Operations at Asanko Gold Mine in Ghana set to restart
Mining operations at the Asanko Gold Mine in Ghana is slated to restart in the fourth quarter of the year. This follows Galiano Gold Inc., in a joint venture with Gold Fields Ltd., awarding contract for the project.
The company plans to manage and operate the mine as a 50-50 partnership. The selection of the contractor was made through a competitive bidding process, and the mining operations are scheduled to restart in the fourth quarter.
A feasibility report published by Galiano Gold in March 2023 outlined the project details. The Asanko Gold Mine has an estimated mine life of 8.5 years and a robust after-tax net present value of US$343 million, assuming a gold price of US$1,700 per ounce. The mine consists of four major open-pit mining areas: Abore, Miradani North, Nkran, and Esaase, along with several satellite deposits along the Asankrangwa gold belt. The processing plant has a capacity of 5 million tonnes per year, utilizing carbon-in-leach technology.
Gold production guidance
The current annual gold production guidance for 2023 is 100,000-120,000 ounces, but the company expects it to double by 2025, reaching approximately 250,000 ounces per year. The joint venture aims to establish AGM as a significant gold mine in Ghana, with an average annual production of nearly 220,000 ounces over the 8.5-year mine life.
The mine holds confirmed gold mineral reserves totaling 48.9 million tonnes, with an average grade of 1.31 grams per tonne. This translates to approximately 2,068,000 tonnes of gold contained within the reserves.
The mining contract encompasses multiple deposits, with Abore scheduled to begin operations in the fourth quarter of 2023, followed by higher-grade mill feed from the second quarter of 2024. To improve productivity and scheduling efficiency and mitigate the impact of inflationary pressures, the mining fleet for Abore and Miradani North has been optimized to utilize 100-ton haul trucks. This optimization is expected to bring significant benefits to the overall operations of the company.
Ghana is a prominent mining destination in Africa, offering exploration opportunities for miners. The country has abundant natural resources such as gold, bauxite, and diamonds, and possesses the necessary infrastructure and skilled workforce to support mining operations.
Galiano Gold’s CEO, Matt Badylak, expressed confidence in delivering the mine’s life-of-plan outlined in the 2023 technical report. The company is committed to establishing AGM as a significant gold mine in Ghana, contributing to the country’s gold production and generating economic benefits.
