Asante Gold Corporation has commenced production at the Russel Starter Pit, part of its Bibiani Gold Mine in Ghana, following receipt of crucial permits from local regulatory authorities. The first delivery of mineralised material to the Bibiani processing plant marks a significant milestone in Asante’s strategy to scale production.
The Russel deposit, located 3.8 kilometres from the Bibiani process plant, holds an estimated 119,000 ounces of measured and indicated gold resources, grading at 1.80 grams per tonne. This latest development positions Asante to accelerate its production plans, with the company targeting output of more than 500,000 ounces annually by 2028.
Dave Anthony, Asante’s President and CEO, hailed the achievement, stating, “The start of production at Russel represents another successful step in growing Asante’s portfolio.” He added that the Russel project, the third satellite pit to be developed since Asante’s acquisition of Bibiani, benefits from streamlined regulatory approvals, including the recent re-routing of the Bibiani-Goaso highway, unlocking further oxide mineralisation.
Regulatory Milestones
On September 10, 2024, Asante Gold secured a supplementary permit from Ghana’s Environmental Protection Agency (EPA) to mine at the Russel Pit. The following week, the Minerals Commission granted an updated mine operating permit, allowing full-scale operations to proceed.
These timely approvals reflect Asante’s extensive engagement with local communities and government stakeholders, underscoring the project’s strong local support.
Production Outlook
Initial mining at the Russel Starter Pit began on September 17, 2024, with the mobilisation of a mining fleet managed by local contractor Vuluxx Company Limited. Vuluxx, a Ghanaian-owned firm, has been tasked with site preparation and infrastructure development. The company’s fleet, including up to 56 haul trucks, is expected to reach full capacity by October 30, 2024.
Over the next 30 months, the Russel Starter Pit is expected to deliver 1.9 million tonnes of ore at a grade of 1.62 grams per tonne. This production will supplement material from Bibiani’s Main Pit, bolstered by the recent diversion of the highway.
Asante also plans to extend the known Russel resource along strike and down-plunge. Current drilling efforts aim to convert inferred resources into higher classifications, while exploring the feasibility of transitioning to underground mining—a key component of Asante’s long-term strategy.
A Step Toward Larger Ambitions
Asante’s Bibiani-Chirano complex is set to become the seventh-largest gold-producing district in Africa. Anthony noted that Bibiani-Chirano would also be the only Tier One gold district on the continent not held by a major producer, positioning the company for significant growth in the coming years.
Asante’s strategic progress, including the ongoing construction of a sulphide treatment plant, is central to its broader ambitions of achieving half a million ounces in annual gold production by 2028.
Source:norvanreports.com