(Update: On March 1, 2013, Keegan Resources Inc began trading as Asanko Gold Inc TSX:AKG.)
Keegan Resources Inc TSX:KGN announced results of a prefeasibility study of its Esaase Gold Project in Ghana. Based on a gold price of $1,150 per ounce, the report projects an open-pit mine with a CAPEX of US$506 million, an after-tax NPV (discounted at 5%) of $639 million and an IRR of 32%. The study also estimates gold production of 2.6 million ounces over a 10.2-year mine life, with 330,000 ounces produced in the first year and a life-of-mine average of 258,000 ounces per year. Plant capacity is estimated at 7.5 million tonnes a year.
Keegan also released an updated resource estimate of 98.7 million tonnes grading 1.1 g/t for 3.64 million ounces measured and indicated and 45.9 million tonnes grading 1.1 g/t for 1.55 million ounces inferred. The estimate uses a 0.4 g/t cutoff.
A portion of the measured and indicated resource was converted to proven and probable mineral reserves of 79.4 million tonnes grading 1.1 g/t for 2.88 million ounces.
President/CEO Maurice Tagami commented, “With our current cash reserve of $220 million, we feel confident that we can rapidly advance the project to production.”
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