During the past six months we have recruited a high-caliber management team capable of building and commissioning the mine on time and within budget. In addition to this considerable strength we already have approximately $195 million in cash in our treasury. These two strengths together with the now clearly robust Esaase Gold Project places Asanko in an enviable position considering the challenging state of the capital markets. We are well placed to take the project to the next level and have commenced negotiations with various funding institutions with a view to having a fully financed Project by completion of the DFS."
On behalf of the Board of Directors,
Peter Breese, President & CEO
About Asanko Gold Inc.
Asanko's vision is to become a mid-tier gold mining company that maximizes value for all its stakeholders. Our immediate focus is on near term gold production at our multi-million ounce Esaase Gold Project located in Ghana, West Africa; a highly favourable and prospective jurisdiction. Asanko is managed by highly skilled and successful technical, operational and financial professionals. The Company is well financed with no debt, and is strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighbouring communities.
Asanko trades on the TSX and the NYSE MKT under the symbol AKG.
Pre-Feasibility Study Executive Summary
The Company engaged DRA Mineral Process South Africa to manage a PFS on the Esaase Gold Project based on the October 2012 Mineral Resource Estimate ('MRE') prepared for Asanko by Minxcon. The PFS was completed using the following parameters:
- Life of mine minimum 10 years- Average production 200,000 ounces of gold per annum- Ore mining rate 5 million tons of fresh ore per annum- Cut-off grade 0.6 g/t gold- Testwork Recovery Oxide 84.7%, Transitional 91.2% and Fresh Ore 94.2%(4)- Gold price $1,400 per ounce
The key considerations in the PFS were the preferred mining and processing route, the scale of the operation, throughput rate, project life and community and environmental impacts. The minimum life of the project is in excess of 10 years, but has the potential to be significantly increased, given the number of untested targets within close proximity to the current resource base as well as improved modifying factors that emerged at the end of the PFS. The PFS is therefor considered as a base case scenario.
The Esaase Gold Project is located in Ghana, West Africa (Figure 1). Ghana is Africa's second largest gold producer and has been producing gold on a large scale for many years. Ghana has many internationally recognised Gold mining companies operating in the country including but not limited to AngloGold Ashanti, Newmont, Goldfields and Perseus.
To view Figure 1, visit the following link: http://media3.marketwire.com/docs/AsankoProject_Location.jpg
Mineral Resource Estimation (MRE)
The Company engaged Minxcon, a South African based mineral resource consultancy firm to complete the MRE for the Esaase project in Ghana. Minxcon has many years of Ghanaian experience and has worked extensively in Ghana on the Tarkwa and Damang deposits for Goldfields. Minxcon was engaged to review the mineral resource estimate and mine plan for opportunities to improve the minable ore grade and/or reduce the strip ratio during the early years of production. Minxcon concluded that there is an opportunity to improve the minable ore grade by using selective mining methods rather than the bulk mining method as proposed in the September 2011 Pre-Feasibility Study ('2011 PFS').