Connect with us

Hi, what are you looking for?

Saturday, Jun 15, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Galiano Gold awards mining contract for Asanko Gold Mine in Ghana

The JV partners are searching for ways to improve operational efficiency and reduce operating costs

Galiano Gold awards mining contract for Asanko Gold Mine in Ghana
The Asanko Gold Mine in Ghana. Image via Galiano Gold.

Galiano Gold Inc. (TSX: GAU) (NYSE: GAU) awarded a mining contract for its Asanko Gold Mine (AGM) in the Asankrangwa gold belt in Ghana, which it operates as part of a joint venture (JV) with Gold Fields Ltd. (NYSE: GFI).

Galiano said on Monday that the JV partners selected an unnamed contractor to restart mining operations at the AGM after a competitive bidding process. The company intends on resuming hard rock mining operations in in Q4, 2023.

In March, the company published the details of a new life of mine (LOM) plan in a technical report. The report details an 8.5 LOM with an after-tax net present value (NPR) of 5 per cent discount rate of USD$343 million with a base price of $1,700 per ounce of gold.

As detailed in the 2023 technical report, the contractor’s tasks involve mining from multiple deposits. Mining at the Abore site is planned to commence in the last quarter of 2023, and it is expected that higher-grade mill feed will be available by the second quarter of 2024.

The estimated annual gold production for 2023 is projected to approximately double by 2025. The output is expected to surge from the current guidance of 100,000 to 120,000 ounces to around 250,000 ounces per year.

The mining equipment at the Abore and Miradani North locations has also been updated to include 100 ton haul trucks. This optimized fleet should bring considerable advantages to the operations.

“Galiano remains on track to deliver on the Life of Mine Plan described in the 2023 Technical Report, and we look forward to establishing the AGM as a significant Ghanaian gold mine, averaging nearly 220,000 ounces per year over an 8.5 year mine life,” said Matt Badylak, Galiano’s president and CEO.

The JV partners are searching for more ways to improve operational efficiency and reduce operating costs. It has also started an exploration program at AGM’s mining areas to outline more resources in already known deposits, as well as to explore entirely new potential spots within the 476 square kilometer land package.

AGM is a complex with multiple deposits, including four primary open-pit mining areas: Abore, Miradani North, Nkran and Esaase. It also has several smaller deposits scattered along the Asankrangwa gold belt.

The complex includes a processing plant that can handle 5 million tonnes of material per year using a carbon-in-leach process. The mine holds confirmed reserves of 48.9 million tonnes of material, which have a grade of 1.31 grams of gold per tonne. This equates to a total of 2,068,000 tonnes of gold contained within the reserves.

Galiano Gold shares were flat on Monday at $0.80 on the Toronto Stock Exchange.

Shares of Goldfield rose by 0.6 per cent on Monday to $13.91 on the New York Stock Exchange.

Ghana gold map. Image via Galiano Gold.

Read more: New Found Gold reports more high-grade drill results in Eastern Canada

Read more: Aya Gold & Silver acquires Moroccan copper-silver project for US$4.9M

Ghana represents a significant opportunity for miners

Ghana has a lot of natural resources like gold, bauxite and diamonds. It’s one of the top spots in Africa for mining. It also comes with a lot of experience with mining, which means the country has the right infrastructure and skilled workers to support these operations. The government in Ghana is also very supportive of mining, with clear rules and incentives to encourage companies to set up mining operations.

Gold Fields and AngloGold Ashanti (JSE: ANG) (NYSE: AU) (ASX: AGG) agreed in March on the main terms for a prospective joint venture in Ghana, which would encompass Gold Fields’ Tarkwa mine and AngloGold Ashanti’s adjacent Iduapriem mines.

Currently, the Tarkwa Mine is managed by Gold Fields Ghana, with Gold Fields possessing a 90 per cent stake and the Government of Ghana owning the remaining 10 per cent. The Iduapriem Mine, on the other hand, is entirely owned by AngloGold Ashanti. Both of these mines are situated near the town of Tarkwa in the Western Region of the country.

In March, the Newmont Ahafo North Project, owned and operated by Newmont Corporation (TSX: NGT) (NYSE: NEM) earmarked GHC14 million (approximately $1.6 million) for resettlement packages for 250 households. The project covers five major towns. This plan also includes using a portion of the package to relocate local businesses.

Additionally, the mining conglomerate has compensated the owners of 800 speculative structures on the property with a relief package exceeding GHS40 million ($40 million).

All of this comes at a time where several United States government agencies have been issuing warnings to business investing in the gold industry in Sub-Saharan Africa to “apply strengthened due diligence practices” to avoid or prevent the exploitation of resources and people.


Follow Mugglehead on Twitter

Like Mugglehead on Facebook

Follow Joseph Morton on Twitter

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


"The initial surveys are poised to deliver robust insights utilizing multiple sensors," Draganfly co-founder Cameron Chell said

Alternative Energy

Bisconti Research found that 77 per cent of 3.5 million survey participants were in favour of atomic energy


The shareholders approved the election of the board of directors, and reappointed PricewaterhouseCoopers LLP as auditor


Now that the Water Discharge Permit is in hand there are only a couple more regulatory hurdles