Asante Announces Updated NI-43-101 Technical Report FOR the Bibiani GOLD MINE
ASANTE ANNOUNCES UPDATED NI-43-101 TECHNICAL
REPORT FOR THE BIBIANI GOLD MINE
Vancouver, British Columbia – July 18, 2022 – Asante Gold Corporation (CSE: ASE | GSE:
ASG | FRANKFURT: 1A9 | U.S.OTC: ASGOF) (“Asante” or the “ Company”) is pleased to
announce preparation of a n updated NI 43-101 Technical Report for the Bibiani Gold Mine
(“Bibiani” or the “Project”), operated by Mensin Gold Bibiani Limited (“Mensin Gold Bibiani”),
a 90% owned Ghana subsidiary of Asante (the “2022 Technical Report”). Th e 2022 Technical
Report has been prepared to the level of confidence of a Pre-Feasibility Study and will be filed on
the Company’s SEDAR profile (www.sedar.com) within 45 days.
The 2022 Technical Report when filed will supersede the previous Bibiani JORC/NI 43-101
submissions by Resolute Mining Limited ("Resolute") in 2018 (the “Resolute 2018 Technical
Report”) and by Asante in November 2021, which were based on geological modelling for
development of an underground mine (the “2021 Technical Report”) . By re-configuring to open
pit mining, Asante increased the 2021 Project Measured + Indicated Mineral Resources by 26.4%
to 2.29 Moz. The Mineral Resource estimate included in the 2021 Technical Report does not
include significant gold mineralization outlined beneath the current pit shells (see Figures 1 to 4
below).
In July 2018, Resolute, released an updated feasibility study for Bibiani (see Resolute’s ASX
Announcement dated July 13, 2018) reporting JORC compliant Mineral Resources of 21.7 Mt at
3.6 g/t Au for 2.5Moz of gold, to be mined using underground methods to a depth of 475m. In
November 2021, Asante released the 2021 Technical Report that was based on Resolute ’s
underground modelling and interpretations that considered open pit mining. It defined a 1.8M oz
resource to be mined using open pit mining practices to a depth of 350m. The mineralized material
from the Resolute 2018 Technical Report located below the pit bottom was not included in
Asante’s 2021 Technical Report.
The 2022 Technical Report is based on updated geological data and resource modelling. It
specifically reflects development o f open pit mining plans, plus start of mining operation and
processing facilities. The Measured and Indicated Mineral Resources have been increased to 2.29
Moz and are further classified as 1.95 Moz of Mineral Reserves. The open pit mine life has been
increased from 6 years to 8.3 years, with more than 1.9 Moz of gold expected to be produced. The
Bibiani Mine orebody remains open at depth and along strike . The Company continues with
exploration at surface and will start an underground mine design project during Q4 2022, with a
view toward commencing underground operations in 2024.
The 2022 Technical Report will include re-modelled and updated Mineral Resource and Mineral
Reserve Estimates along with a detailed mining schedule and economic analysis relevant for an
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open pit mining operation. Asante plans to mine using staged cut-backs of the Bibiani Main Pit
and two satellite pits, Walsh and Strauss.
Key highlights of the 2022 Technical Report, on a 100% owned basis, include:
• Measured + Indicated Mineral Resources of 31.57MT at 2.25g/t Au (2.29 Moz) and Inferred
Mineral Resources of 4.02Mt at 2.75 g/t Au (0.355 Moz)
• Proved and Probable Mineral Reserves of 28.41Mt at 2.14 g/t Au (1.95 Moz)
• Project Life of Mine (“LoM”) of 8.3 years (Open Pit)
• Post-Tax IRR 43% and NPV (5%) of US$392 million at US$1,703/oz gold
• Cash costs US$823/oz
• AISC US$1,222/oz
• Total gold recovered 1.9 Moz
• Payback Period of 2.0 years
• Measured + Indicated Mineral Resources Bibiani Main Pit, include a 54% increase in tonnes
and a 25% increase in ounces (Indicated portion)
• Measured + Indicated Mineral Resources Walsh Pit, include a 16% increase in tonnes, a 45%
increase in grade, and a 68% increase in ounces
The mine design and schedule results in a mining inventory of 28.41Mt at 2.14g/t Au. The LoM
is 8.3 years at a steady state of 4.0Mtpa from 2025. The total material mined reaches a maximum
of approximately 8Mtpm with an average LoM strip ratio of 17.
The 3Mtpa Bibiani mine process plant has been refurbished and updated to 2022 standards, and
24 hour per day operation has started. Current plans are to treat approximately 3Mtpa of ore from
2022 - 2023, comprised of both fresh and oxide ore from the Bibiani Main and satellite pits. Asante
plans to expand the processing capabilities to 4.0Mtpa throughput by 2025 to meet the
requirements of the LoM Plan.
