Asanko Gold Inc. (TSX:AKG)(NYSE MKT:AKG) has said it in its outlook for the second half of the year that “With 53,986 ounces of gold already produced in Q3, the company now expects to produce between 106,000 and 111,000oz for H2 2016 which is above the upper end the recently upgraded guidance.”

The Company increased its production guidance for H2 2016 in early September to 100,000 - 105,000 ounces. It is expected that the Asanko Gold Mine will continue to process at above design throughput levels at reserve grade during Q4 2016, with metallurgical recovery continuing to average 94%. As such, production in Q4 2016 is expected to be between 52,000 and 57,000 ounces, the miner said when it announced production results for the third-quarter 2016 (Q3) from Phase 1 of the Asanko Gold Mine, located in Ghana, West Africa.

Q3 financial results are expected to be released on November 7, 2016 and management will host a conference call at 9:00am EST.

Commenting on the quarter’s performance, Peter Breese, President and CEO, said: “The operations had an exceptional quarter with the process plant now running at 300,000 tonnes per month, or about 20% above design. The ore grade from the Nkran pit continued to increase during the quarter with most of the ore now coming from the main mineralized domains within the heart of the deposit.”

“Looking ahead, with the mine delivering ore at 2.0 g/t or more and the mill considerably exceeding design throughput and recovery rates, we expect to beat the upper end of our published production guidance for H2 2016. This strong performance will position us well to finance our Phase 2 expansion project with cash flow from the operations.

“It is also encouraging to note that this strong operating performance has also been completed with the highest health and safety standards within the industry. No Lost Time Injuries were recorded during the quarter and our rolling 12 month Lost Time Injury Frequency Rate remains very low at 0.17.”

Mining

After reaching the main mineralised domains of the Nkran Pit in June, the grade of ore mined increased steadily during Q3 and reached 2.0 g/t in September.

Ore mining rates in July and August averaged 469,000 tonnes per month (tpm) while feed to the process plant was approximately 280,000tpm. The additional tonnes mined were stockpiled ahead of the mill to reduce exposure to a single pit operation. By the end of August, stockpiles had reached target levels and ore mining rates were reduced in September and the mining fleet scaled back. For Q4 2016, it is expected that ore mining rates will be mostly balanced with processing rates and steady stockpile levels maintained.

Asanko’s vision is to become a mid-tier gold mining company that maximises value for all its stakeholders. The company’s flagship project is the multi-million ounce Asanko Gold Mine located in Ghana. The mine is being developed in phases. Phase 1 was built within budget and ahead of schedule, with gold production commencing in January 2016 and commercial production declared on April 1, 2016.


Source:ClassFMonline