Asante Gold Completes $90 Million Bibiani Mine Buy
Bibiani is a historically significant gold mine situated in the Western Region of Ghana, with previous gold production of more than 4Moz. It is fully permitted with available mining and processing infrastructure on-site consisting of a newly refurbished 3 million tonne per annum process plant and existing mining infrastructure. Mining commenced in late February with the first gold pour announced on July 7, 2022, with forecast 12 month gold production of 175,000 oz.
Asante Gold completes $90 million Bibiani mine buy
All process plant and mine facilities are operating on a 24 hour per day basis, with 265,000 tonnes of ore treated in November, as budgeted. Preliminary gold production in November was 10,800 ounces, with 89% recovery from 1.41 g/t average mill feed gold grade.
Detailed studies to identify and capture synergies between Chirano and Bibiani Mines are advanced. Opportunities to reduce costs and improve our operations have estimated value of approximately $5.5 to $7 million per year. Implementation of actions to capture these opportunities has been started, including coordinated supply of principle consumable materials to the mine with identified commonality.
Bibiani is a historically significant gold mine situated in the Western North Region of Ghana, with previous gold production of more than 4 million ounces. It is fully permitted with available mining and processing infrastructure on-site consisting of a newly refurbished 3 million tonne per annum process plant, and existing mining infrastructure. Mining commenced in late February with the first gold pour announced on July 7, 2022. Commercial production was announced November 10, 2022.
In July 2018, the company has launched an updated feasibility study for Bibiani, which indicated mineral resources of 21.7 million tonnes at 3.6 grams of gold per tonne for 2.5 million ounces of gold at Bibiani.
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 with a combined forecast production of 335,000 oz of gold over the next 12 months. The Company continues with detailed technical studies at its Kubi Gold Project for early production.
Resolute Mining said that it would use the initial cash receipt of $30 million from the sale of the Bibiani mine to repay debt, noting that Asante was dedicated to injecting the necessary capital to achieve the rapid restart of the mine.
"Asante, which owns the Kubi gold mine in Ghana, is already building the management and operations team with a view to bring the Bibiani mine to production within the next year," MacQuarrie said in a statement.
The Chirano Mine, owned by Asante Gold (previously Kinross Gold), is located 50 kilometers to the north. Chirano produced 155,000 ounces of gold in 2021 and 165,000 ounces of gold in 2020. Enchi is situated on the same regional structure as Chirano with comparable geology, alteration and mineralization.
The multi-million-ounce Chirano Gold Mine (owned by Asante Gold) hosts plunging zones of high-grade gold mineralization (see diagram below). The Chirano zones are similar to those found at Enchi, including known zones Sewum, Boin, Nyam and Kwakyekrom. Like Chirano, the zones at Enchi have broad lower grade gold at surface with higher grade core structure extending to depth.
(i) Successfully outlined an inaugural Indicated Mineral Resource of 743,500 gold ounces with substantial conversion from the Inferred category to the Indicated category, de-risking project development;(ii) Defined an Inferred Mineral Resource of 972,000 gold ounces; (iii) Established a high-grade underground resource for the first time of 135,900 gold ounces at an average grade of 2.42 g/t gold, proof of concept that outlines the potential for longer-term resource growth from sulphide mineralisation;(iv) Added a fifth deposit at Enchi, with an inaugural Inferred Mineral Resource at Tokosea of 46,900 ounces, proving out the potential for mine life extension from the district scale exploration opportunity at the Project; (v) Does not include approximately 38,000 metres of drilling which focused on greenfield discoveries and high-grade sulphide mineralisation at depth, highlighting the multi-million-ounce potential of the 216 km2 district scale property; and(vi) Further supports and de-risks the strong economics outlined in the 2021 Preliminary Economic Assessment.The Mineral Resource Estimate has an effective date of January 25, 2023, is reported using a constraining resource pit at a gold price of US$1,650 per ounce, and consists of:
1. Canadian Institute of Mining Metallurgy and Petroleum ("CIM") definition standards were followed for the resource estimate.2. The 2023 resource models used ordinary kriging (OK) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids and constrained by pits shell for Sewum, Boin and Nyam. Kwakyekrom and Tokosea used Inverse Distance squared (ID2).3. Open pit cut-off grades varied from 0.14 g/t to 0.25 g/t Au based on mining and processing costs as well as the recoveries in different weathered material.4. Heap leach cut-off grade varied from 0.14 g/t to 0.19 g/t in the pit shell and 1.50 g/t for underground based on mining costs, metallurgical recovery, milling costs and G&A costs.5. CIL cut off grade varied from 0.25 g/t to 0.27 g/t in a pit shell and 1.50 g/t for underground based on mining costs, metallurgical recovery, milling costs and G&A costs.6. A US$1,650/ounce gold price was used to determine the cut-off grade.7. Metallurgical recoveries have been applied to five individual deposits and in each case three material types (oxide, transition, and fresh rock).8. A density of 2.19 g/cm3 for oxide, 2.45 g/cm3 for transition, and 2.72 g/cm3 for fresh rock was applied.9. Optimization pit slope angles varied based on the rock types.10. Reasonable mining shapes constrain the mineral resource in close proximity to the pit shell.11. Mineral Resources that are not mineral reserves do not have economic viability. Numbers may not add due to rounding.12. The resource estimate was prepared by Todd McCracken, P.Geo, of BBA E&C Inc. in accordance with NI 43-101. Todd McCracken is an independent qualified person ("QP") as defined by NI 43-101.