“We purchased the Bibiani Gold Mine in August 2021 and have recently announced the start of
operations. We are pleased to report that our initiatives to conduct extensive near mine exploration,
resume open pit operations and refurbish the Process Plant, have resulted in a significant increase
to mine life and expected gold production at Bibiani. We continue our work to define and capture
opportunity for significant upside at Bibiani . The Company continues with surface exploration
activity and anticipates extending open pit mine life . An underground mine design program will
start in Q4 2022, with a goal to start underground mining in 2024. These exploration, design and
production initiatives are not considered in the 2022 Technical Report. Recently, we announced a
forward gold financing agreement that will account for less than 30% of the next 12 months
expected gold production at Bibiani. This agreement puts the Company on solid financial footing
as we move forward,” stated Dave Anthony, President and CEO, who added, “ Asante thanks the
technical team of Mensin Gold Bibiani and principal consultants dMb Management Services Pty
Ltd, BARA Consulting Pty Ltd and SNOWDEN Optiro for delivering the 2022 Technical Report
ahead of schedule.”
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MINERAL RESOURCES AND MINERAL RESERVES
Snowden Optiro have re-modelled the Mineral Resources to be applicable and pertinent to Mensin
Gold Bibiani’s open pit operational plan. This Mineral Resource Estimate and associated Mineral
Reserve Estimate supersedes all previous submissions (the Resolute 2018 Technical Report; 2021
Technical Report).
The effective date of the Mineral Resource estimate is February 28, 2022 and comprises the Bibiani
Main Pit and Satellite Pits (Walsh and Strauss), which have been combined into a global Mineral
Resource estimate as presented below.
Summary of Mineral Resource at a 0.5 g/t Au cut-off as at February 28, 2022
Measured and Indicated Inferred
Tonnes Au Grade Au Content Tonnes Au Grade Au Content
Deposit (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)
Bibiani Main Pit 30.20 2.23 2.170 3.90 2.69 0.338
Satellite Pits 1.37 2.62 0.116 0.12 4.57 0.020
TOTAL 31.57 2.24 2.286 4.02 2.74 0.358
Notes:
1. Tonnes and ounces have been rounded and this may have resulted in minor discrepancies.
2. Mineral Resources are not Mineral Reserves.
3. Mineral Resources are reported inclusive of any Mineral Reserves that may be derived from them.
4. 1 troy ounce = 31.1034768g.
5. A 0.5g/t gold cut-off has been applied and constrained by a RPEEE US$1,950 (metal price) Resource pit shell.
6. A density of 2.75t/m³, 2.50t/m³ and 2.0 t/m³ on fresh, transition and oxidized sediments have been applied respectively.
7. Geological losses and depletions have been applied.
8. Inferred Mineral Resources have a great amount of uncertainty as to their existence and as to whether they can be mined econo mically. It
cannot be assumed that all or part of the Inferred Mineral Resource will ever be upgraded to a higher category.
The Mineral Resource Model is supported by an updated lithological model, analytical data, recent
infill and exploration diamond drilling and geophysical logging and survey results. The data used
as inputs to t he model have been collected and compiled at a high standard supporting the
conclusion that the Project is a high-quality mineral asset.
The Mineral Reserve Estimate has been prepared by BARA Consulting using CIM, 2014 and
procedures for classifying the reported Mineral Reserves were undertaken within the context of NI
43-101.
The Mineral Reserves were derived from the Mineral Resource block models and estimates . The
Mineral Reserves are based on the Measured and Indicated Mineral Resources that have been
identified as being economically extractable and which incorporate mining losses and the addition
of waste dilution.
The mine design supporting the Mineral Reserve is based on an optimum pit shell using an
US$1,850/oz Au price. The Mineral Reserve Estimate as at February 28, 2022 is presented in the
following table.
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Summary of Mineral Reserve as at February 28, 2022
Tonnes Grade Contained Gold
(Mt) (g/t) (Moz)
Proven Mineral Reserves 0.258 2.16 0.018
Probable Mineral Reserves 28.151 2.14 1.932
TOTAL Mineral Reserves 28.409 2.14 1.950
Notes:
1. The Mineral Reserve is reported in accordance with the requirements and guidelines of NI 43-101 and are 90% attributable to Asante and
10% to Ghana Government.
2. Apparent computational errors due to rounding are not considered significant.
3. The Mineral Reserves are reported with appropriate modifying factors of dilution and recovery.
4. The Mineral Reserves are reported at the head grade and at delivery to plant.
5. The Mineral Reserves are stated at a price of US$1850/oz as at February 28, 2022.
6. Although stated separately, the Mineral Resources are inclusive of the Mineral Reserves.
7. The mine plan underpinning the Mineral Reserves has been prepared by Mensin Gold Bibiani and reviewed by BARA Consulting.
8. No Inferred Mineral Resources have been included in the Mineral Reserve estimate.
9. Quantities are reported in metric tonnes.
10. The input studies are to the prescribed level of accuracy.
11. The Mineral Reserve estimates contained herein may be subject to legal, political, environmental or other risks that could materially affect
the potential exploitation of such Mineral Reserve.
For readers to fully understand the information in this news release they should read the 2022
Technical Report in its entirety once available, including all qualifications, assumptions,
exclusions, and risks. The 2022 Technical Report is intended to be read as a whole and sections
should not be read or relied upon out of context.
