The company racked up 1.55 million oz. in gold production for the year (a 32% increase over 1.2 million oz. in 1997), whereas fourth-quarter production reached 421,573 oz. (a 37% increase over the last three months of 1997).
Cash costs between the two years fell 14%, to US$218 from $254 per oz., whereas cash costs for the recent fourth quarter were US$208 per oz., or 11% better than in the year-ago period.
More than half the year’s production came from the Obuasi complex in southern Ghana, where the company produced 885,342 oz. gold.
The Bibiani and Siguiri mines in Ghana and Guinea, respectively, both turned in strong fourth quarters, helping to pull down cash costs.
Bibiani produced 151,727 oz. at a cash cost of US$180 per oz. for the year, despite power rationing during the second quarter. The mine, which Ashanti commissioned ahead of schedule, exceeded its production target of 120,000 oz.
The Siguiri mine, also commissioned ahead of schedule, cranked out 193,879 oz. at US$162 per oz. for the year. Its target was 160,000 oz.
In the fourth quarter, Ashanti started the second phase of construction at the Siguiri mine, in which it owns an 85% interest. It plans to double capacity to 8 million tonnes per year to produce 250,000 oz. annually. The company is installing crushing and conveying equipment, as well as upgrading the plant. The expansion is to be completed by year-end.
Meanwhile, at the Geita project in Tanzania, Ashanti has recalculated reserves as a part of a feasibility study. Using preliminary pit designs and assuming a US$300-per-oz. gold price, the company came up with 3.8 million oz. gold in 33.7 million tonnes grading 3.5 grams per tonne.
Ashanti also completed infill and downdip drilling on the company’s main deposit, as well as on the ground acquired from Samax Resources late in 1998. The resource of the combined property now stands at 55.3 million tonnes grading 3.9 grams gold per tonne. Nearly 70% of the resource is on Ashanti’s original ground.
Ashanti estimates capital costs for Geita will reach US$137 million. Construction should be completed by mid-2000, and the mine is expected to produce 400,000 oz. gold annually.
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