Mining operations at the Asanko Gold Mine (AGM) are ahead of plan, standing the Ghana joint venture (JV) operation in good stead to meet its full year production guidance of 200 000 oz to 220 000 oz.
The mine – a 50:50 JV between Asanko Gold and Gold Fields – produced a record 61 599 oz in the third quarter, tracking the higher end of the second-half guidance of 110 000 oz to 120 000 oz.
The third-quarter output compares with production of 53 501 oz in the second quarter.
Mining operations were bolstered by the resumption of steady state operations at the Nkran pit, with 1.1-million tonnes of ore mined at a grade of 1.5 g/t. During the quarter, ore was also sourced from the Dynamite Hill and Akwasiso pits.
Asanko, which is the operator of the JV, is currently working on bringing the fourth pit – Esaase – into production.
CEO Peter Breese said on Thursday that the JV partners should approve the project in the fourth quarter, which would allow for mining to start in the first quarter of 2019.
“Site establishment is well under way and preparations for the bulk sample exercise are on schedule for the fourth quarter of 2018,” he reported in the company’s results announcement.
The purpose of the bulk sample is to confirm the previous co-leaching test work results that mixes ore from the new source with existing ore sources to support an investment decision by the JV partners.
Construction has also started on the haul road linking Esaase to the existing haul road infrastructure and this will be completed by year-end.
At the end of September, the JV had about $30.4-million in unaudited cash, $1.2-million in gold receivables and $1.9-million in dore.
Meanwhile, at the Esaase operation, Asanko expects mining to start in the first quarter of 2019.