Asanko Gold Inc, listed on the TSX and NYSE, has announced that commercial production has been declared at Phase 1 of the Asanko Gold Mine (AGM) in Ghana, effective April 1, 2016, a quarter ahead of schedule. Gold production will continue to ramp-up during Q2 2016 as the mining operations access the main orebody in the Nkran pit. Steady-state operations are expected by the end of Q2 2016.
The Asanko Gold Mine showing the ROM pad, crusher and conveyor (Photo: Asanko Gold).
During March 2016, the processing facility processed 276 146 tonnes or 8 908 tonnes per day which is 111 % of design capacity. The Phase 1 project construction is now essentially complete, ahead of schedule and within budget, with all ancillary infrastructure, such as workshops and warehouses installed and operational.
As at March 31, 2016, a total of 15 337 ounces of gold and 2 860 ounces of silver had been produced and shipped. Some 8 710 ounces have been sold at an average price of US$1 211 per ounce for sales of US$10,6 million. In addition to this, approximately 6 200 ounces of gold have been locked-up in the processing circuit.
Commenting on the performance to date, Peter Breese, President and CEO, said: “The ramp-up to steady-state production levels is progressing well and reaching commercial production a full quarter ahead of our original schedule is a fantastic achievement by our team. The milling circuit achieved design feed rates and target grind size within weeks of being commissioned. Since then, the milling rates have continued to improve as has gold recovery, both of which are exceeding design parameters by some margin.
“The stripping of waste at the Nkran pit continues to advance as the pit is being opened up to expose the main zones of mineralisation. 2016 will therefore be a year of two halves. The first half is focused on preparing the pit for continuous long life operations and steady-state production levels whilst the second half of 2016 will reflect the Definitive Project Plan (DPP) run rates and grade profile.”
Asanko Phase 1 is designed to produce an average of 190 000 oz/a gold at an AISC of US$781/oz over the life of the mine. Approximately 1 500 people, 400 employees, 442 mining contractors and 658 other contractors, will be employed during steady-state production.
The planned Phase 2 expansion of AGM will integrate the Esaase deposit with the Phase 1 Obotan project to create one large, multi-pit mine producing an average of ±410 000 ounces of gold a year.
