Asante Gold boosts Bibiani resource

Asante Gold (CSE: ASE; US-OTC: ASGOF) has increased its Ghana-based Bibiani gold mine's measured and indicated resources by about 26% to 2.3 million ounces and improved its mine life from six years to 8.3.

The latest technical report, which the company says has been "prepared to the level of confidence of a prefeasibility study," is an update to the project's feasibility study filed in 2018 and its 2021 resource estimate.

The project's 2022 measured and indicated resource totals 31.6 million tonnes grading 2.24 grams gold per tonne for 2.3 million oz. gold. Inferred resources add 4 million tonnes grading 2.74 grams gold for 350,000 oz. gold.

Bibiani's new proven and probable mineral reserves total 28.4 million tonnes grading 2.14 grams gold for 2 million oz. of contained gold.

In a press release, the company noted that the Bibiani mine orebody remains open at depth and along strike. "The company continues with exploration at surface and will start an underground mine design project during Q4 2022, with a view toward commencing underground operations in 2024," it said.

First gold pour was completed successfully with process of gravity gold concentrate recovered by the Knelson Concentrator. (Image courtesy of Asante Gold Corp.)

Bibiani is a historically significant gold mine situated in the northwestern region of Ghana. The project produced more than 4 million oz. of gold before being halted by its previous owners. It came out of care and maintenance in September 2021, shortly after Asante acquired it.

According to the latest technical report, at a 5% discount rate and using a gold price of US$1,703 per oz., the project would generate a post-tax net present value of US$392 million and an internal rate of return of 43%.

Cash costs have been pegged at US$823 per oz. The total expected gold to be recovered is 1.9 million oz. at an all-in sustaining cost of US$1,222 per ounce.

"The company continues with surface exploration activity and anticipates extending open pit mine life," Asante's CEO Dave Anthony said in a press release.

"Recently, we announced a forward gold financing agreement that will account for less than 30% of the next 12 months expected gold production at Bibiani. This agreement puts the company on solid financial footing as we move forward," he added.

On Jul. 15, the company completed the first US$100 million tranche of a US$140 million financing package from strategic financial institutions in Ghana. The money will be used to cover local operating costs and the Company's near-term broader funding and strategic objectives.

At press time in Toronto, shares of Asante Gold traded at $1.29 within a 52-week trading range of 32 cents and $2.29.