Asante Gold Corporation has provided an update on its operations and corporate activities at its Bibiani Mine.
The Mining company exploration of near mine targets proved to be successful with the Grasshopper satellite pit coming into production in Q2 2023. At the South Russel deposit, a starter pit is planned to be developed during Q4 with delivery of mineralized material expected to occur by January 2024.
The gravity plant was upgraded prior to start of production in July 2022 and continues operation achieving 25 – 35% gold recovery, as planned. The installation of a scalping screen is planned to increase gravity gold recovery by 5% with expected completion in late October 2023.
Also, a pebble crusher has been ordered and will be installed in the coming months to increase process plant throughput capacity from 3.0 million to 3.4 million tonnes per year.
For the fiscal year ending January 31, 2024, the Company expects production of approximately 80,000 to 90,000 ounces gold at Bibiani. Subject to receipt of the requisite funding and completion of capital projects as outlined above, Asante expects Bibiani to produce approximately 180,000 ounces of gold for the fiscal year ending January 31, 2025 with all-in sustaining costs of $1,325/oz.
The Company is also pleased to report that it has entered into an agreement (the “Agreement”) with a strategic financial institution (the “Purchaser”) for the forward sale of gold which will provide US$40 million of financing to the Company on a revolving basis over a two-year period. Under the Agreement, a subsidiary of the Company will deliver 4,000 ounces of refined gold per month to the Purchaser for 24 months, commencing in October 2023.
As an advance deposit (the “Deposit”) towards future gold deliveries, the Purchaser will pay the equivalent of US$40 million in local currency to a subsidiary of the Company shortly after execution of the Agreement. Deliveries will be credited against the Deposit and funds will be re-advanced, at the Company’s election, on each fifth monthly anniversary of execution of the Agreement.
The Company continues to pursue other near-term, non-dilutive financing initiatives to support capital investments and working capital requirements.
Dave Anthony, President and CEO of Asante, stated,
“It’s an exciting and busy time at Asante with several near-term catalysts on the horizon, most notably the completion of high-return capital projects that are expected to transform the production and cost profile at both of our operations. With the receipt of funding to backstop near-term liquidity requirements and other near-term financing initiatives well underway, we are confident in our ability to execute on our business plans” He said.
About Asante Gold Corporation
Asante is a gold exploration, development and operating company with a high-quality portfolio of projects and mines in Ghana. Asante is currently operating the Bibiani and Chirano Gold Mines and continues with detailed technical studies at its Kubi Gold Project. All mines and exploration projects are located on the prolific Bibiani and Ashanti Gold Belts. Asante has an experienced and skilled team of mine finders, builders and operators, with extensive experience in Ghana. The Company is listed on the Canadian Securities Exchange, the Ghana Stock Exchange and the Frankfurt Stock Exchange. Asante is also exploring its Keyhole, Fahiakoba and Betenase projects for new discoveries, all adjoining or along strike of major gold mines near the centre of Ghana’s Golden Triangle.
