Ashanti ups output in West Africa

Denver — Ashanti Goldfields (ASL-N) has posted record gold production and improved operating costs for the fourth quarter.

Production topped 1.7 million oz. gold in 2000, up from 1.6 million oz. in 1999. Cash operating costs averaged US$190 per oz., down 7% from the previous year.

For the fourth quarter, production reached 438,280 oz., slightly ahead of the year before, while cash operating costs were US$185 per oz.

In Ghana, the giant Obuasi complex contributed 137,139 oz. at a cash operating cost of US$186 per oz. in the 3-month period. For the year, it produced 640,988 oz. at US$205 per oz.

Although production dropped in 2000 (from 743,111 oz. in 1999), cash operating costs decreased (from US$222 per oz.), reflecting the closing of the high-cost surface operation, as well as the Pompora and oxide treatment plants.

Contributions from the underground mine held steady at 2.3 million tonnes averaging 7.9 grams gold per tonne.

In 2000, the company started a drilling program to upgrade resources across the mine. Results are expected to accompany the fourth-quarter earnings statement.

Elsewhere in West Africa, Ashanti’s operations posted strong performances. In Guinea, the 85%-held Siguiri mine produced a record 303,381 oz., up significantly from the previous year. The increase was due to improved metallurgical recovery and additional ore stacking from 1999’s second-phase expansion. Cash operating costs held steady at US$184 per oz., largely due to higher fuel costs.

The Bibiani mine, in Ghana, turned out a record 273,711 oz. at US$152 per oz. in 2000, up from 261,899 oz. at US$162 per oz. in 1999.

The 80%-held Iduapriem mine, also in Ghana, produced 166,892 oz., thanks to the addition of the nearby Teberebie operation. Higher throughput grades pushed operating costs to US$233 per oz. Teberebie is expected to extend the life of Iduapriem by nine years.

In Zimbabwe, the Freda-Rebecca mine posted a record 112,164 oz. in 2000, at cash operating costs of US$206 per oz.

At the Geita mine in Tanzania, which entered production in June 2000, output totalled 176,836 oz. for the year. Cash operating costs were US$145 per oz. In December, Ashanti sold half of the open-pit mine to AngloGold (AU-N) for a total of US$335 million in cash and financial assistance.

At the end of 2000, reserves at Geita had grown 41% to 7.8 million oz. gold within 63.5 million tonnes grading 3.8 grams gold per tonne. Total resources stood at 14.6 million oz. in 111.2 million tonnes at 4.1 grams per tonne.

Exploration around the mine has consisted of deep infill drilling at the Nyankanga deposit, as well as shallow drilling on the Chipako prospect, northwest of the plant site.