Asante Gold Corporation has announced contracting Harlequin International to kick start the refurbishment of its newly acquired Bibiani gold mine.

This is part of a series of plans outlined to fast-track the production and development of the Bibiani gold mine, Asante Gold hinted.

According to Asante Gold, which completed the acquisition of Bibiani gold mine from Australia’s Resolute Mining in mid-August, 2021 Harlequin International, a Ghanaian company has already began processes to revamp its 3 million-tonne per year processing plant.

The Biabiani gold mine’s refurbishment is expected to employ up to 300 people. The scope of worker engagements including sub-contractors will come to an end after 9-months. Thus, the anticipation is that the project will be completed in June 2022.

Furthermore, Asante Gold noted that it was laying out processes and working on design and planning initiatives for other aspects of the Bibiani mine development project.

Commenting on this development, Douglas MacQuarrie, President and CEO indicated:

“I am impressed by the quality of people, resources and record of success in the mining business that Harlequin brings to this project. Asante looks forward to working with Harlequin and all of our project partners, towards a safe and successful project execution.

“Works have already commenced on site. Design and planning initiatives for other aspects of the Bibiani Mine Development Project continue to advance in accordance with our previous communications.”

Asante Gold Corporation acquired Bibiani gold mine at a cost of US$90 million which it raised from issuing 74,650,000 subscription receipts at US$1 per subscription receipt.

Thus, this major move by Asante is to reopen the currently halted operation, which has had several setbacks, including the termination of the lease of its former operator, Resolute Mining. Dating back to the company’s first operations, it went through a stop-start process as it was suspended in 2013, the year then-owner Noble Mineral Resources collapsed.

Resolute Mining prior 10-year development plan for Bibiani mine

In 2014, Resolute Mining acquired Bibiani gold mine but shortly afterwards placed it on care and maintenance.

The aim was to allow exploration activities and develop the mine into a large-scale operation. The asset has mining and processing infrastructure and past production of about 4 million ounces of gold.

That notwithstanding, prior to the sale of Bibiani to Asante Gold, Chifeng Jilong, the Chinese mining giant had shown interest but opted out a few months later.

Based on an updated feasibility study released by Resolute in July 2018, Bibiani has the potential to generate about 100,000 ounces of gold per year. This production could take place over a ten-year mine life at an all-in sustaining cost of US$764 per ounce.

It also published a current joint ore reserves committee (JORC) compliant mineral resource of 21.7 million tonnes, grading 3.6 grams gold per tonne for 2.5 million ounces of contained gold.

Asante has strong ties to Ghana, with Ghanaian citizens holding a significant shareholding, as well as board and executive roles. Also, the company has announced plans to co-list its shares on the Ghana Stock Exchange.