Several high-priority gold targets have been identified to expand the already substantial, near-surface oxide resource with multi-million ounce opportunities. Considering the positive results of the latest resource update, the shallow drilling completed to date and number of untested anomalies, there is excellent potential to expand the current resource.
See July 27, 2022 news release for a detailed overview of the drill program: -gold-completes-90-000-metre-drill-program-significantly-expanding-the-mineralized-footprint-at-the-enchi-gold-project/
The Mining industry of Ghana accounts for 5% of the country's GDP and minerals make up 37% of total exports, of which gold contributes over 90% of the total mineral exports. Thus, the main focus of Ghana's mining and minerals development industry remains focused on gold. Ghana is Africa's largest gold producer, producing 80.5 t in 2008. Ghana is also a major producer of bauxite, manganese and diamonds. Ghana has 20 large-scale mining companies producing gold, diamonds, bauxite and manganese; over 300 registered small scale mining groups; and 90 mine support service companies.
Export earnings from minerals averaged 35%, and the sector is one of the largest contributors to Government revenues through the payment of mineral royalties, employee income taxes, and corporate taxes. In 2005, gold production accounted for about 95% of total mining export proceeds.
The Ministry of Lands and Natural Resources(Ghana) oversees all aspects of Ghana's mineral sector and is responsible for granting mining and exploration licenses. Within the Ministry, the Minerals Commission has responsibility for administering the Mining Act, recommending mineral policy, promoting mineral development, advising the government on mineral matters, and serving as a liaison between industry and the government. The Ghana Geological Survey Department conducts geologic studies. The Ghana National Petroleum Corporation (GNPC) is the government entity responsible for petroleum exploration and production. The Precious Minerals Marketing Corporation (PMMC) is the government entity responsible for promoting the development of small-scale gold and diamond mining in Ghana and for purchasing the output of such mining, either directly or through licensed buyers. The Mines Department has authority in mine safety matters. All mine accidents and other safety problems also must be reported to the Ghana Chamber of Mines, which is the private association of operating mining companies. The Chamber also provides information on Ghana's mining laws to the public negotiates with the mine labor unions on behalf of its member companies.
Other legislation that affects mining and mineral exploration in Ghana includes the Minerals Commission Law of 1986 (PNDC Law 154); the Small-Scale Gold Mining Law of 1989; the Investment Promotion Act, 1994 (Act 478); the Additional Profits Tax Law, 1985 (PNDC Law 122); the Minerals (Royalties) Regulations, 1987 (LI 1349); the Environmental Protection Agency Act, 1994 (Act 490); and the Environmental Assessment Regulations, 1999, and as amended, 2002. The Petroleum (Exploration and Production) Law, 1984 (PNDC Law 84), sets out the policy framework and describes the role of the Ministry of Mines and Energy, which regulates the industry. The Ghana National Petroleum Corporation (GNPC), which is empowered to undertake petroleum exploration and production on behalf of the government, is authorized to enter joint ventures and production-sharing agreements with commercial organizations; GNPC was established under the GNPC Law of 1983 (PNDC Law 64). The regulation of artisanal gold mining is set forth in the Small-Scale Gold Mining Law, 1989 (PNDC Law 218). The Precious Minerals Marketing Corporation Law, 1989 (PNDC Law 219), set up the Precious Minerals Marketing Corporation (PMMC) to promote the development of small-scale gold and diamond mining in Ghana and to purchase the output of such mining, either directly or through licensed buyers. 041b061a72