VANCOUVER – Asante Gold Corp. [ASE-CSE; ASGOF-OTC; 1A0-FSE] has identified a high-grade gold discovery in initial drilling at its South Russel prospect. The discovery is located on the company’s 100%-owned Bibiani mining lease in Ghana, West Africa, 3.8 km from the process plant.
The discovery hole, MGRCD21-047, returned 16 metres at 5.75 g/t gold, and was spotted to test anomalous geophysical responses outlined from Asante’s continuing property-wide surveys. The gold mineralized system is open in all directions with no previous drilling noted in the area:
Hole MGRCD21-047 –returned 16 metres at 5.75 g/t gold from 194 metres, including 7 metres at 9.18 g/t gold from 197 metres. Hole MGRCD22-048 returned 2 metres at 2.53 g/t gold from 101 metres. Hole MGRCD22-048 returned 4 metres at 4 g/t gold from 111 metres. Hole MGRCD22-048 returned 8 metres at 1.80 g/t gold from 121 metres. Hole MGRCD22-048 returned 2 metres at 1.39 g/t gold from 140 metres.
Follow-up drill holes are planned along strike to the north and south of the discovery hole. This target is one of eight high-priority geophysical targets that have been outlined to date on the main Bibiani shear corridor and that will be the subject of additional drill testing.
Dave Anthony, president and CEO, stated: “The assay results announced today at South Russel, as well as the recent resource extension drilling at Walsh, highlight the effectiveness of the 2021 exploration program, including use of IP surveys as a targeting tool in prioritizing drill targets along the Bibiani shear corridor. We are very pleased with the results coming out of our exploration program to date and we look forward to continued success in 2022. We commend our exploration team for their hard work and diligence.”
The process plant refurbishment is on schedule and on budget. All work activities are proceeding as planned, with currently 1,200-plus contractors and employees on site. The plant is being upgraded to provide improved performance, relative to the original design, including the purchase and installation of an up-to-date Knelson 6G concentrator and Gekko ILR (intensive leach reactor) and the construction of a sulphide flotation/regrind facility to be delivered by Q4 2022, that is expected to increase gold recovery to 92%.
The Bibiani mine plans its first gold pour in Q3 2022 and to produce approximately 175,000 ounces of gold in its first 12 months of operation. Thereafter, plans are to produce 220,000 to 270,000 oz/year for a minimum of seven years. Asante is planning to initiate development of an underground mine design at the preliminary economic assessment level of study in Q3 2022, with a view to developing an underground mine operation from 2026. This will provide significant overlap with open-pit mining operations, which are currently scheduled to proceed into 2029.
Asante is focused on developing and operating gold projects, including the Bibiani and Kubi gold mines located on the prolific Bibiani and Ashanti gold belts. Asante is also exploring its Keyhole, Fahiakoba and Betenase projects for new discoveries, all adjoining or along strike of major gold mines near the centre of Ghana’s Golden Triangle.