Modern Mining February 2017

MINING News

Asanko Gold Inc, listed on the TSX and NYSE MKT, has announced production results for the fourth quarter of 2016 (Q4) from Phase 1 of the Asanko Gold Mine (AGM), located in Ghana. Ore mining rates in the quarter aver- aged 433 353 tonnes per month (tpm) at an average mining grade of 2,0 g/t. Ore mining took place from the central portion Impressive quarterly performance by Asanko Gold Mine of the pit as well as the newly opened up ‘eastern flank’. The dual ramp system was fully commissioned enabling access from both the eastern and western sides of the Nkran pit. Focus on waste mining shifted to the north and western sides in prepara- tion for the next sequence of ore mining in the centre and east of the pit. The processing plant operated at an The Asanko processing plant operated at an annualised rate of 3,6 Mt/a (20 % above design) during Q4 following crushing circuit upgrades in late Q3 2016 (photo: Asanko Gold).

annualised rate of 3,6 Mt/a (20 % above design) during the quarter following the crushing circuit upgrades in late Q3 2016. In addition, metallurgical recover- ies continued to exceed expectations at 94 %. With the benefit of six months of steady-state operations data, the com- pany expects these recoveries to continue into the foreseeable future. As a result, gold production for the quarter averaged 19 000 ounces per month, which is well above the original feasibility parameters. Gold production for the quarter was 57 178 ounces with gold sales of 58 483 ounces at an average realised price of US$1 199 per ounce, generating gold sales revenue of US$70,1 million. Commenting on the quarter’s perfor- mance, Peter Breese, President and CEO of Asanko Gold, said, “The operations once again had an impressive quarter with record production of over 57 000 ounces. With the mine now delivering against expectations and the process plant run- ning steadily at 300 000 tonnes per month, or about 20 % above design, we enter 2017 with a high performance operating asset that will position us well to finance our Phase 2A expansion project with cash flow from the operations. “Such a strong operating performance would not be as meaningful without the requisite safety performance and I’m again delighted to report that no Lost Time Injuries were recorded during the quarter. It underscores the tremendous efforts of the on-site team who I commend for their dedication and hard work during a trans- formational year.” 

Ramp-up at Montepuez progressing well ASX-listed Mustang Resources reports that its strategy to ramp up production and gen- erate the first sales revenue at its Montepuez ruby project in Mozambique is firmly on track, with commissioning of the relocated processing plant now completed. The relo- cation has placed the plant closer to the key Alpha deposit and important water sources. Production is currently ramping up to the targeted rate of 525 tons/day (approxi- mately 11 025 tons per month, assuming 21 operational days per month running one shift), which is forecast to result in a sub- stantial increase in the company’s monthly ruby production.

put rates,” says Mustang’s MD, Christiaan Jordaan. “At the same time, we have achieved a key milestone for Mustang with the first commercial shipment of rubies recovered through bulk sampling as well as our highly successful prospecting teams that form part of our local community engagement and employment programme.” Mustang reports that it mined and stockpiled 15 585 m 3 of ruby-bearing gravel (including the immediate material above and below the gravel contacts) from the Alpha deposit during the period from the start of the bulk sampling programme to 20 January 2017. Of this total, 7 290 m 3 was processed through the plant resulting in the recovery of 1 638,76 carats of high quality ruby. In addition to these recoveries, Mustang has used prospecting teams to assist in its exploration programme and to acceler- ate the discovery and testing of new areas which can then be followed up with bulk sampling and auger drilling. The company says this strategy has already proven itself to be highly successful in covering a great deal of ground and rapidly testing new areas. 

Mustang also reports that it has sent its first commercial batch of rubies to US ser- vice providers and customers. These include the highly regarded gemstone cutter Meg Berry and leading jewellers in California. This shipment is aimed at enabling Mustang to obtain further opinions from experts about the range in potential ruby values and the best marketing strategies to unlock their maximum value. “The initial results following the plant relocation suggest we can triple through-

16  MODERN MINING  February 2017