Asanko Gold Provides Update on Esaase Project
February 01 2019 - 7:00AM
Asanko Gold Inc. (“Asanko” or the “Company”) (TSX, NYSE
American: AKG) is pleased to provide an update on the
development of the Esaase Project, which forms part of the
multi-pit Asanko Gold Mine (the “AGM”), located in Ghana, West
Africa. The AGM is a 50:50 joint venture (“JV”) with Gold Fields
Ltd (JSE, NYSE: GFI) which is managed and operated by Asanko.
Highlights:
- Successful completion of Esaase bulk sampling in Q4 2018
- Trial mining operations at Esaase commenced in January 2019, as
planned
- Mined 95,899 tonnes @ 1.2 g/t in January 2019 @ 0.5g/t cut off
grade
- Development decision by JV partners to proceed with Esaase
development expected Q2 2019
- Updated NI 43-101 expected in Q2 2019
Commenting on the update, Peter Breese,
President and CEO, said “The large-scale Esaase deposit provides an
exciting near-term organic growth opportunity for the business.
Ahead of a decision by the JV partners on the full-scale
development plan in Q2 2019, it was appropriate to undertake a bulk
sampling and trial mining operation and use the production and
technical data to augment the updated Life of Mine plan. We
are very encouraged by the results from the bulk sample and the
trial mining so far, with the oxides performing well in the mill,
throughput is exceeding expectations and gold recovery is in line
with current levels experienced from other feed sources.”
Trial Mining OperationEsaase is
a large-scale permitted greenfields deposit located approximately
27 kms from the processing facility. A bulk sample was mined and
processed through the central processing facility during Q4 2018,
with the Esaase material performing above expectations. The trial
mining operation, which commenced in January 2019 and will continue
until end of June 2019, is focused on mining the surface oxides of
the deposit. Mining is restricted to day shift only, with minimal
blasting, and the material is being trucked to the processing
facility via the newly commissioned haul road.
Mining rates are expected to approximate 350,000
- 400,000 tonnes per month during this period. Pre-production
capital is estimated at US$18 million, of which US$11 million has
been spent up to December 2018, and consists of initial
infrastructure, mobilization of the mining contractor, initial
mining works and the construction of a section of haul road to
connect Esaase to the existing AGM haul road network.
Esaase Long-Term Development
PlanIn 2017, Asanko published a Definitive Feasibility
Study for the AGM, which included the development of Esaase and
envisaged an overland conveyor to transport the ore from Esaase to
the processing facility as part of the Project 5 Million (“P5M”)
growth project. The Esaase mine, overland conveyor and the haul
road are permitted.
Following the JV transaction with Gold Fields,
which was concluded in July 2018, the JV partners undertook a
detailed review of the proposed Esaase development plan and
associated long-term ore transportation solution. This
included a program of in-fill reverse circulation drilling and
re-logging of historical core which has helped to better understand
the geological controls to mineralization. All the new data is
being compiled into updated Mineral Resource and Reserve
Estimates.
In addition, other technical aspects such as the
geotechnical, hydrogeological and metallurgical design parameters
have also been re-evaluated, incorporating recent production data
from the bulk sampling and trial mining operation. This, together
with the updated Mineral Resource and Reserve Estimates, will
result in an updated LoM plan that will confirm the optimal ore
transportation solution and associated capital cost that will form
the basis of the 2019 long term development plan for Esaase. This
will be presented to the JV partners for a development decision in
Q2 2019.
Qualified Person
StatementFrederik Fourie, Asanko Senior Mining Engineer
(Pr.Eng) is the Asanko Qualified Person, as defined by Canadian
National Instrument 43-101 (Standards of Mineral Disclosure), who
has approved the preparation of the technical contents of this news
release.
About Asanko Gold Inc.Asanko’s
vision is to become a mid-tier gold mining company that maximizes
value for all its stakeholders. The Company’s flagship project,
located in Ghana, West Africa, is the jointly owned Asanko Gold
Mine with Gold Fields Ltd, which Asanko manages and operates.
Asanko is managed by highly skilled and successful technical,
operational and financial professionals. The Company is strongly
committed to the highest standards for environmental management,
social responsibility, and health and safety for its employees and
neighbouring communities.
Forward-Looking and other Cautionary
InformationThis release includes certain statements that
may be deemed "forward-looking statements". All statements in this
release, other than statements of historical facts, that address
the planned operations are forward-looking statements.
Although the Company believes the forward-looking statements are
based on reasonable assumptions, such statements should not be in
any way construed as guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include market prices for metals, the conclusions of detailed
feasibility and technical analyses, the timely renewal of key
permits, lower than expected grades and quantities of resources,
mining rates and recovery rates and the lack of availability of
necessary capital, which may not be available to the Company on
terms acceptable to it or at all. The Company is subject to the
specific risks inherent in the mining business as well as general
economic and business conditions. For more information on the
Company, Investors should review the Company's Annual Form 40-F
filing with the United States Securities Commission and its home
jurisdiction filings that are available at www.sedar.com.
Neither Toronto Stock Exchange nor the
Investment Industry Regulatory Organization of Canada accepts
responsibility for the adequacy or accuracy of this release.
Enquiries:
For further information please visit: www.asanko.com, email: info@asanko.com or contact:
Alex Buck – Manager, Investor & Media Relations
Toll-Free (N.America): 1-855-246-7341
Telephone: +44-7932-740-452
Email: alex.buck@asanko.com
Andrew J. Ramcharan – SVP, Corporate Development & IR
Toll-Free (N.America): 1-855-246-7341
Telephone: +1 647 309 5130
Email: andrew.ramcharan@asanko.com
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