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Asante Gold to commence underground mining, targets over 250,000 ounces gold production annually
Asante Gold to commence underground mining, targets over 250,000 ounces gold production annually
By: Nii Ammui Fio | 2 mins read
Asante Gold Corporation has announced plans to launch underground mining operations at its Bibiani Gold Mine, with annual gold production projected to exceed 250,000 ounces starting in 2026.
The company recently completed a Definitive Feasibility Study (DFS) confirming the technical and financial viability of extending the mine's lifespan through underground development.
"We are pleased to confirm the potential for an underground mine development with an initial life of seven years at Bibiani. This will incorporate 831,000 ounces of gold produced and an attractive all-in sustaining cost (AISC) of $1,035 per ounce," said Dave Anthony, CEO of Asante.
He further highlighted, "Since Asante acquired the Bibiani property in 2021, we have revitalized the operation and reshaped the business plan. We are on a path to achieving annual production of more than 250,000 ounces in 2026 and beyond, further supported by commencement of underground mining in Q4 2025 and other growth initiatives that have already advanced. These include the Bibiani-Goaso Highway bypass in June 2024 to facilitate access to additional mineralized material and completion of the new sulphide treatment plant, which is on track for Q2 2025."
The DFS, prepared by Bara International with contributions from Middindi Consulting and SLR Consulting, focuses on the underground mining potential beneath the existing Bibiani Main and Walsh pits. The study outlines the mining of 11.93 million tonnes of ore at an average grade of 2.36g/t gold, with underground reserves as of December 31, 2023.
The estimated initial capital cost stands at $116 million, with projected gold production of 798,000 ounces at an AISC of $1,035 per ounce. The project is expected to generate a post-tax Net Present Value (NPV) of $516 million, assuming a gold price of $2,500 per ounce, with an internal rate of return (IRR) of 71%.
Key next steps include finalizing the combined open pit and underground mine plan, selecting a mining contractor by Q3 2025, and commencing underground operations in late 2025. The development will be funded through ongoing open pit mining activities.
The DFS also details the equipment selection and infrastructure required for the underground expansion. Mining equipment has been chosen to align with the orebody's geometry, minimizing dilution while maximizing productivity. Lessons from Asante's nearby Chirano Gold Mine influenced the selection, ensuring standardization across both sites. The study outlines manpower requirements, remuneration, and cost schedules for development and operational phases.
Ore from the Bibiani underground operations will be processed at the existing Bibiani Process Plant, which was originally designed by Lycopodium in 1997 and refurbished under Asante’s management between 2021 and 2022.
The plant, which includes a gravity concentration circuit and a reconditioned primary gyratory crusher, currently operates at a throughput rate of 2.4 million tonnes per annum (Mtpa). Further upgrades to the sulphide recovery section are scheduled for completion in Q2 2025, ahead of the start of underground mining.
