Asante Provides Operations and Corporate Update
ASANTE PROVIDES OPERATIONS AND
CORPORATE UPDATE
Vancouver, British Columbia, February 6, 2024 – Asante Gold Corporation (CSE:ASE | GSE:ASG |
FRANKFURT:1A9 | U.S.OTC:ASGOF) (“Asante” or the “Company”) is pleased to provide an update
on its operations and corporate activities.
Operations Update – Bibiani Mine
The Company is pleased to announce a key milestone has been reached, with development of the d etour
road. We can now report that it is on track for completion February 20, 2024.
• An MOU has been signed with the community to support cutting the National Highway when the detour
road is complete;
• There will be a period of redirection of traffic on to the detour road and confirmation that traffic control
systems are working as expected;
• Follow-up consultation with the communities involved will proceed to ensure all expectations have
been met which will allow for the National highway to be cut;
• When the National highway is cut, the Bibiani mine will have access to higher grade, oxide mineralized
material located close to surface resulting in a significant increase in gold recovery and production.
This is estimated as a 100,000 oz increase in gold production for this fiscal year ending January 31,
2025.
Mining operations have continued at the Main Pit, Grasshopper and Walsh pits into 2024 as planned. The
process plant continues to operate with 86 to 90% availability.
All long lead equipment for the Sulphide treatment Plant has been manufactured and the civil works are
60% complete. The detailed design and project execution plan are complete. Project execution for the
Sulphide Treatment Plant is six months from project kick-off. This is expected to provide 92% gold
recovery for the Life of Mine (“LOM”), when treating sulphide ore.
The Company will extend the Bibiani open pit LOM as a result of successful exploration and development
at South Russel (see news releases dated March 29, 2022, August 17, 2022, January 17, 2023 and September
14, 2023). The Starter Pit development has been initiated.
• Latest mineral resource definition drilling results at South Russell confirm consistency of high -grade
vein in the footwall shear including:
o Constrained Indicated Mineral Resources of 2.5Mt @ 1.79g/t for 157k oz of contained gold within
an optimal pit shell of $1,850/oz gold price (see press release of September 14, 2023);
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o The Mineral Resource Estimate (“MRE”) for South Russel is supported by approximately 20,000m
of drilling;
o Multiple mineralized material shoots with mineralization open along strike and down plunge;
o The MRE confirms a clear high -grade shoot intersected in the footwall domain with an average
grade of 8.26g/t over an interval of 15m; and
o Additional drilling has commenced, to include infill of the inferred mineral resource areas within
the constrained shell, grade control drilling and also to grow the mineral resources to the south.
Drilling programs at the Grasshopper and Elizabeth satellite deposits are advanced and the Company
continues its near mine development exploration program with planned drilling of approximately 25,000
metres per year.
The Company is progressing with an underground mine planning study to define development of an
underground mine operation that would access mineralized deposits below the Bibiani Main Pit and the
satellite pits. The Company anticipates that the underground mine program initiative will begin in 2025 and
will increase annual gold production significantly from 2026. It will extend mine life beyond the period of
open pit mining toward 2035. The results of this study and 2023 exploration results will be report ed in
detail in the NI-43-101 update noted below.
Bibiani is focused on increasing gold production and reducing unit operating costs through the following
initiatives:
• The gravity recovery plant is performing as planned with up to 35% of gold being recovered by this
facility;
• The oxygen plant has been installed on schedule and has been providing oxygen to the plant since
September 2023. In addition, a MACH ReactorTM will be installed to increase oxygen utilization during
fiscal Q1 of this year;
• A pebble crusher has been acquired with plans for installation during fiscal Q2 this year, with the aim
of increasing process plant throughput from 3.0 Mt/y to 4.0Mt/y in the next two years;
• The primary crusher upgrade has been completed;
• Sulphide recovery plant long lead items are ready to be shipped for installation with 60% of civil works
currently complete;
• Upgrades and expansions of the CIL and elution facilities are in progress and expected to be completed
during fiscal Q1 of this year;
• Other cost saving and productivity improvement initiatives are ongoing;
• The Company has developed a 12-year operational strategy as part of its LOM extension program which
is systematically updated; and
• Exploration of near mine targets proved to be successful with the South Russell project, where a starter
pit is planned by April 2024.
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A National Instrument 43-101 technical report (“NI 43-101”) is advanced to verify results of all initiatives
noted above. This report is planned to be issued in April 2024.
Operations Update – Chirano Mine
Chirano open pit operations continue to be focused at Sariehu and Mamnao South pits, with extension of
Mamnao North starting in February 2024. Underground mining continues at Akwaaba, Akoti, Tano, Suraw
and Obra mines.
