Asante Gold Corporation has set Q3 2022 for its first gold pour at the Bibiani mine with the aim to produce approximately 175,000 oz of gold in its first 12 months of operation, and thereafter produce 220,000 to 270,000 ounces every year for a minimum of 7 years.
Currently, the company is fast-tracking processes to meet this target by commencing its open pit mining activities at Bibiani, following the receipt of the Company’s updated Environmental and Mine Operating Permits.
Progress on the open pit mining activities has been focused on the delivery of ore from the Strauss and Walsh satellite pits. Several other operations including the no.1 Cutback at the Main Pit have also started. The refurbishment of mine haulage roads, safety berms, waste dumps and mining benches are also far advanced with first ore delivered to the Run of Mine Pad, more than one month ahead of schedule.
The receipt of these permits follow a thorough process of scoping studies and a detailed review of the Environmental Impact Study, public consultation and review of mine operating plans, the company said. The permits provide for all aspects of the Bibiani Mine development, including operation and expansion, re-alignment of the National Highway, management of water and tailings, transport and utilization of explosives, mining and processing.
Commenting on this development, Douglas MacQuarrie, President & CEO of Asante Gold, stated:
“Re-start of open pit mining at Bibiani after 17 years of restructuring and development marks an exciting milestone for Ghana, for Asante and especially for the community. We thank the Ghana Environmental Protection Agency and Minerals Commission, and the Chiefs and local communities for their overwhelming support and commitment to the Bibiani Mine Project and the approval of our permits.
“When we purchased the asset in late August 2021, we were reminded that ‘Bibiani is the mine and the mine is Bibiani’, with a history of more than 100 years of peaceful and mutually profitable co-operation. We are excited and humbled to have earned the opportunity to bring this high-grade Ghanaian gold mine back to production and add to the near 5 million ounces of historical production.”
Douglas MacQuarrie, CEO
Dave Anthony, COO of the company, added: “All activities and initiatives needed to bring the Bibiani Mine to production of gold at Q3 2022 are on track.“
Other Contractors Engaged to Work on Mine Site
In December 2021, PW Mining (Ghana) was selected as the Mining Contractor for the mine operations at Bibiani. Mobilization and site establishment accelerated into February 2022 and is currently two months ahead of schedule, such that more than 75 items of heavy equipment and maintenance facilities are now at site. The full fleet for open pit mining will eventually grow to 130 units, to enable treatment of 3.0 million tonnes per annum (Mtpa).
Furthermore, Process Plant refurbishment is on schedule and on budget, with more than 60% of the scheduled work complete and all work activities are proceeding as planned. Principal equipment drives were taken off site in 2021, to be serviced as needed and are now being returned to site for installation.
Likewise, electrical components, instrumentation and control systems have been tested and are being upgraded as needed, to provide improved performance, relative to the original design, the company said. As part of these efforts, the company has also purchased and installed an up-to-date Knelson 6G concentrator and Gekko ILR (intensive leach reactor), with gravity recovery circuit being upgraded to “model year 2021” level of competence and automation.
Local sub-contractors have been engaged to proceed with earthworks, metal and pipework repair, painting, installation of liners and belts, in order to ensure a safe and efficient operation. Equipment that was purchased, but not made operational by the former owners, is being made ready for commissioning and operation. As of mid-February 2022, there were more than 900 contractors and employees working at the process plant site.
Asante Gold is planning to initiate development of an underground mine design at the PEA level of study in Q3 2022, with a view to developing an underground mine operation from 2026. This will provide significant overlap with open pit mining operations, which are currently scheduled to proceed into 2029.
The company has been focused on financing operations, for which reason, it recently raised capital for its operations through private placement of common shares which achieved massive subscription of more than C$100 million over a short period. Based on an earlier report, the subscribers include the Ghana Minerals Income and Investment Fund (MIIF) and Emiral Resources Limited.
READ ALSO: The Cedi May Never Recover This Year From Current Bouts of Depreciation- Analyst
