Asante Gold has revealed that the Bibiani gold mine in Ghana will require an initial capital expenditure (capex) of $116m over two years, based on the findings of a definitive feasibility study (DFS).
The DFS, which focuses on underground mining potential below the existing Bibiani Main and Walsh pits, was completed by mining engineers from Bara International with Middindi Consulting and SLR Consulting as contributing sub-consultants.
Asante Gold said that the latest study further reinforces the underground strategy outlined at the prefeasibility stage in the April 2024 Bibiani technical report.
The initial cost will be used for the development, infrastructure, and equipment procurement needed to achieve steady-state production of 2.6Mtpa, as well as the installation of permanent underground infrastructure.
The underground mining will be phased in alongside the open-pit mining at the main pit. This approach will ensure a consistent delivery of mineralised material to the plant, meeting the planned mill throughput.
According to the DFS, the underground mine development at the Bibiani project will have an initial life of seven years.
The Bibiani gold mine is expected to have a gold production of 831,000 ounces.
The DFS projects a post-tax net present value (NPV) of $516m for the Ghanaian gold project. It also estimates an after-tax internal rate of return (IRR) of 71%.
In addition, the study estimates a net cash flow of $675m for the Bibiani gold mine.
Asante Gold CEO Dave Anthony said: “We are on a path to achieving annual production of more than 250,000 ounces in 2026 and beyond, further supported by commencement of underground mining in Q4 2025 and other growth initiatives that have already advanced.
“These include the Bibiani-Goaso Highway bypass in June 2024 to facilitate access to additional mineralised material and completion of the new sulphide treatment plant, which is on track for Q2 2025.”
Asante Gold acquired the Bibiani gold mine in 2021, and mineralised material from the Bibiani underground operation will be processed at the existing Bibiani process plant.
Originally designed by Lycopodium in 1997, the plant incorporates SAG/ball mill grinding and a conventional CIL circuit. It was operated until 2005, after which it was placed into care and maintenance.
Under Asante’s management, the plant underwent refurbishment from Q3 2021 to Q2 2022. The plant was recommissioned in June 2022, with the original design throughput rate of 2.4Mtpa.
By the time the first underground mineralised material is ready for processing, upgrades to the sulphide recovery section of the plant will be complete, allowing for a gold recovery rate of 92%.
Asante Gold plans to select a contractor to initiate and prepare underground mine infrastructure in Q3 2025, with development activities set to begin in Q4 2025. Full production from the underground workings is expected to commence in 2027.
