West Africa-focused aspiring midtier gold mine Asanko Gold, expects to achieve the first gold pour from its Asanko gold project, in Ghana, by the second quarter of next year, the company says, noting Phase 1 of the mine development is nearing completion.

The first phase of the project will be a low-cost, long-life mine producing 190 000 oz/y of gold.

Steady-state production at an all-in sustaining cost of $781/oz is also expected to be achieved during the second quarter of next year, the company says.

Asanko president and CEO Peter Breese commented on the status of the construction of Phase 1 of the project in an official statement from the company. “The current level of activity and energy at the project site is tremendous, as we have achieved some significant milestones since our last update, including the installation of the primary crusher mill shells,” stated Breese.

Asanko points out that construction at the mine continues to progress, noting that three-quarters of the overall construction project is complete.

Part of the Asanko project also includes the relocation of families which were residing at the Nkaran village, and partial relocation has been completed, with the 88 building structures completed to date.

“The completion and handover of 88 houses as part of the partial village relocation is a major achievement and one that was done in close collaboration with . . . the local community,” says Breese.”

The Asanko CEO further notes that prestripping of the Nkran pit, which is the main mineral resource for Phase 1 is steadily progressing according to schedule, with hard rock having been reached in August, the same month which saw the start of drilling and blasting operations.

Mining operations at the gold mine are running at production levels of 80 000 t/d to 90 000 t/d, which, according to the company, is in alignment with the long-term and the steady life plans of the mine.

About 53 000 t of ore at a grade of 1.62 g/t of gold has been mined during the planned prestrip. The ore mined was previously categorised as an inferred mineral resource and was included in the mineral reserve estimate.

Expected to be completed before the cusp of the fourth quarter of 2015 are the pit dewatering boreholes, with 4.6-million cubic metres, equating to 77%, of the expected six-million cubic metres of water having been pumped from the Nkaran pit.

Asanko also expects the completion and commissioning of the stockpile feed conveyor and primary crusher to be completed before the end of the fourth quarter.

Asanko claims that Phase 1 of the project remains within budget, with $180-million already spent and an additional $110-million committed.

The West African mine is fully funded to cash flow positive, with about $182-million in cash on hand as of August 31, with a $20-million cost-overrun facility for total available funding of about $202-million.

Funds of $162-million remain, which includes $139-million allocated to the project, $18-million for working capital, as well as $5-million towards corporate costs until the accomplishment of commercial production, which is earmarked for the second quarter of 2016.

About Asanko Gold

Asanko’s vision is to become a third-tier mining company that increases value for all its stakeholders.

The company’s flagship project is the multimillion-ounce Asanko gold mine, located in Ghana, West Africa.