Chirano is focused on increasing gold production and reducing unit operating and sustaining capital costs
through the following initiatives:
• The gravity recovery plant was completed and commissioned in December 2023. Operation and
optimization continues, with very positive results to date;
• Oxygen plant construction for supply of oxygen to the carbon-in-leach (“CIL”) process was completed
in December 2023 reducing operating costs and increasing gold recovery. Installation of a Maelgwyn
Aachen ReactorTM will proceed this quarter to improve mineral shear and leach kinetics;
• A pebble crusher was installed on schedule in 2023 and throughput capacity has increased from 3.4Mt/y
to 3.7Mt/y. Further primary grinding upgrades, including CIL plant agitators, pump upgrades and
cyclone replacement to improve grind size control are planned to be operational by April 2024 with the
aim of increasing process plant metallurgical performance and throughput from 3.7Mt/y to 4.0Mt/y;
• Relocation of minor infrastructure and facilities, planned to provide access to and expansion of the
Akoti South open pit, will be undertaken this year;
• The second cutback at the Sariehu open pit is progressing well and delivering as planned;
• Mining from the Mamnao Central and South pits has been cut back with stripping operations ongoing.
Gold production from these areas has been replaced by Sariehu, followed by Obra pit and Mamnao
North pit;
• Studies and associated initiatives are progressing on schedule to be finali zed by April 2024, with
designs to improve the current material handling systems at the northern mines, to deliver mineralized
material to the process plant in a reliable and cost -effective manner. This initiative will support
extension of mining depth and LOM;
• Development of Obra (wide orebody), Suraw and the lower Tano underground mines is progressing to
plan and remains the operational focus, while developing Tano and Akoti south mines to create a more
robust mining program;
• The Company is committed to invest a minimum of US$9 million per year in near mine and regional
exploration over the next three years with intention to increase Chirano’s LOM to 10+ years;
• Underground proven and indicated reserve exploration projects such as the Suraw mine, Obra mine and
open pit mining life extension projects at the Sariehu/Mamnao area are progressing as planned to
support a robust mining program and extend the mine life; and
• The Company has developed a +10 -15 year operational strategy as part of its LOM extension program.
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A NI-43-101 technical report update has been initiated to incorporate the results of initiatives noted above.
This report is planned for issue in April 2024.
Drilling results at Aboduabo extend the footprint of the prospect to the north, to approximately one
kilometer in length. There are significant intercepts down plunge in multiple mineralized structures, which
highlight the strong upside potential of the Aboduabo prospect. All 94 drill holes to date have intersected
mineralization. The intercepts are consistent with those previously encountered in both gold grade and
thickness. The prospect remains open along strike and at depth. Metallurgical test work is in progress and
with Aboduabo being on the Bibiani shear, similar metallurgical behavior as at Bibiani main pit is observed.
Capturing Synergies Between Bibiani and Chirano Mines
The Company has commenced initiatives to capture synergies between Bibiani and Chirano mines. These
initiatives include benefits related to provision of support services, logistics and supply of principal
consumable materials. Development of a 15 km access road has been initiated which will directly link the
process plants and increase access for logistics and exploration along the highly mineralized Bibiani -
Chirano shear zones. This road will become a mine haul road so that ore can be treated where most
appropriate. Asante continues to develop opportunities to share infrastructure and to realize operational
cost reductions among its operations.
The Genser gas-fired power plant started operation at Chirano in mid 2023. The improvement in reliability
of power supply has allowed process plant availability to exceed 96%. The Company has initiated planning
for a power line to be extended from the Genser facility to the Bibiani Mine which will also improve process
plant availability from 88% to 96%.
Other Initiatives
• The Company plans to continue exploration drilling activities in under -explored areas within the
Bibiani mining lease, principally the area further south of South Russel and the Pamunu prospect area
supported by exploration fieldwork along the Chirano-Bibiani shear zones;
• Extensive geophysical surveys will continue to the north of Bibiani Mine Lease, covering the Donkoto
prospecting license; and
• Preparatory work for flora and fauna assessment studies are planned to commence on the Kubi Gold
Mine in preparation for a biodiversity offset plan as a precursor to environmental permit applications.
Corporate and Financing Update
The Company continues to focus on the execution of its near -term growth plans and financing initiatives,
including discussions with potentially interested parties regarding strategic alternatives. Any proposals, if
received, will be reviewed by the Company, in consultation with its financial and legal advisors. The
Company does not undertake any obligation to provide any updates with respect to any proposals, except
as required under applicable law.
Further to the Company’s press release of September 21, 2023 announcing the US$40 million forward sale
of gold agreement, the Company reports that it has delivered 4,000 ounces of refined gold per month as
scheduled and anticipates the US$40 million will be re -advanced on the fifth month anniversary in March
2024.
