A US$60-million financing will provide funds for Ashanti Goldfields (AHD.U-T) to develop the Bibiani gold project in western Ghana.
The open-pit mine is expected to produce 170,000 oz. gold per year at a cash cost of under US$230 per oz. Measured and indicated resources total 19.7 million tonnes averaging 2.76 grams gold per tonne, plus an inferred resource of 4.9 million tonnes at 2.71 grams.
Construction is under way and first production is targeted for the second half of 1998. Capital costs are projected at US$83 million.
Bibiani is one of two mines Ashanti plans to bring into production next year. The other is the 70%-owned Siguiri project in northeastern Guinea.
Reserves and resources total 55 million tonnes grading 1.55 grams gold.
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