AMN - GHANA: Country now Africa’s top gold producer

Asante Gold Corporation notes that Ghana has overtaken South Africa as the largest gold producer in Africa. The West African nation produced 4.8 million ounces in 2018 compared to 4.2 million ounces in South Africa, according to Bloomberg.

Ghana's production is set to increase again with the imminent re-start of the AngloGold Ashanti Obuasi mine, a 66-million-ounce global gold resource, which has an annual production target of more than 350,000 ounces.

Asante's Kubi Gold Project is just 16km south of the Obuasi mine along the prolific Ashanti Gold Belt.

Asante is continuing to evaluate the new 'disruptor' SMD mining technique for application at Kubi. SMD is a large bore precision drilling method that enables direct mining of narrow deposits.

The SMD method is being developed and commercialised by Anaconda Mining Inc, in collaboration with Memorial University of Newfoundland and utilises technology proven in other industries. Anaconda has announced a 'proof of concept' field trial at one of their deposits in Newfoundland, targeting to start-up in late August/September with the trial lasting around two months.

The innovative SMD method has many advantages over conventional narrow underground mining techniques and appears well suited to the plus-5 g/t Kubi gold style mineralisation.

Initial research indicates that:

• SMD is low CAPEX - multiple SMD drills could be contractor leased, no costly processing plant to build, no crushing, grinding or CIL/cyanide circuit, or tailings dams required;

• No underground development, minimising permitting and construction time and costs;

• Early cash flow from direct on-site recovery of gold from low CAPEX gravity circuit with tails to be dewatered, sampled, trucked off-site and sold to local processing plants;

• Production is scalable - each SMD drill estimated to produce +100 tonnes per day;

• No open cuts, pre-stripping or pit backfilling, no villages to move, giving minimal environmental impact;

• Production is from direct drilling of about 2.5-metre diameter holes, to be backfilled on completion with cemented waste, and revegetated;

• Environmentally green - SMD drills would be electric, powered by solar farm with mains grid storage and draw down;

• Low OPEX - initial estimates indicate less than half of conventional underground mining costs or circa 2 g/t gold at current gold prices; and

• Increased worker safety - no workers underground.

Asante's president and CEO Douglas MacQuarrie said: "Asante is excited about the potential for this new 'disruptor' technology to transform Kubi from a gold deposit to a gold producer.

"Like the invention of hydraulic fracking turned previously uneconomic gas and oil deposits into highly economic production, so SMD mining has the potential to unlock major value in the narrow, hard rock mining space. We will continue to closely monitor developments as they occur."

The company also announces a private placement to accredited investors on a best efforts basis for aggregate gross proceeds of up to $250,000.

Proceeds from the private placement will be used for general working capital purposes.

Asante is continuing to develop its Kubi Gold Mine project towards production, and is exploring its Keyhole, Fahiakoba and Betenase concessions/options for new discoveries, all adjoining or along strike of major gold mines near the centre of Ghana's Golden Triangle.

www.asantegold.com