Asante Gold Corporation announces the filing of its audited financials, management’s discussion and analysis and annual information form for the year ended January 31, 2023. According to the takeaways,
1: Gold production and sales of 120,713 ounces and earned revenue of Canadian $274.7 million. Accordingly, Net comprehensive loss of Canadian $169.5 million.
2: Completed US$60 million in deferred payments for Bibiani acquisition. Completed US$52 million in payments pursuant to the Company’s gold forward sale agreement. Closed acquisition of an indirect 90% interest in the Chirano Gold Mine on August 10, 2022.
Synergies between Chirano and Bibiani (~15 km apart) have been identified, including procurement of services and consumable materials, shared services, technical services and training initiatives, with expected savings of approximately $5.5 to $7 million per year. Initiatives have been taken to capture these opportunities and will continue to be rolled out through Q3 2023.
The Bibiani exploration program targeting increased mine life beyond 8.3 years continues to meet success.
The exploration program at Chirano that targets increased mine life beyond 5 years has been successful, with the Aboduabo prospect emerging as a significant, long-term opportunity.
The Chirano business improvement plan that includes several process plant upgrades and accelerated mine development is advancing as planned. This program targets a 30% increase in production and a 10% decrease in AISC for calendar 2024.
Dave Anthony, President and CEO of Asante stated, “Over the past 18 months Asante has been transformed from an early-stage exploration company to a mid-tier gold producer. In fiscal 2023, we made payments totaling US$60 million towards closing our Bibiani acquisition, repaid $52 million on our gold forward sale agreement and closed the Chirano acquisition.
With consolidation of two operating mines near each other, we have control of a district scale land package with significant gold resources and exploration upside. Previously announced value creation initiatives are proceeding across our business as we look to make the Bibiani-Chirano complex one of the top mining districts in Africa.”
Highlights of the current activities are,
1: Underground mine planning for Bibiani is advanced, with start of development anticipated for Q2 2024. Bibiani ramp up includes development of the Grasshopper satellite pit, which is expected to operate through Q1 2024 and deliver in excess of 50,000 oz gold in 2023.
2: Chirano is achieving target production levels of gold in 2023. The pebble crusher at Chirano started operation in April 2023, bringing throughput to 4.0Mtonnes/y. The gravity recovery plant and oxygen plant at Chirano will start operation in Q3 2023.
3: The Bibiani pebble crusher will start operation in Q4 2023, bringing throughput to 3.6Mtonnes/year. The sulphide treatment plant at Bibiani is planned to start operation in Q4 2023. Aboduabo starter pit is expected to begin development in Q4 2023. South Russell starter pit is expected to begin development in Q4 2023.
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