Asante Gold (CSE:ASE) is preparing to pour gold in the next two to three weeks at its Bibiani Gold mine in Ghana.
President and CEO Dave Anthony spoke with Brieanna McCutcheon From The Floor at PDAC 2022 about how the company aims to produce 400k gold oz. per year by late Q3 2022 and is well-financed to do so.
Situated in the Western North region of Ghana, Bibiani has previous production of more than 4 million oz. and is fully permitted with mining and processing infrastructure on site, including a 3 million tonnes per annum mill and processing plant. Asante purchased the asset last August, refurbished it, then mobilized for mining in January. The mining program is moving 6 million tonnes of material per month. The project’s execution plan is well ahead of the company’s gold pouring schedule.
Bibiani’s operations are running smoothly with the 5 million oz. Chirano gold mine nearby soon to be acquired. Gold pouring is a principled milestone, which means the company is generating cash, which is essential for investors who are looking into producing companies. Production may fund exploration, making it a sustainable activity.
Mr. Anthony says that “gold is the place to be” as economies are suffering in the current inflationary environment. He expects stable gold prices topping out at US$2,200-$2,300 per oz. over the short-to-medium term.
The company is operating on a margin of US$600 per gold oz., which leads to US$240 million in free cash flow from 400k oz. of annual production.