Asante Gold Corporation has announced that following receipt of all necessary permits from the Ghanaian authorities, delivery of first mineralised material from the Russel Starter Pit to the Process Plant at the Bibiani Gold Mine has been achieved. 

Located 3.8 kilometres from the Bibiani process plant, the Russel deposit contains 119,000 ounces of measured and indicated gold resources (open pit) at a grade of 1.80 grams per tonne, with mineralogy similar to the Bibiani Main Pit. 

“This is the third satellite pit explored, defined and optimised by Asante since acquiring the Bibiani properties, and the start of production at Russel represents another successful milestone on our journey to grow Asante’s production to more than 500,000 ounces by 2028,” stated Dave Anthony, President and CEO, who added, “Approval for mining at Russel follows other major catalysts, including the re-routing of the Bibiani-Goaso highway, which will allow us to access additional oxide mineralised material, and further progress on the construction of the Bibiani sulphide treatment plant. Once fully ramped up, Bibiani-Chirano will be the seventh largest gold producing district in Africa and the only Tier One Gold District in Africa held outside of a major gold producer.”

Highlights

First oxide mineralised material has been mined from the upper benches of the Russel Starter Pit on September 17, 2024

Timely issuance of permits follows extensive engagement with the local communities, traditional leaders, and other stakeholders, underscoring strong support from Asante’s community partners and government regulators for the project.

On September 10, 2024, the Ghana Environmental Protection Agency (“EPA”) granted Asante Gold Bibiani Limited a supplementary permit to undertake mining at the Russel Pit. This satisfies a key pre-condition to extending the Mine Operating Plan southward to Russel.

Subsequently, on September 16, 2024, the Minerals Commission of Ghana issued an updated Mine Operating Permit to include operations at Russel.

Vuluxx Company Limited (“Vuluxx”), a local Ghanaian contractor, was engaged to complete site preparation work, which is well advanced and includes construction of a one-kilometre haulage road linking the existing mining infrastructure.

Oxides from the starter pit are expected to yield 90% gold recovery using gravity and carbon-in-leach treatment, with initial grade control drilling well advanced. 

The mobilisation of the initial mining fleet has been completed and will continue as production increases over the coming weeks, with a full run rate expected by October 30, 2024.

Ghanaian Owned Contractor Vuluxx Mobilized

Ghanaian-owned and Bibiani-based, Vuluxx mobilised its team to site during the month of May 2024 and commenced mine infrastructure development, including vegetation clearing, topsoil stockpiling, and preparatory work on the Russel haul road and laydown areas.  

Vuluxx’s fleet will peak with five excavators sized with up to a total of 56 haul trucks and associated ancillary equipment. 

Vuluxx’s experienced management team has over 24 years in the industry, and Asante is excited to be working with another local Ghanaian contractor.

 Project Details

The Russel Starter Pit will operate for the first 15 months and will immediately be followed by Russel Cut 2. It is projected to deliver a total of 1.9Mt at 1.62g/t over a period of 30 months to the Bibiani process plant.

This material will supplement production from the Main Pit oxides, which have been unlocked after the recent diversion of the Bibiani-Goaso highway.

The Russel Starter Pit is just over 390 metres in strike and will reach a depth of 168 metres from surface.Pit slope design parameters are consistent with those determined by the international consulting group SRK. 

Oxidation reaches a depth of 60 metres, transitioning to sulphide mineralization from 80 metres. 

It is anticipated that the pit can be excavated without the use of explosives to a depth of 50 metres.

The mining contractor will provide all mining services, including waste removal and transportation of mineralised material to the ROM pad.

Asante is in the process of extending the known Russel resource down plunge and along strike to the south. 

The current drilling is anticipated to not only convert inferred mineralisation but also to confirm the suitability of the resource for underground mining methods. 

A preliminary study into the potential transition to underground mining at Russel will be undertaken in line with Asante’s strategy.