Asante Gold’s feasibility extends Bibiani 7 years

Asante Gold‘s (CSE: ASE USOTC: ASGOF) new definitive feasibility study (DFS) confirms the potential to extend Bibiani in Ghana by at least seven years through mining underground reserves below the existing open pits.

The DFS, says Asante, reinforces its underground strategy for Bibiani previously articulated at the prefeasibility level last April. It investigates the underground extraction from the Bibiani Main and Walsh orebodies, with total reserves of nearly 12 million tonnes grading 2.36 grams gold per tonne.

Gold production over an initial seven-year life would come to 798,000 oz. at an all-in sustaining cost of US$1,035 per oz. following project completion. The post-tax net present value (at 5% discount rate) is estimated at US$516 million with a 71% internal rate of return.

Initial capital of the underground project — which will be staged with open-pit mining at the main pit — is pegged at US$116 million over two years, net of pre-completion revenue from 33,000 oz. produced. Mineralized material from the underground operation will be processed in the existing Bibiani plant that was recommissioned in mid-2022.

Shares in Asante gained 2% by mid-Tuesday in Toronto to $1.02 apiece, valuing the company at $511.1 million. They’ve traded in a 52-week range of 83¢ to $1.53. 

Mine plan

Following the DFS release, Asante will seek to finalize the combined Bibiani open pit/underground mine plan. It plans to choose a contractor in this year’s third quarter to prepare underground mine infrastructure. Construction to be funded from open-pit mining may follow in the fourth quarter. Full production from underground workings is expected in 2027.

“Since Asante acquired the Bibiani property in 2021, we have revitalized the operation and reshaped the business plan,” Asante CEO Dave Anthony said in Tuesday’s news release. Bibiani poured first gold in July 2022 following its acquisition from Resolute Mining (ASX: RSG; LSE: RSG).

Anthony also said that the underground project is part of the company’s vision to achieve annual production of more than 250,000 oz. at the Ghanaian operation in 2026 and beyond.

Other growth initiatives include the Bibiani-Goaso Highway bypass completed in June 2024 to facilitate access to additional mineralized material, and a new sulphide treatment plant that is on track for this year’s second quarter. In September 2024, Asante also began mining from a third satellite pit at Bibiani.