Asanko Gold Confirms “Robust Economics” of First Mine Phase

Asanko Gold Inc. (TSX:AKG,NYSEMKT:AKG) released an optimized mine plan for the first phase of its Asanko gold mine. It includes associated operating costs and “confirms the robustness of the project’s economics.”

Highlights of the plan include:

• Life of Mine (‘LoM’) gold production of 2.33 million ounces over a 12 year life of mine.
• Capital cost of U$295 million, including all associated infrastructure and allowances for contingencies.
• Lowest quartile All-In-Sustaining-Costs1 of US$781/oz; competitive operating cash costs of US$645/oz.
• Project fully funded with US$130 million undrawn debt facility and US$228 million cash on hand2.
• First gold targeted during Q1 2016 and steady-state production in Q2 2016.
• Robust project economics with strong cash flow generation even in a weak gold price environment.

Peter Breese, president and CEO of Asanko, commented:

The Definitive Project Plan confirms the attractive project economics and highly competitive AISC costs of Phase 1 of the Asanko Gold Mine, which we identified when we acquired the Project earlier this year from PMI Gold. With significant cash flow generation, even at current spot gold prices, this Project forms the cornerstone of our strategy to be a growth oriented, low-cost producer. Construction, which started in August 2014, is on schedule and on budget and we are anticipating first gold to be poured in Q1 2016.

Click here to read the full Asanko Gold Inc. (TSX:AKG,NYSEMKT:AKG) press release.