Asanko Gold on track to meet production guidance

JOHANNESBURG (miningweekly.com) – TSX- and NYSE-listed Asanko Gold produced 58 187 oz of gold in the first quarter of the year, selling around 57 812 oz at an average price of $1 199/oz.

This resulted in first-quarter revenue of $69.3-million.

Commenting on the Ghana-based Asanko gold mine’s performance, CEO Peter Breese noted that the record production positioned the company well to meet its full-year guidance.

“Looking ahead, 2017 will be a year of two halves. With the first half focused solely on mining fresh ore from Nkran, production volumes will be lower and costs will be higher compared with the second half.

“In the second half, as we bring our second pit, Dynamite Hill, into production, the softer oxide ore is cheaper to mine and process and we expect that the incremental ore from Dynamite Hill, coupled with the Project 5 Million plant expansion, will deliver increased volumes and lower operating costs,” said Breese.

Project 5 Million, which entails upgrading the processing plant from 3.6-million tonnes a year to five-million tonnes a year, was progressing well and ahead of schedule, with commissioning now expected in the fourth quarter.

With the strategic stockpile of 1.5-million tonnes – equivalent to five months of production – as well as the dual ramp system, ore mining rates dropped during the quarter to more optimal levels, at 339 096 t/m.