AMN - GHANA: Record gold production at Asanko

Asanko Gold Inc achieved record quarterly gold production of 64,440 ounces during the three months ending September 30 at the Asanko Gold Mine in Ghana. The project is a 50/50 joint venture with Gold Fields Ltd and is managed and operated by Asanko.

During the quarter, 1.11 million tonnes of ore was mined and the average gold grade achieved was 1.4 g/t from 1.44 million tonnes milled with the mine on track to meet its yearly guidance of 225,000-245,000 ounces.

Ore was mined from the Nkran, Esaase and Dynamite Hill pits as well as ore stockpiles. At Nkran, waste mining operations substantially concluded the final stage of the western portion of the Cut 2 pushback. During the quarter, 4.71 million tonnes of waste and 320,000 tonnes of ore at an average gold grade of 1.8 g/t were mined from the Nkran pit.

The Esaase pit delivered 620,000 tonnes of ore at an average gold grade of 1.3g/t with 1.53 million tonnes of waste mined. Dynamite Hill delivered 170,000 tonnes of ore at a gold grade of 0.8 g/t with 130,000 tonnes of waste mined.

Asanko also generated record revenue of $91 million from selling 63,009 ounces of gold in the quarter, realising an average price of $1,443 per ounce.

Asanko Gold CEO Greg McCunn said, “During the third quarter, we substantially completed the Cut 2 pushback at the Nkran pit of the mine, concluding a significant capital program that allows the mine to focus on generating meaningful free cash flow.”

He added that the company had received $10 million from JV partner Gold Fields during the quarter and was expected to receive another $10 million on or before December 31 to further boost the corporate balance sheet.

The operation continued its strong safety performance with no lost time or recordable injuries during the quarter. As at September 30, 2019, the mine achieved over 30 months without an LTI.

The JV received notification from Rand Merchant Bank confirming the satisfaction of various conditions precedent associated with a $30 million revolving credit facility for the JV, which is now available to draw. The company and JV have no drawn debt.

Asanko Gold Mine is a multi-deposit complex with two main deposits, Nkran and Esaase, and nine satellite deposits.

www.asanko.com