibiani has previous production of over 4 million ounces of gold. (Image courtesy of Asante Gold.)
Asante aims to produce about 175,000 oz. of gold in the first 12 months of operation, ramping up to 220,000 oz. annually in the second year and 200,000-255,000 oz. a year for years three to eight.
“We are pleased that our refurbishment efforts at the Bibiani gold mine have been delivered ahead of schedule,”president and chief executive Dave Anthony said in the statement.
Based on an updated feasibility study released by Resolute in July 2018, Bibiani has the potential to generate about 100,000 oz. of gold per year over a 10-year mine life at a life-of-mine all-in sustaining cost of US$764 per ounce.
The company also reached another milestone this week as it completed the acquisition of Chirano gold mine from Kinross Gold (TSX: K; NYSE: KGC).
The open pit and underground mining operation in southwestern Ghana is located immediately south of Bibiani.
Last year it churned out 154,668 gold-equivalent ounces, compared to 166,590 in 2020.
Asante Gold has strong ties to Ghana, with Ghanaian citizens holding a significant shareholding, as well as board and executive roles.
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