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- New miner West African Resources (WAF) has boosted gold production through May is it expands its Sanbrado operation in Burkina Faso
- Production has been steadily increasing since the project’s first gold was poured earlier this year
- All in all, the company has generated over $12.5 million in the three months from March to May, with full commercial production to start this quarter
- Work continues to upgrade and expand operations at Sanbrado, and to explore the recently acquired Toega project
- West African Resources closed 2.8 per cent lower on Tuesday at 87.5 cents per share
New miner West African Resources (WAF) has boosted gold production through May is it expands its Sanbrado operation in Burkina Faso.
Production
Production has been steadily increasing since the project’s first gold was poured earlier this year.
Ore production has increased from around 200,000 tonnes in March to over 250,000 tonnes in May. The gold grade has also increased from 1.3 to 1.4 grams per tonne, while recovery rates have held relatively steady around 91 per cent.
The company is currently processing both oxide open-pit and underground development ore.
All in all the company has generated over $12.5 million in the three months from March to May, with full commercial production to start in the June quarter.
Expenditure and expansion
Work continues to upgrade and expand operations at Sanbrado, and to explore the recently acquired Toega project.
Total resources across the two projects are still being understood, but are currently estimated at over four million ounces. It should be noted only around 1.65 million ounces of that can currently be classed as JORC-compliant reserves, but WAF still has some serious deposits on its hands.
Deep resource definition drilling is continuing at Sanbrado’s M1 South deposit in the hope of expanding the 814,000 ounces of indicated and inferred resources there.
Resource definition and infill drilling is slated to commence at Toega by September, with a view to having the mine up and running within three years. Its proximity to Sanbrado should help extend Sanbrado’s life of mine and processing facility by adding high-grade ore to supplement Sanbrado’s product as the grade diminishes over time.
WAF has spent over $30 million on Sanbrado development and construction from March to May. With current spot prices being elevated and the mining ramping up to commercial production, the 300,000-ounce per year mine should start paying itself off in the very near term.
Next steps
Once production is in full swing, WAF will continue work expanding the known resources at Sanbrado. It will also work towards a JORC-compliant resource for Toega and begin work on scoping and feasibility studies for the project.
With potentially millions of ounces of gold in the ground and a couple of low-cost, high-yield mines under its belt, WAF’s prospects are looking good.
West African Resources closed 2.8 per cent lower on Tuesday at 87.5 cents per share.
