All dollar amounts are United States dollars unless otherwise stated)

VANCOUVER, British Columbia, Oct. 17, 2019 (GLOBE NEWSWIRE) -- Asanko Gold Inc. (“Asanko” or the “Company”) (TSX, NYSE American: AKG) is pleased to announce production results for the third quarter (“Q3”) 2019 from the Asanko Gold Mine (“AGM”), located in Ghana, West Africa. The AGM is a 50:50 joint venture (“JV”) with Gold Fields Ltd (JSE, NYSE: GFI) which is managed and operated by Asanko.

AGM Q3 Highlights (100% basis):
•Record proceeds of $91.0 million generated from gold sales of 63,009 ounces at an average realized price of $1,443 per ounce
•Record gold production of 62,440 ounces, on track to meet 2019 production guidance of 225,000 - 245,000 ounces
•Mined 1.11 million tonnes (“Mt”) of ore, including 0.62Mt of ore from the Esaase pit
•Processed record 1.44Mt of ore with an average gold grade of 1.4 grams per tonne (“g/t”)
•Continued strong safety performance with no lost time or recordable injuries during the quarter

“The Asanko Gold Mine continued to deliver strong operational performance during the quarter with record quarterly production and revenue,” said Greg McCunn, Chief Executive Officer. “During the third quarter we substantially completed the Cut 2 pushback at the Nkran pit concluding a significant capital program that allows the mine to focus on generating meaningful free cash flow. Increased free cash flow will continue to strengthen the balance sheet at both the corporate and Joint Venture level. At the corporate level, during the third quarter we received $10 million from our JV partner pursuant to the Joint Venture Transaction and we expect to receive a further $10 million on or before December 31, 2019, significantly bolstering our corporate balance sheet.”

Health and Safety
There were no lost time injuries (“LTI”) reported during the quarter. As at September 30, 2019, the mine achieved over 30 months without an LTI. The were also no recordable injuries during the quarter.

Production
In Q3, the AGM sourced ore from the Nkran, Esaase and Dynamite Hill pits as well as ore stockpiles. At Nkran, waste mining operations substantially concluded the final stage of the western portion of the Cut 2 pushback. During the quarter, 4.71Mt of waste and 0.32Mt of ore at an average gold grade of 1.8 g/t were mined from the Nkran pit. The Esaase pit delivered 0.62Mt of ore at an average gold grade of 1.3g/t with 1.53Mt of waste mined. Dynamite Hill delivered 0.17Mt of ore at a gold grade of 0.8 g/t with 0.13Mt of waste mined.

The processing plant milled 1.44Mt at a gold grade of 1.4 g/t during the quarter with metallurgical recovery averaging 94%.

Preliminary Costs
Preliminary operating cost estimates for the AGM during the quarter are provided with final operating costs to be released in conjunction with the Q3 2019 Interim Financial Statements and Management Discussion & Analysis on or about November 7, 2019. Preliminary operating cash costs per ounce1 were $799, preliminary total cash costs per ounce1 were $872, and preliminary all-in sustaining costs per gold ounce1 (or “AISC”) were $1,179 in Q3 2019. Although Q3 2019 AISC were higher than the 2019 annual cost guidance of $1,040 - $1,060/oz, management forecasts a reduction in AISC in Q4 2019 as waste mining on Cut 2 at Nkran was nearing completion during the quarter. During Q3, capitalized stripping costs associated with Cut 2 at Nkran amounted to $162/oz. In early Q4, capitalized stripping is expected to be complete, resulting in substantially lower AISC.

AGM Key Production Statistics (100% basis) Units Q3 2019 Q2 2019 Q1 2019 Q4 2018
Total Tonnes Mined 000 t 7,477 8,864 8,088 9,740
Waste Tonnes Mined 000 t 6,372 7,808 6,584 8,370
Ore Tonnes Mined 000 t 1,105 1,056 1,505 1,370
Strip Ratio W:O 5.8:1 7.4:1 4.4:1 6.1:1
Average Gold Grade Mined g/t 1.5 1.6 1.4 1.5
Ore Treated 000 t 1,439 1,375 1,224 1,238
Gold Feed Grade g/t 1.4 1.5 1.6 1.6
Gold Recovery % 94 93 93 95
Gold Produced oz 62,440 62,067 60,425 59,823


Sales and Liquidity
Gold production for the quarter totalled 62,440 ounces with gold sales of 63,009 ounces at an average realized price of US$1,443 per ounce, generating record gold sales proceeds of $91.0 million for the JV. At the end of the quarter, the JV held approximately $36.6 million in unaudited cash ($3.0 million of which was restricted in favour of a gold hedging counterparty), $7.0 million in gold receivables and $2.9 million in dore (with a market value of $3.1 million)

The Company held $13.6 million in unaudited cash at the quarter end, and is scheduled to receive a further $10 million in cash related to the JV transaction on or before December 31, 2019.

The JV received notification from Rand Merchant Bank confirming the satisfaction of various conditions precedent associated with a $30 million revolving credit facility for the JV, which is now available to draw. The Company and JV have no drawn debt.

Qualified Person Statement
Frederik Fourie, Asanko Senior Mining Engineer (Pr.Eng) is the Asanko Qualified Person, as defined by Canadian National Instrument 43-101 (Standards of Mineral Disclosure), who has approved the preparation of the technical contents of this news release.

Notes:
1 Non-GAAP Performance Measures
The Company has included certain non-GAAP performance measures in this press release. These non-GAAP performance measures do not have any standardized meaning. Accordingly, these performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. For a description of the methodology used to calculate these non-GAAP performance measures, see the Non-GAAP Measures section of Asanko’s previously filed Q2 Management Discussion and Analysis; reconciliations of these measures to the Company’s financial results will be reported in accordance with IFRS in the Q3 MD&A to be filed in the coming weeks.
• Operating Cash Costs per ounce and Total Cash Costs per ounce
Operating cash costs are reflective of the cost of production, adjusted for share-based payments and by-product revenue per ounce of gold sold. Total cash costs include production royalties of 5%.

• All-in Sustaining Costs Per Gold Ounce
The Company has adopted the reporting of AISC as per the World Gold Council’s guidance. AISC include total cash costs, corporate overhead expenses, sustaining capital expenditure, capitalized stripping costs and reclamation cost accretion per ounce of gold sold.
• All-in Costs Per Gold Ounce
The Company has adopted the reporting of AIC as per the World Gold Council’s guidance. AIC include AISC plus non-sustaining capital and exploration expenditures per ounce of gold sold.