Welcome!

News Feed Item

Asanko Gold Mine Approved for Construction

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/17/14 -- Highlights:


--  Board approval to proceed with construction of fully permitted Phase 1
    Asanko Gold Mine.
--  Capital Control Budget Estimate ("CBE") of US$295 million, in-line with
    Definitive Feasibility Study(1) ("DFS"), and fully financed with US$231
    million(2) cash and US$150 million(3) project debt facility.
--  Preliminary mine planning, based on the updated Mineral Resource
    Estimate ("MRE"), confirms mine plan in-line with DFS, producing 2.25
    million ounces of gold over 11.5 year life of mine ("LoM").
--  Definitive Project Plan with updated MRE to be published as an NI 43-101
    compliant technical report by Q4 2014.
--  Ground breaking planned in Q3 2014 with first gold pour expected in Q1
    2016.

Asanko Gold Inc. ("Asanko" or the "Company") (TSX: AKG)(NYSE MKT: AKG) is pleased to announce that the Board of Directors have made a positive financial investment decision to proceed with the construction of Phase 1 of the Asanko Gold Mine ("AGM" or the "Project") in Ghana.

Phase 1 is based on the construction of the Obotan Gold Project which was acquired during the takeover of PMI Gold Corporation ("PMI Gold") in February 2014. Phase 2 anticipates the inclusion of the adjacent Esaase deposit. Early works at the project site has been underway since April in preparation for a positive investment decision with progress on schedule. Project construction will commence shortly, with ground breaking expected within the next month. First gold is targeted in Q1 2016, with steady stage production anticipated in Q2 2016.

Asanko's President and CEO, Peter Breese, said: "The Board's approval of Phase 1 of the Asanko Gold Mine is the first step towards achieving our vision of becoming a mid-tier gold producer. Our detailed engineering work to-date has confirmed the robustness of the Project, with the CBE in-line with PMI Gold's 2012 DFS. Now that we have approved the Project, we are targeting steady state production of approximately 200,000 ounces per year in Q2 2016.

With the Project fully permitted, financed and a team of experienced mine builders and operators in place, we will, in parallel with construction, continue with our growth strategy. In particular we have begun to evaluate the optimal way to implement Phase 2 in order to bring to account the additional 2.2 million ounces of Mineral Reserves(4) at Esaase, while capturing the synergies we forecast when we acquired PMI Gold and created the Asanko Gold Mine."

Asanko Gold Mine - Phase 1

Phase 1 is based on PMI Gold's DFS for the Obotan Project, published in September 2012. The DFS targeted approximately 2.25 million ounces of gold production over an 11.5 year LoM via an open pit contractor mining operation and a 3Mtpa carbon-in-leach ("CIL") processing plant. The primary source of feed material for the CIL plant was the Nkran pit with satellite pits at Adubiaso, Abore and Asuadai being mined later in the mine life. The DFS estimated capital costs of US$296.6 million, cash operating costs of US$626/oz (US$722/oz including royalty and refining costs) and projected robust economic returns at US$1,300/oz gold.

Since acquiring PMI Gold earlier this year, the Company has updated the capital cost estimate to a higher level of accuracy suitable for use as a project CBE. The recently completed CBE estimates a capital cost of US$295 million including contingency for estimating inaccuracy and owner's contingency (see table below). The capital estimate is generally considered accurate to +/- 5%.

The CBE was designed on a modular basis to cater for the possible inclusion of Phase 2 of the AGM on the same site. Phase 1 has incorporated sufficient plant terracing and designed the plant layout and infrastructure to cater for the potential of Phase 2.


----------------------------------------------------------------------------
Asanko Gold Mine -                                          Capital Estimate
Phase 1                                                        (US$ million)
----------------------------------------------------------------------------
Process plant                                                          85.48
----------------------------------------------------------------------------
Mining (pre-production costs)                                          70.59
----------------------------------------------------------------------------
Power infrastructure                                                   18.18
----------------------------------------------------------------------------
Buildings, offices and accommodation                                   12.31
----------------------------------------------------------------------------
TSF, WRD, ROM, water supply, civil works                               23.08
----------------------------------------------------------------------------
CSR, owners team, G&A                                                  47.37
----------------------------------------------------------------------------
EPCM                                                                   15.51
----------------------------------------------------------------------------
Sub total                                                             272.52
----------------------------------------------------------------------------
Contingency & estimating inaccuracies                                  22.75
----------------------------------------------------------------------------
Total                                                                 295.27
----------------------------------------------------------------------------

Asanko is currently finalizing the updated MRE for the Nkran, Adubiaso, Abore and Asuadai deposits and does not anticipate that the MRE will be materially different to the current disclosure. Based on the revised MRE, a preliminary mine plan has been prepared. The Definitive Project Plan is not expected to be materially different to the DFS mining plan of 2.25 million ounces of gold produced over an 11.5 year LoM.

The Company is continuing to work on detailed mine planning and pit sequencing optimizations, including a mine plan for the recently discovered near-mine deposit Dynamite Hill. This detailed mine plan will be included in the Definitive Project Plan, along with updated operating costs and economic return calculations. The results of the Definitive Project Plan are expected to be published by Q4 2014 in a revised NI 43-101 report for the Project.

