Asante Gold Corporation is pleased to announce the filing of a technical report in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) in connection with the Preliminary Economic Assessment (“PEA”) on Asante’s Kubi Gold Project (“Kubi” or the “Project”) located in the Ashanti region of Ghana.
The technical report entitled “NI 43-101 Technical Report, Kubi Gold Project, Ghana, West Africa” dated August 29, 2022 (with an effective date of March 11, 2022) has been prepared for Asante by dMb Management Services and Bara Consulting Pty Ltd (the “Technical Report”). A copy of the Technical Report is available on SEDAR (www.sedar.com) under Asante’s issuer profile.
The Technical Report demonstrates the economic viability of underground mining of the Kubi Main mineral deposit as defined in a prior technical report prepared by SEMS Exploration Services Ltd (“SEMS”) in December, 2014 (the “SEMS 2014 Technical Report”). The Technical Report includes a proposal for early underground development to allow for further exploration drilling from underground platforms.
Key highlights of the Technical Report include:
Underground mining which enhances the economic potential of the Kubi Project through robust cash flows and rapid payback
Measured and Indicated Mineral Resources of 1.32Mt Au at 5.48g/t (0.23Moz) and Inferred Mineral Resources of 0.67Mt Au at 5.31g/t (0.12Moz)
Early underground development to support further exploration activities:
- Underground exploration drilling to expand current resources
- Geotechnical studies and further metallurgical test work
- Process 1.55Mt Run-of-Mine @ 4.19g/t Au for 6,510kg Au
- Process recovery of 92.5% recovery yielding 193,600oz Au at a recovered grade of 3.87g/t
- Total project revenue over life of mine estimated at US$288 million based on a gold price of US$1,750 and payability of 85%
- Capital cost – total project and sustaining capital cost of US$117.40 million
- Operating cost of US$99.92 million
- AISC of US$911/oz
- Post tax NPV of US$30.70 million and Project IRR of 25% with a payback of peak funding in two year
Adequately funded to complete Pre-Feasibility Study and 17,000m drill program
Appreciable community and traditional authority support
Dave Anthony, President and CEO, stated: “We are pleased to submit this Technical Report which demonstrates significant potential for Kubi to be a standalone project. We believe the early underground development to support further exploration activities will upgrade and expand the resources even further. Asante thanks the Kubi technical team and principal consultants dMb Management Services Pty Ltd and BARA Consulting Pty Ltd for delivering the Technical Report.”
Asante is utilizing the Mineral Resource Estimate published in the SEMS 2014 Technical Report that was prepared for the purpose of developing an underground exploration program and preliminary mining exercise within the Kubi Main Zone. The Mineral Resource Estimate used in the SEMS 2014 Technical Report was initially compiled in 2010 by SEMS (the “SEMS 2010 Technical Report”) and is focused on the Kubi Main Zone. Additional drilling and metallurgical test work completed since the SEMS 2014 Technical Report was published support its findings.