Welcome!

News Feed Item

Asanko Gold Initiates Phase 1 of AGM and Appoints Key Contractors

Highlights:

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/03/14 -- Asanko Gold Inc. ("Asanko") (TSX: AKG)(NYSE MKT: AKG) is pleased to announce it has appointed DRA as the Engineering, Procurement, Construction and Management ("EPCM") contractor for the design and construction of Phase 1 of the Asanko Gold Mine ("AGM") Project in Ghana, following a competitive bidding process.

Based in Johannesburg, South Africa, DRA has successfully worked with the leadership team at Asanko on multiple projects in Africa over many years and has recently completed engineering work on Asanko's Esaase project. DRA is a well-known and highly respected EPCM contractor, with a strong track record of successfully building, commissioning and operating gold plants across Africa. Recently, DRA has acted as EPCM contractor for Randgold Resources on the 7.2 million tonne per annum ("Mtpa") gold processing facilities and associated infrastructure at the recently built and commissioned Kibali site in the DRC and is currently working as the EPCM contractor for Aureus Mining at their New Liberty Project in Liberia.

Peter Breese, President and CEO, said "The appointment of DRA as EPCM contractor marks the initiation of Phase 1 at our flagship project, the Asanko Gold Mine, which will form the foundation of our vision to become a mid-tier gold producer. My team and I have worked extensively with DRA for many years and together we have successfully built and commissioned mines in Africa that have all been delivered on time and on budget. It is this track record that gives us confidence that we will be able to deliver first gold in Q1 2016.

Work is progressing well on all other fronts and the Board is targeting to make an investment decision mid-year. We are fully funded for Phase 1 with US$255 million cash and we are making good progress with Red Kite to modify the security provisions and loan documentation for our existing agreements. We expect to have these revisions completed in Q2 2014."

In addition, the Company has appointed Knight Piesold to design the TSF and carry out detailed geotechnical engineering works for the site. Knight Piesold are well known in Ghana and have designed, built and operated several tailings storage facilities in the country. They have reviewed the current TSF design and concluded that the selected location can be expanded to hold tailings from both Phase 1 and Phase 2 operations.

AGM Phase 1

Phase 1 is based on PMI Gold Corporation's Definitive Feasibility Study ("DFS") on the Obotan Project, published in September 2012(1). Asanko is currently updating the DFS capital and operating cost estimates. As part of the competitive EPCM tendering process, Asanko received and reviewed a selection of bids for the process facilities. Based on this, the Company believes that the US$83.7 million capital cost for the construction of the processing plant included in the DFS capital cost estimate of US$298 million is still valid. As well, the Company is modifying certain technical elements to incorporate Phase 2's future requirements.

Asanko has also undertaken work on enhancing the information utilized to complete the Mineral Resource Estimate at Nkran and Adubiaso. The updated Mineral Resource Estimate for these two deposits will form the basis of the detailed mine plan, which will be completed by mid-year along with the Project's Control Budget Estimate to allow Asanko's Board to make the full investment decision. A full update on all the Company's Mineral Reserves and Resources will be published as normal course of business with our 2014 year-end filings.

The September 2012 Feasibility Study for Phase 1 targeted approximately 220,000 ounces of annual gold production over the first five years of mine life via an open pit contractor mining operation and a 3 Mtpa carbon-in-leach ("CIL") processing plant (see attached flow sheet). The primary source of feed material for the CIL plant will be the Nkran and Adubiaso pits. In addition, the Company will be investigating the potential for the newly discovered Dynamite Hill deposit to provide additional feed material in the early years of production.

Nkran is an existing pit that was mined from 1998-2002 and requires approximately four months of dewatering prior to starting the pre-strip. The Company has a permit to dewater the pit and expects to commence pumping later in 2014.

The plant, mine and associated infrastructure, such as the tailings storage facility ("TSF") and waste rock dumps, have been fully permitted for construction to start. Detailed design of the plant is well advanced and is in the process of being transitioned to DRA.