Reasonable Prospects for Eventual Economic Extraction
Mensin Gold Bibiani holds the relevant mining lease, surface rights, major approvals and permits
required for the planned and ongoing mining operations.
The Bibiani mineralization is part of a regional structure and is not the only deposit of its type in
the region. The nature of the mineralisation style and setting are well understood and can support
a declared Mineral Resource and further exploration potential.
Sampling methods, preparation, analyses, and security ar e performed to Industry Standards and
subsequent data is fit for use in M ineral Resource and Mineral Reserve estimation. Appropriate
QA/QC programs, to address precision and accuracy of information, are adhered to by the
Company geologists and exploration teams.
The 2022 Technical Report provides an update of the previous Mineral Resource Estimate that
was compiled from a geological model relevant to an underground operating strategy by previous
owners. The Company has prepared a new geological model and updated Resource Estimate to
satisfy the open pit operations . Snowden Optiro have remodelled the geological i nformation to
produce a revised and updated Resource Model and Resource Estimation for the Bibiani Main Pit
and Satellites Pits (Walsh and Strauss).
The Bibiani Main Pit and Satellite Pits relevant to the 2022 Technical Report have been historically
mined by both open pit and underground operations by several previous owners. Mineral Reserves
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are supported by a positive economic assessment assuming a US$1,850/oz Au price . The cut-off
grade selected is appropriate for the Company objectives.
Recovery methods in the refurbished and upgraded process plant facility and gold recovery
assumptions (92%) are supported by historical production and test work.
Mensin Gold Bibiani has received all necessary legal requirements and complies with
environmental and social requirements . The Tailings Storage Facility was historically designed,
recently refurbished, and continues to be managed under a current contract by Knight Piesold
Ghana Limited.
Mensin Gold Bibiani has implemented a Resettlement Action Plan in alignment with the LoM
Plan that will require a phased engineering and construction program to relocate the impacted
community.
The discounted cash flow model for the proposed operation demonstrates that the Project is robust
under the current techno -economic assumptions described in the 2022 Technical R eport. The
analysis supports the declared Mineral Reserve and supports the Company’s decision to progress
the Project to full production.
About Asante Gold Corporation
Asante is a gold exploration, development and operating company with a high-quality portfolio of
projects in Ghana. Asante is currently operating the Bibiani Gold Mine with forecast production
of 175,000 oz of gold over the next 12 months, is completing the acquisition of the Chirano Gold
Mine from Kinross Gold Corporation (the Chirano Acquisition), and is developing to production
its Kubi Gold mine, all located on the prolific Bibiani and Ashanti Gold Belts. Asante has an
experienced and skilled team of mine finders, builders and operators, with extensive experience in
Ghana. Asante is listed on the Canadian Securities Exchange, the Ghana Stock Exchange and the
Frankfurt Stock Exchange. Asante is also exploring its Keyhole, Fahiakoba and Betenase projects
for new discoveries, all adjoining or along strike of major gold mines near the centre of Ghana’s
Golden Triangle. Additional information is available on our web site at www.asantegold.com.
About the Bibiani Gold Mine
Bibiani is a historically significant gold mine situated in the W estern Region of Ghana, with
previous gold production of more than 4Moz. It is fully permitted with available mining and
processing infrastructure on- site consisting of a 3 million tonne per annum process plant, and
existing mining infrastructure. Mining commenced in late February with the first gold pour
announced on July 7, 2022. The Company is forecasting 175,000 oz of gold production over the
next 12 months.
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About the Chirano Gold Mine
Chirano is an operating open- pit and underground mining operation located in southwestern
Ghana, immediately south of the Company’s Bibiani Gold Mine . Chirano was first explored and
developed in 1996 and began production in October 2005. The mine comprises the Akwaaba,
Suraw, Akoti South, Akoti North, Akoti Extended, Paboase, Tano, Obra South, Obra, Sariehu and
Mamnao open pits and the Akwaaba and Paboase underground mines. Gold Equivalent Production
in 2021 was 154,668 oz on a 100% basis (source Kinross Gold Corporation).
Qualified Person Statement
The technical content of this news release with respect to the 2022 Technical Report has been
reviewed and approved by the Qualified Persons (as defined under NI 43- 101) and authors of the
PFS: David Michael Begg of dMb Management Services Pty Ltd (South Africa), Clive Brown of
BARA Consulting (South Africa), Ian Jackson of BARA Consulting (UK) and Senzeni Mandava
of Snowden Optiro (South Africa). None of the Qualified Persons hold any interest in Asante, its
associated parties, or in any of the mineral properties which are the subject of this news release.
Other scientific and technical in formation has been reviewed and approved by Douglas R.
MacQuarrie, P.Geo. (B.C.) Geology & Geophysics, Non -Executive Chairman and a director of
Asante, who is a "qualified person" under NI 43-101.
Figure 1 - Bibiani Main Pit - Long Section looking West, showing New Pit on November 2021
underground resource model.
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Figure 2 - Bibiani Main Pit Cross Section 5150N looking north, on November 2021
underground resource model.
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Figure 3 - Bibiani Main Pit Cross Section 5300N looking N, on November 2021 underground
resource model.