Asante Gold Corporation has announced the successful completion of a Definitive Feasibility Study (DFS) for its Bibiani Underground Mine, reinforcing the mine’s potential to extend its operational life and provide significant returns. The study estimates an initial seven-year life for the underground project, with annual production set to exceed 250,000 ounces of gold from 2026 onward.
This development marks another milestone for the Canadian-based company, which has revitalized the Bibiani Mine since acquiring the property in 2021. Under the stewardship of CEO Dave Anthony, Asante is positioning itself to capitalize on rising global gold prices while contributing to the economic development of Ghana, a major gold-producing country.
Promising Financial Metrics
The DFS reveals a compelling financial outlook. The underground mine is projected to produce 831,000 ounces of gold at an all-in sustaining cost (AISC) of $1,035 per ounce, significantly below the current gold price of $2,500 per ounce used in the study. The post-tax Net Present Value (NPV), calculated at a 5% discount rate, is $516 million, with an Internal Rate of Return (IRR) of 71%.
Initial capital expenditure for the project is estimated at $116 million over two years, to be partially offset by pre-completion revenues of $33 million. The study forecasts a net cash flow of $675 million over the mine’s life, offering attractive returns for shareholders.
“These results reaffirm the significant value we can unlock at Bibiani through underground mining,” said Anthony. “The DFS underscores our commitment to sustainable and profitable mining operations that benefit all stakeholders, including our host communities in Ghana.”
Strategic Project Design
The feasibility study, developed by Bara International with input from Middindi Consulting and SLR Consulting, focuses on underground mining beneath the existing Bibiani Main and Walsh open pits. The mine plan incorporates 11.93 million tonnes of ore at an average grade of 2.36 grams per tonne (g/t) of gold, building on proven and probable reserves.
Advanced geotechnical assessments informed the selection of mining methods tailored to the characteristics of each deposit. The Bibiani Main orebody, with its steep 80-degree dip, will utilize sublevel open stoping with cemented rockfill. Meanwhile, the Walsh orebody, characterized by shallower dips, will employ mechanized cut-and-fill techniques.
The project will leverage existing infrastructure, including the Greg Hunter Decline, a trackless underground tunnel extending 630 meters from the surface. This decline will be upgraded with a conveyor system to streamline ore transport to the Bibiani Process Plant.
Operational Efficiency and Infrastructure Enhancements
Central to the DFS is the optimization of the Bibiani Process Plant, originally commissioned in 1997 and refurbished under Asante’s management. Scheduled upgrades to the sulphide recovery circuit are expected to deliver a gold recovery rate of 92% when the first underground ore is processed in late 2025.
The transition from open-pit to underground operations is designed to ensure minimal production disruptions. Open-pit mining will continue until underground operations ramp up to full production in 2027.
Manpower requirements and equipment schedules have been meticulously planned to align with operational demands. Drawing on its experience at the Chirano Gold Mine, Asante has standardized equipment fleets across its operations to maximize efficiency and reduce costs.
Economic Scenarios and Robust Returns
The DFS evaluated the project under two gold price scenarios—$1,900 per ounce and $2,500 per ounce. Even under the lower price assumption, the project remains highly profitable, with an IRR of 43% and an NPV of $280 million. At the higher price scenario, the returns soar, demonstrating the project’s resilience to market fluctuations.
Operating costs are projected at $35.20 per tonne of ore, with additional general and administrative costs of $0.83 per tonne. This cost efficiency positions Bibiani as a competitive player in the global gold mining landscape.
Next Steps and Long-Term Vision
Key next steps include selecting a mining contractor by Q3 2025 and commencing underground development in Q4 2025. Full-scale underground production is anticipated by 2027, ensuring a seamless transition from open-pit operations.
Ongoing exploration activities aim to upgrade inferred resources, which currently total 15.18 million tonnes at a grade of 2.36 g/t, potentially extending the mine’s life beyond the initial seven years.
Asante is also committed to strengthening infrastructure and community relations in Ghana. The company’s recent completion of the Bibiani-Goaso Highway bypass exemplifies its integrated approach to development, which balances operational goals with regional benefits.
A Bright Future for Asante and Bibiani
The Bibiani Mine, situated in Ghana’s Western North Region, boasts a legacy of over 4.5 million ounces of historical gold production. Asante’s bold vision for the underground expansion builds on this legacy, aligning with its broader strategy to optimize its portfolio of projects in Ghana, including the Chirano and Kubi mines.
While the DFS outlines a clear roadmap for Bibiani, it also underscores Asante’s broader commitment to sustainable mining practices and long-term value creation. The company’s focus on innovation, efficiency, and community engagement positions it as a leader in Ghana’s mining sector and a formidable player on the global stage.
As the gold market continues to offer attractive opportunities, Asante Gold Corporation’s Bibiani Underground Project stands out as a beacon of promise, merging profitability with sustainability in one of the world’s most prolific gold belts.
Source: norvanreports.com