Asante Gold begins mining from third satellite pit at Bibiani

Asante Gold (CSE: ASE) has begun mining from the Russel starter pit at its Bibiani gold mine in Ghana following the issuance of all necessary permits by government authorities earlier this week. First mineralized material has been transported to the Bibiani process plant located 3.8 km away.

Russel represents the third satellite pit explored, defined and optimized by Asante since acquiring the Bibiani properties from Australia’s Resolute Mining in 2021. The deposit has 119,000 oz. of measured and indicated gold resources at a grade of 1.8 grams per tonne, with mineralogy similar to the Bibiani main pit, which the company rebooted in 2022.

Over the next 30 months, the Russel pit is expected to deliver a total of 1.9 million tonnes at 1.62 g/t to the Bibiani process plant, supplementing production from the main pit oxides, said Asante, adding that oxides from the pit are expected to yield 90% gold recovery.

“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,” Asante’s CEO Dave Anthony said in a news release.

“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 mineralized material, and further progress on the construction of the Bibiani sulphide treatment plant,” he added.

The company is also in the process of extending the known Russel resource down plunge and along strike to the south. Current drilling is anticipated to not only convert inferred mineralization but to confirm the suitability of the resource for underground mining, it said, adding that a preliminary study into the potential transition to underground will be undertaken.

The combined gold resource of the Bibiani properties is currently estimated at 2.5 million oz. in the measured and indicated category and 1.1 million oz. in the inferred category. This includes nearly 2 million oz. in proven and probable reserves.

Shares of Asante Gold rose 4.5% to C$1.38 a piece on the latest development, giving the Vancouver-headquartered miner a market capitalization of C$614.6 million ($453.4 million).