The SAG and ball mills, which were ordered in 2012, have been fabricated. The manufacture of the SAG mill liners and girth gears for both mills will start as soon as the Company has made an investment decision. Due to the advanced nature of the mills fabrication, it is expected that the mills will be ready for delivery well ahead of the dates required in the final project schedule.

An investment decision to proceed with Phase 1 is expected by the Asanko Board in early Q3 2014, followed by a 21 month construction and commissioning period, with first gold targeted during Q1 2016. Early works site preparation activities are due to commence shortly.


Project Schedule and Key Milestones
The Company is working towards the following milestones:

 -  Commencement of early works                          Q2 2014


 -  Commencement of near mine resource definition
    drilling on Dynamite Hill                            Q2 2014


 -  Finalize revisions to the Red Kite financing
    arrangements                                         Q2 2014


 -  Investment Decision for Phase 1                      Q3 2014


 -  Evaluate trade off studies for Phase 2               Q4 2014


 -  Project Construction                                 Q3 2014 to Q1 2016


 -  Commissioning and Ramp-up                            Q1 2016


 -  Steady State Production of greater than 200,000
    oz/year                                              Q2 2016

Notes:


1.  PMI Gold Corporation's Definitive Feasibility Study ("DFS") on the
    Obotan Project, published in September 2012. See filing on www.sedar.com

2.  Estimated cash balance as at February 6, 2014 which was the time of the
    close of the PMI Gold acquisition by Plan of Arrangement.

3.  Project debt facility arranged with Red Kite Mine Finance. See news
    release dated October 24, 2013.

Enquiries:

For further information please visit www.asanko.com

About Asanko Gold

Asanko's vision is to become a mid-tier gold mining company that maximizes value for all its stakeholders. Asanko's flagship project is the fully financed, multi-million ounce Asanko Gold Mine Project located in Ghana, West Africa.

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 neighboring communities.

About DRA

Based in Johannesburg, South Africa, DRA is a well-known and highly respected EPCM contractor, with a strong track record of successfully building, commissioning and operating gold plants across Africa. Recently, DRA has acted as EPCM contractor for Randgold Resources on the 7.2Mtpa gold processing facilities and associated infrastructure at the recently built and commissioned Kibali site in the DRC and is currently working as an EPCM contractor for Aureus Mining at their New Liberty Project in Liberia.

About Knight Piesold

Knight Piesold is an international consulting company providing engineering and environmental services for the mining, power, water, transportation and construction sectors. Knight Piesold has been involved in the design of tailings management facilities for over 400 mining projects throughout the world. Knight Piesold has established strong working relationships with specialist groups that provide support for the design of tailings thickeners, slurry pipelines, filtering plants, and paste tailings plants in order to provide complete and comprehensive design and operational expertise for tailings management.

To view the Attachment - Flow Sheet for the 3Mtpa CIL Process Plant, please visit the following link: http://media3.marketwire.com/docs/937600.pdf

Forward-Looking and other Cautionary Information

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address estimated resource quantities, grades and contained metals, possible future mining, exploration and development activities, 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, 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 20-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.

Contacts:
Alex Buck, Manager - Investor Relations
Telephone: +44-7932-740-452
Email: [email protected]

Greg McCunn, Chief Financial Officer
Telephone: +1-778-729-0604
Email: [email protected]

Asanko Gold Inc.
General enquiries:
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
The pace of innovation, vendor lock-in, production sustainability, cost-effectiveness, and managing risk… In his session at 18th Cloud Expo, Dan Choquette, Founder of RackN, discussed how CIOs are challenged finding the balance of finding the right tools, technology and operational model that serves the business the best. He also discussed how clouds, open source software and infrastructure solutions have benefits but also drawbacks and how workload and operational portability between vendors an...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet and...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of D...
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.