Corporate News Blog - Mid-Tier Gold Producer Asanko shares its Production Results for Q2 2017
LONDON, UK / ACCESSWIRE / July 21, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Asanko Gold Inc. (NYSE: AKG), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=AKG. The Vancouver, Canada based Company shared on July 19, 2017, its production results for Q2 2017 from its Asanko Gold Mine (AGM) located in Ghana, West Africa. The Company announced that its financial results for Q2 2017 would be declared on August 03, 2017. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Q2 2017 Performance highlights
In Q2 2017, the gold production for the quarter was 46,017 ounces and gold sales were 48,461 ounces. Although the gold production for Q2 2017 was marginally less than Q1 2017, the lower throughput was the result of planned downtimes in the processing facility to enable the P5M upgrade tie-ins. The Company has confirmed that its 2017 gold production guidance of 230,000 - 240,000 ounces remain unchanged. The gold revenue for the quarter was $60 million at an average realized price of $1,238 per ounce. The Company has a strong balance sheet which is on June 30, 2017, showed $55 million in unaudited cash, $0.4 million in gold receivables, and $3.8 million in dore. In Q2 2017, the Company maintained an impressive safety record and no lost time injuries (LTI) were reported. The 12-month rolling lost time injury frequency rate (LTIFR) per million-man hours worked is 0.20.
Sharing his views on the Q2 2017 production performance, Peter Breese, the Company's President, and CEO, said:
"As previously guided, we anticipated gold production this quarter would be lower for three reasons: we mined a low-grade zone in the Nkran pit, we ramped up mining activities at the newly established Akwasiso pit and we had temporary shutdowns in the processing plant to accommodate the installation of the volumetric upgrades from 3.6Mtpa to 5Mtpa, which have now been completed ahead of schedule. Looking ahead, we expect the second half of the year to be stronger as we see the benefits of the plant operating at the annualized rate of 5Mtpa, the grade at Nkran improving, as we mine through the low-grade zone, and the Akwasiso pit delivering planned grades and tonnages. We therefore maintain our 2017 production guidance."
Details on Mining Operations
During Q2 2017, mining operations were concentrated on the low-grade section of the orebodyin thecentre of the Nkran pit with grades averaging 1.5 g/t (grams per tonne). The Ore mining rates for the AGM during the quarter averaged 350,000 tonnes per month (tpm) at an average mining grade of 1.5 g/t.
The waste mining in the western wall push back started in Q2 2017 and as per the recommendations by SRK, the changes in the geotechnical design were incorporated. Once the design elevation was reached, the cut back mining operations were relocated to commence on the southeast sequence of cut 2, which will continue in this area throughout the remainder of 2017.
The Company also started the mining operations at Akwasiso, one of the Company's largest satellite deposits. The ore mining grades are expected to improve in Q3 2017 once the main Akwasiso deposit is exposed and mining operations are ramped up to approximately 70,000tpm of ore.
In Q2 2017, a total of 7,506 tonnes were mined out of which waste tonnes mined was 6,458 tonnes and Ore tonnes mined was 1,048 tonnes. The strip ratio witnessed a marginal increase of 6.2:1, mainly due to waste mining in the western wall push back and the development of the Akwasiso pit.
Details of Resource Reconciliation Initiatives
In Q1 2017, the Company adopted the new CSA Global Mineral Resource Estimate (MRE) and grade control estimation process for the mining operations. The process was fully implemented by end of April 2017 and has been fully operational since May 2017. The Company has started the reconciliation process to measure the entire value chain from gold in the ground through to mill feed and eventual gold production against the MRE. The initial reconciliation between the resource model and the grade control model showed a close correlation of 2% for May, June, and July 2017. The Company is now working on the reconciliation process to validate the design of mining polygons and mining dilution management through to gold production. The Company will share the results in the next few quarters once sufficient operational data has been collected.
Project 5 Million ("P5M") Updates
In Q2 2017, P5M volumetric upgrades were completed nearly a month in advance and within budget. The P5M volumetric upgrades included an upgrade of the tailings dam line and pumping systems. As a result, some significant early results have been achieved via the upgraded plant running on a campaign basis at 625 tonnes per hour (equivalent to 5Mtpa) for significant periods of time. Once the Akwasiso operations pick up in Q3 2017 and the improvements as a result of P5M, the plant is expected to run at 5Mtpa on a consistent basis. The recovery upgrades are due to be completed and commissioned before the end of Q4 2017.
Last Close Stock Review
On Thursday, July 20, 2017, the stock closed the trading session at $1.53, slipping 2.55% from its previous closing price of $1.57. A total volume of 890.29 thousand shares has exchanged hands. Asanko Gold's stock price advanced 9.29% in the last one month. The stock currently has a market cap of $309.11 million.
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