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The Company continues to pursue other near-term, non-dilutive financing initiatives to support capital
investments and working capital requirements.
Dave Anthony, President and CEO of Asante, stated, “We are pleased to have made positive developments
at both Bibiani and Chirano in terms of project value and gold production. We look forward to successful
completion of our current financing initiatives.”
Qualified Person Statement
Scientific and technical information contained in this news release has been reviewed and approved by
Daniel Apau, a member of the Australasian Institute of Geoscientists, and the Exploration Manager for
Chirano Gold Mines Limited, and by Dave Anthony, P.E ng., Mining and Mineral Processing, President
and CEO of Asante, all of whom are “qualified persons” under NI 43-101.
About Asante Gold Corporation
Asante is a gold exploration, development and operating company with a high-quality portfolio of projects
and mines in Ghana. Asante is currently operating the Bibiani and Chirano Gold Mines and continues with
detailed technical studies at its Kubi Gold Project. All mines and exploration projects are located on the
prolific Bibiani and Ashanti Gold Belts. Asante has an experienced and skilled team of mine finders,
builders and operators, with extensive expe rience in Ghana. The Company 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 the
Company’s website at www.asantegold.com.
About the Bibiani Gold Mine
Bibiani is an operating open pit gold mine situated in the Western North Region of Ghana, with previous
gold production of more than 4.5 million ounces. It is fully permitted with available mining and processing
infrastructure on-site consisting of a newly refurbished 3 million tonne per annum process plant and existing
mining infrastructure. Asante commenced mining at Bibiani in late February 2022 with the first gold pour
announced on July 7, 2022. Commercial production was announced November 10, 2022.
For additional information relating to the mineral resource and mineral reserve estimates for the Bibiani
Gold Mine, please refer to Asante’s press releases dated July 18, 2022 and September 1, 2022 and the
technical report filed on its SEDAR profile (www.sedarplus.ca) on September 1, 2022.
About the Chirano Gold Mine
Chirano is an operating open pit and underground mine located in the Western Region of 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.
For additional information relating to the mineral resource and mineral reserve estimates for the Chirano
Gold Mine, please refer to Asante’s press releases dated October 15, 2022 and May 15, 2023 and the
technical report filed on its SEDAR profile (www.sedarplus.ca).
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For further information please contact:
Dave Anthony, President & CEO
Frederick Attakumah, Executive Vice President and Country Director
+1 604 661 9400 or +233 303 972 147
Cautionary Statement on Forward-Looking Statements
Certain statements in this news release constitute forward-looking statements, including but not limited to,
production and all-in sustaining costs forecasts for the Bibiani and Chirano Gold Mines, estimated mineral
resources, reserves, exploration results and potential, development programs and increases in mine-life,
starter pit development and potential synergies between Chirano and Bibiani. Forward -looking statements
involve risks, uncertainties and other factors that could cause actual results, perfor mance, prospects, and
opportunities to differ materially from those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially from these forward -looking statements include,
but are not limited to, variations in the nature, quality and quantity of any mineral deposits that may be
located, the Company’s inability to obtain any necessary permits, consents or authorizations required for
its planned activities, the Company’s inability to raise the necessary capital or to be fully able to implement
its business strategies, and the price of gold. The reader is referred to the Company’s public disclosure
record which is available on SEDAR ( www.sedarplus.ca). Although the Company believes that the
assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance
should not be placed on these statements, which only apply as of the date of this news release, and no
assurance can be given that such events will occur in the disclosed time frames or at all. Except as required
by securities laws and the policies of the securities exchanges on which the Company is listed, the Company
disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
Cautionary Note Regarding Non -GAAP Financial Measures
Alternative performance measures in this news release such as “AISC” are furnished to provide additional
information. These non -GAAP performance measures are included in this news release because these
statistics are used as key performance measures that management uses to monitor and assess performance
of Bibiani and Chirano, and to plan and assess the overall effectiveness and efficiency of mining
operations. These performance measures do not have a standard meaning within International Financial
Reporting Standards (“IFRS”) and, therefore, amounts presented may not b e comparable to similar data
presented by other mining companies. These performance measures should not be considered in isolation
as a substitute for measures of performance in accordance with IFRS.
All-In Sustaining Cost (“AISC”) - AISC includes cash costs and sustaining capital and exploration
expenses. The Company believes that this measure is useful to external users in assessing operating
performance and the Company’s ability to generate free cash flow from current operations.
LEI Number: 529900F9PV1G9S5YD446. Neither IIROC nor any stock exchange or other securities
regulatory authority accepts responsibility for the adequacy or accuracy of this release.