Asanko gives flagship Ghana project the green light

Asanko gives flagship Ghana project the green light

Photo by Asanko Gold

17th July 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America


Font size: - +

TORONTO ( – The board of West Africa-focused project developer Asanko Gold on Thursday gave construction of the $295-million first phase of its flagship project in Ghana the thumbs up to start construction during the third quarter.

The TSX- and NYSE-listed firm said Phase 1 would be based in PMI Gold Corp’s previous plans for the Obotan gold project, which Asanko acquired during a $173-million takeover in February.

While work is expected to start in seriousness during the third quarter, Asanko will forge ahead with work to complete a National Instrument 43-101-compliant technical report, including a definitive project plan with an updated resource estimate, by the last quarter of the year.

Early works at the project site started in April, in preparation for the positive investment decision. Project construction will start shortly, with the company expecting to turn the first sods within the next month.

Initial gold production is targeted for the first quarter of 2016 and the company expects to achieve steady-state output by the second quarter of that year.

“The board's approval … is the first step towards achieving our vision of becoming a midtier gold producer. Our detailed engineering work to date has confirmed the robustness of the project, with the capital control budget estimate in line with PMI’s 2012 definitive feasibility study (DFS),” Asanko's president and CEO Peter Breese said.

With the project fully permitted, financed and a team of experienced mine builders and operators in place, Asanko said it would, in parallel with construction, evaluate the optimal way to implement Phase 2 to bring to account the additional 2.2-million ounces of reserves at Esaase, while capturing the synergies between the two deposits.

With over 7.5-million ounces of gold resources and 4.8-million ounces of mineral reserves, the Asanko gold mine would be the foundation on which the company will establish itself as a midtier gold mining company.

The Obotan DFS targeted about 2.25-million ounces of gold over an 11.5-year life-of-mine through an openpit contractor mining operation and a three-million-tonne-a-year carbon-in-leach (CIL) processing plant.

The primary source of feed material for the CIL plant would be the Nkran pit, with satellite pits at Adubiaso, Abore and Asuadai being mined later in the mine life. The DFS estimated cash operating costs of $626/oz, or $722/oz including royalty and refining costs and projected “robust” economic returns at an assumed gold price of $1 300/oz gold.

Despite trading below the $1 300/oz-mark over the past two days, the spot gold price in New York on Thursday closed at $1 318/oz.

Asanko’s TSX-listed stock gained $0.20 a share, to close at C$2.82 apiece.

Edited by Tracy Hancock
Creamer Media Contributing Editor



Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...


From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...


Latest Multimedia

sponsored by

Resources Watch
Resources Watch
19th June 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.186 0.22s - 106pq - 2rq
1: United States
Subscribe Now
2: United States