Asante Gold announces exclusivity agreement with Kinross for Chirano mine in Ghana

Canada’s Asante Gold could be set to bolster its Ghanaian portfolio with the Chirano Gold Mine, after entering into an exclusivity agreement with Kinross Gold Corp for potential ownership of the asset.

Chirano is an open pit and underground mining operation located in Southwestern Ghana, immediately South of Asante’s Bibiani Gold Mine. The asset was discovered in 1996 and began producing gold in 2005.

Asante aims to pour first gold at its own Bibiani mine in Q3 this year, after purchasing it from Resolute Mining in August last year. The company, listed on exchanges in Canada and Germany, has spent the last nine months refurbishing the past producing mine, which currently boasts a 2.5 million ounces gold JORC resource.

The Chirano operation also encompasses a working mill with a capacity of approximately 3.5 million tonnes per year. Kinross has also been successful in extending Chirano’s mine life through exploration. In 2020, the gold major added 660,000 ounces to the mineral reserve and another 400,000 ounces last year. Chirano’s current mine life extends to 2026.

Should the mine’s majority ownership be eventually transferred from Kinross to Asante, the Ghanaian Government will retain its 10% minority stake in the project.