Asanko Gold (TSX: AKG, Stock Forum) advanced its production efforts at the fully funded and permitted Phase 1 of the Asanko Gold Mine, located in Ghana, Africa, when the company had awarded the mining contract for the mine.
According to the news release, construction had begun in August and is rapidly progressing on schedule and within budget. Phase 1 is expected to produce 200,000 ounces of gold annually at a steady state beginning in Q2 2016 with the first gold pour anticipated during Q1 2016.
The main resource for Phase 1 is the Mkran pit, located immediately adjacent to the new plant site currently under construction. Previously mined to a depth of approximately 120 metres, the pit requires 21.7 million tonnes of waste to be pre-stripped before ore mining operations can begin in Q4 2015.
After a rigorous process, the company has awarded the contract for the Nkran pre-strip plus the first year of mining operations to PW Ghana (“PW”), a unit of PW Mining International of Accra, Ghana. Pre-stripping is scheduled to commence in January 2015 with mobilization, clearing and grubbing to take place in November and December 2014.
An updated reserve statement with associated operating costs and revised project economics has been put together in a “Definitive Project Plan”, and will be announced tomorrow, November 13, 2014. Company management will also host a webcast and conference call at 9:00am EST on the same day.
Asanko Gold was in the news recently when the Vancouver-based company provided an update on construction at the Asanko Gold Mine six days ago.
Shares gained 3.87% on the news to $1.88 per share.
Currently there are 174.1m outstanding shares with a market cap of $327.3 million.