Modern Mining May 2016

MINING News

Asanko Gold Inc, listed on the TSX and NYSE, has provided an update on the Phase 2 Definitive Feasibility Study (DFS) for its flagship project, the Asanko Gold Mine (AGM) in Ghana. The DFS was initiated fol- lowing a positive Pre-Feasibility Study (PFS) released inMay 2015 and is now examining a staged construction scenario. The PFS envisioned integrating the Esaase deposit with Phase 1 – which achieved commercial production on 1 April this year – to create one large, multi-pit mine and expanding the exist- ing processing facilities to produce an average of 411 000 ounces of gold per annum over a 10,5-year Life of Mine (LoM) Staged construction the “smarter option” for Phase 2 of Asanko The Asanko Gold Mine showing the ROM pad, crusher and conveyor of the Phase 1 processing facility (Photo: Asanko Gold). from 2018. The ore would be mined and crushed at Esaase and then conveyed to the expanded Phase 1 processing facility, which would include an upgrade to the CIL circuit with two extra tanks to increase capacity from 3 Mt/a to 3,8 Mt/a and the addition of a 5 Mt/a flotation plant.

Following the successful commission- ing of Phase 1 in Q1 2016, the process plant has demonstrated the ability to operate at greater than 110 % of the 3 Mt/a design. This has presented an opportunity to take advantage of the Esaase oxide ore (rep- resenting approximately 37 % of Esaase reserves) which is well suited to process- ing through the CIL circuit. Therefore the scope of the Phase 2 DFS has been modi- fied to include a two-stage approach for the integration of the Esaase deposit with Phase 1. Peter Breese, President and CEO, said: “The successful ramp-up of the Phase 1 processing facility and the additional excess mill capacity has led us to re-think our approach for Phase 2. With a hungry mill and a CIL circuit that can be cost effec- tively upgraded, we believe staging the development of Esaase is a smarter option that we can fund out of cash flow whilst maintaining our strong balance sheet. “By focusing on mining just the Esaase oxides initially, which will utilise the mill’s spare capacity, we can increase gold pro- duction by nearly 50 %, thereby reducing our unit cost of production and signifi- cantly improving cash flow. 

Layout of the Asanko project. Asanko Gold is now planning a staged approach to the implementation of Phase 2.

10  MODERN MINING  May 2016