Phase 1 Project Schedule and Key Milestones

The Company's key Project timelines remain on schedule:


                                               Original              Current
                                               Guidance               Status

Commence early works                            Q2 2014   Nearing Completion
Near mine resource definition drilling at
 Dynamite Hill                                  Q2 2014             Complete
Finalize revisions to the Red Kite
 financing arrangements                         Q2 2014             Complete
Investment Decision for Phase 1                 Q3 2014             Complete
Definitive Project Plan including updated
 MRE                                            Q4 2014              Ongoing
Commence Project Construction                   Q3 2014       Start - August
Evaluate trade off studies for Phase 2          Q4 2014             Underway
Commissioning and Ramp-up                       Q1 2016              Q1 2016
Steady State Production of greater than
 200,000 oz/year                                Q2 2016              Q2 2016

Enquiries:

For further information please visit www.asanko.com.

Notes:


(1) PMI Gold Corporation's Definitive Feasibility Study ("DFS") on the
    Obotan Project, published in September 2012. See filing on
    http://www.sedar.com/.
(2) Estimated cash balance as at June 30, 2014.
(3) Project debt facility arranged with Red Kite Mine Finance. See news
    release dated July 14, 2014.
(4) Mineral Reserve for Esaase contains 22.9Mt grading 1.43g/t Au for 1.05
    million ounces of Proven and 22.5Mt grading 1.40g/t Au containing 1.32
    million ounces of Probable as reported in the NI 43-101 Technical Report
    filed on SEDAR on June 27, 2013.

About Asanko Gold Inc.

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 and permitted, multi-million ounce Asanko Gold Mine Project located in Ghana, West Africa. The mine will be developed in phases. Phase 1 has been approved and construction will commence in Q3 2014, with first gold is targeted in Q1 2016.

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 neighbouring communities.

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.

Cautionary Note to US Investors Regarding Mineral Reporting Standards:

Asanko has prepared its disclosure in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of US securities laws. Terms relating to mineral resources in this press release are defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy, and Petroleum Standards on Mineral Resources and Mineral Reserves. The Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Asanko uses certain terms, such as, "measured mineral resources", "indicated mineral resources", "inferred mineral resources" and "probable mineral reserves", that the SEC does not recognize (these terms may be used in this press release and are included in the public filings of Asanko which have been filed with securities commissions or similar authorities in Canada).

Qualified Persons Statement

Qualified Persons in Respect of Technical Disclosure

The information in this release that relates to Esaase Mineral Reserves is based on information compiled by Mr. Thomas Obiri-Yeboah. Mr. Thomas Obiri-Yeboah is the Senior Mining Engineer of DRA Mineral Projects Mining Division. Mr. Thomas Obiri-Yeboah is a Member of the South African Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) and is a "Qualified Person" under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects'. He has verified the Esaase reserve data disclosed in this news release.

The information in this release that relates to Esaase in-situ Mineral Resources is based on information compiled by Mr Charles Muller of Minxcon. He is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) and is a "Qualified Person" under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects'. He has verified the data disclosed in this release in connection with Esaase including sampling, analytical and test data underlying the information contained in this release. Mr Muller consents to the inclusion of such information in this release in the form and context in which it appears.

Information that relates to Mineral Resources at the Obotan Gold Project is based on a resource estimate that has been carried out by Mr Peter Gleeson, a full time employee of SRK Consulting. Mr Gleeson is a Member of the Australian Institute of Geoscientists (MAIG). Information that relates to Mineral Reserves at the Obotan Gold Project is based on a reserve estimate that has been carried out by Mr Ross Cheyne, a full time employee of Orelogy Mining Consultants. Mr Cheyne is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Both have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC), and as a Qualified Person (by ROPO) as defined in terms of NI43-101 standards for resource estimate of gold. Mr Gleeson and Mr Cheyne have more than 5 years' experience in the field of exploration results and of resource/reserve estimation and consent to and approve the inclusion of matters based on information in the form and context in which it appears.

The Mineral Resource and Mineral Reserve estimates have been prepared in accordance with the 2010 Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserve as incorporated by reference in National Instrument 43-101 of the Canadian Securities Administrators, and is consistent with the Australasian Guidelines and Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (Revised December 2007) as prepared by the Joint Ore Reserves Committee of the AusIMM, AIG and MCA (JORC).

Contacts:
Asanko Gold Inc.
Alex Buck
Manager - Investor Relations
+44-7932-740-452
[email protected]

Asanko Gold Inc.
Greg McCunn
Chief Financial Officer
+1-778-729-0604
[email protected]

Asanko Gold Inc.
[email protected]
www.asanko.com

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
Now that the world has connected “things,” we need to build these devices as truly intelligent in order to create instantaneous and precise results. This means you have to do as much of the processing at the point of entry as you can: at the edge. The killer use cases for IoT are becoming manifest through AI engines on edge devices. An autonomous car has this dual edge/cloud analytics model, producing precise, real-time results. In his session at @ThingsExpo, John Crupi, Vice President and Eng...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, will discuss new ways of thinking and the approaches needed to address the emerging challenges of securit...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
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.
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.