Asanko projects 100,000 gold ounces by H2

Asanko Gold Inc., whose flagship project is the multi-million ounce Asanko Gold Mine located in Ghana, West Africa, has said in its 2016 production outlook that in second-quarter (Q2 2016), the Company expects to produce 35,000 to 40,000 ounces.

For the second half of the year (H2 2016), the Company expects to produce 90,000 to 100,000 ounces, which is indicative of steady-state life of mine production rates.

In the miner’s latest operational update, it said as at March 31, 2016 the Company had approximately US$72 million cash on hand.

On April 6, Asanko announced that commercial production had been declared at Phase 1 of the Asanko Gold Mine, located in Ghana, West Africa, 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 ore body in the Nkran pit. Steady-state operations are expected by the end of Q2 2016.

During March 2016, the processing facility processed 276,146 tonnes (8,908tpd (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 & warehouses installed and operational.

Asanko said as of March 31, 2016, a total of 15,337 ounces of gold and 2,860 ounces of silver had been produced and shipped. 8,710 ounces had 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 mineralization. 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.”