By Joshua Worlasi AMLANU
Asante Gold Corporation is ramping up operations at its Bibiani mine, targeting a significant surge in gold production.
The company announced plans to more than double its monthly gold output by February 2025, bolstered by an aggressive expansion strategy and the deployment of proceeds from its US$100million gold forward sale agreement.
According to a statement released on Friday, January 31, Asante expects monthly gold production at Bibiani to hit 9,000 ounces by February, increasing further to 12,000 ounces by June and reaching 23,000 ounces by September. The anticipated production surge will be driven by an expansion of the company’s mining fleet, which is set to double by mid-year.
“We are pleased to report a rapid increase in operational activities at the Bibiani mine, funded by the US$100million gold forward agreement with our key strategic partner Fujairah,” said Dave Anthony, Asante’s President and CEO.
“This will more than double monthly gold production by February 2025, with additional catalysts for growth expected to follow over the course of the year, supported by the company’s financing plans that continue to advance,” he added.
Russel Pit expansion surpasses initial targets
A major contributor to the rising production figures is the expansion of the Russel pit, which has exceeded initial expectations. Over the last quarter of 2024, gold production from the pit surged by more than 700 percent, reaching over 7,000 ounces per month.
The company has launched an aggressive drilling campaign to confirm further southward extensions into Cutback #3 in the second half of 2025, ensuring a steady supply of mineralised material.
“The Russel pit continues to outperform our expectations,” Anthony noted. “This rapid increase in equipment availability from our primary mining contractor has allowed us to advance at a much faster pace than originally projected.”
Main pit and underground mine developments
At the Main pit, mining activities have accelerated, with stripping operations advancing 200 percent ahead of schedule since the build-up programme commenced in November 2024.
To sustain production levels, the company said the mining contractor is expanding its fleet, while work on Main pit Cutback #2 is set to begin in the first quarter of 2025.
The company is also preparing to transition to underground mining at Bibiani, following the recent completion of a Definitive Feasibility Study (DFS). Conducted by engineering firms Bara International, Middindi Consulting, and SLR Consulting, the study projects underground production of 831,000 ounces of gold over an initial seven-year period at an all-in sustaining cost (AISC) of US$1,035 per ounce.
The underground mining phase is expected to provide a more cost-effective and environmentally sustainable alternative to open-pit operations. With projected operational costs of US$1,050 per ounce—significantly lower than the US$1,341 per ounce associated with open-pit mining, Asante aims to optimise production efficiency while reducing its environmental footprint.
The DFS estimates an initial capital investment of US$116million over two years, with a portion of the cost offset by revenue from 33,000 ounces of gold mined during the development phase. This underground transition is expected to be fully funded by revenues from ongoing open-pit operations.
“Our strategy is to integrate underground and open-pit operations in a phased approach to ensure uninterrupted ore supply to the plant,” Anthony said. “By shifting to underground mining, we can extend Bibiani’s life while reducing stripping ratios and limiting environmental disturbances.”
