Asante Gold Corporation, a leading mining and exploration company in Ghana has released their Definitive Feasibility Study (the “DFS”) results assessing the technical and financial viability of extending the life of the Bibiani Mine through future underground operations.
In a statement, Dave Anthony, CEO of Asante, stated: “We are pleased to confirm the potential for an underground mine development with initial life of seven years at Bibiani. This will incorporate 831,000 ounces of gold produced and an attractive all-in sustaining cost (“AISC”) of $1,035 per ounce.”
“Since Asante acquired the Bibiani property in 2021, we have revitalized the operation and reshaped the business plan. We are on a path to achieving annual production of more than 250,000 ounces in 2026 and beyond, further supported by commencement of underground mining in Q4 2025 and other growth initiatives that have already advanced. These include the Bibiani-Goaso Highway bypass in June 2024 to facilitate access to additional mineralized material and completion of the new sulphide treatment plant, which is on track for Q2 2025,” he added.
The DFS focused specifically on underground mining potential below the existing Bibiani Main and Walsh pits. It was developed and compiled by professional mining engineers from Bara International (United Kingdom) with Middindi Consulting (Geotechnical – South Africa) and SLR Consulting (Geohydrology – South Africa) as contributing sub-consultants.
DFS highlights
The Definitive Feasibility Study (DFS) for Bibiani’s underground mine demonstrates strong potential, building on the prefeasibility study.
It outlines plans for mining nearly 12 million tonnes of ore at 2.36g/t gold, yielding 798,000 ounces with an all-in sustaining cost (AISC) of $1,035/oz.
The $116 million initial capital cost is offset by pre-completion revenue, with a post-tax NPV of $516 million and a 71% IRR at a $2,500/oz gold price.
The integrated open-pit and underground mining plan will commence in late 2025, enhancing project value and sustainability.
Mineral Resources and Ore Reserves
The DFS for Bibiani’s underground mine relies on NI 43-101 Mineral Resources and Ore Reserves below the current pit, with 17.40Mt at 2.34g/t Au in Indicated Resources.
Reserves for extraction total 11.93Mt at 2.36g/t Au, yielding 0.93Moz, including Proven reserves of 0.09Mt and Probable reserves of 11.92Mt.
These figures align closely with the 2024 Technical Report. Ongoing exploration targets upgrading 15.18Mt of Inferred Resources to extend the seven-year underground LoM.
Economic Evaluation
The DFS includes an economic evaluation of Bibiani Underground Mine undertaken through a discount cashflow (“DCF”) modelling approach, which was performed in two different gold price scenarios of $1,900/oz and $2,500/oz.
It has established that the Bibiani Underground Mine is economically viable based on the assumptions documented in the DFS, including (based on a gold price of $2,500/oz):
- Initial capital expenditure over two years of $116 million, net of revenue from gold production
- Gold production of 831,000 and LoM AISC of $1,035/oz
- Net cash flow of $675 million
- Post-tax NPV (5% discount rate) of $516 million, with an IRR of 71%
Next Steps
As a result, selection of a contractor to initiate and prepare underground mine infrastructure is planned for Q3 2025, with start of development activity in Q4 2025. Full production from underground workings is expected at 2027.
