While production at Asanko Gold’s Ghana-based operations was lower in the second quarter of 2017 compared with the first quarter, the second quarter did see some “positive wins” for the Canadian junior miner, according to CEO Peter Breese.
He noted that the company had reduced its all-in sustaining costs (AISC) to $930/oz from $956/oz quarter-on-quarter, owing to decreases in mining costs and sustaining capital.
“Further, our grade control drilling programme compared favourably to within 2% of the Ghana-based Nkran mineral resource estimate, validating our recently updated Nkran mineral resource estimate,” said Breese.
Nevertheless, Asanko has lowered its 2017 guidance to between 205 000 oz and 225 000 oz at an AISC of $920/oz to $960/oz, from a previous guidance of between 230 000 oz and 240 000 oz at an AISC of $880/oz to $920/oz.
At Nkran, the recent results from the ore reconciliation process identified blast movements as a source of ore losses and dilution in the pit.
“We are now deploying blast movement technology to amend our dig plans to increase gold recovery. We expect to see the full benefits of this programme over the coming two quarters as it is embedded into our operational plans, but we are still taking a more cautious view with respect to guidance,” noted Breese.
In addition to ore losses and pit dilution at Nkran, the company has attributed its downward revision to the historic artisanal workings at Akwasiso, which are deeper than previously thought.
“This has resulted in less oxide and more fresh ore tonnes being available for mining than expected. As a result, we will be feeding less oxide tonnes through the plant and reducing the overall tonnes processed in the second half of 2017 until Dynamite Hill comes on stream towards the end of the fourth quarter,” said Breese.
Asanko produced 46 017 oz of gold during the period under review at a price of $1 238/oz, generating gold revenue of $60-million.
Mining continued through the low-grade zone of the Nkran pit, and ore mining activities at the Akwasiso satellite deposit got under way.
The miner also completed volumetric upgrades at its ‘Project 5 Million’ operation – to five-million tonnes a year – ahead of schedule and within budget.
Asanko lowered operating cash costs in the second quarter to $572/oz, from $578/oz in the second quarter, and reported total cash costs of $634/oz, versus $638/oz in the first quarter.
In the period under review, the gold miner earned a net income of $1.2-million, or nil a share.