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Asanko Gold confirms definite mine plan

14th November 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Project developer Asanko Gold on Thursday announced the definitive mine plan for the first phase of its Asanko gold mine, in Ghana, which provided for producing slightly more gold over an extended mine life at among the lowest all-in sustaining costs (AISC) in the industry.

Vancouver-based Asanko noted that at a spot gold price of $1 150/oz, the $295-million project would deliver a $253-million net present value, at a 5% discount, and a 20% internal rate of return.

Over the 12-year life-of-mine (LoM), gold output was expected to be 2.33-million ounces, up from the previous production estimate of 2.25-million ounces over an 11.5-year LoM.

The operation’s AISC were expected to be in the lowest quartile at $781/oz and operating cash costs were expected to total $645/oz.

Asanko pointed out that the project was fully funded with $130-million available in its undrawn debt facility and $228-million in cash on hand.

The first gold pour was pencilled in for the first quarter of 2016, while steady-state production was expected to  ensue in the following quarter.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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