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- With ramp-up activities continuing, West African Resources (WAF) has achieved a record quarter of production at its Sanbrado Gold Operation
- The company produced 50,299 ounces of gold, representing a 10 per cent increase compared to the quarter before
- All-in sustaining costs (AISC) per ounce also decreased from US$1009 (roughly A$1300) to US$992 (approximately A$1279) while the price of gold sales averaged US$1923 (about A$2479) per ounce
- Most significantly, underground mined ounces increased 184 per cent with stopes being mined at M1 South
- West African Resources is down 6.15 per cent to $0.92 per share
With ramp-up activities continuing, West African Resources (WAF) has achieved a record quarter of production at its Sanbrado Gold Operation.
Located in Burkina Faso, Sanbrado — which is owned 90 per cent by West African Resources — processed its first ore on March 10 last year and poured its first gold on March 19.
For the three months ending December 31, the company produced 50,299 ounces of gold, representing a 10 per cent increase compared to 45,719 ounces produced in the quarter before, and a significant increase compared to 32,626 ounces in the quarter before that.
Gold sales totalled 51,688 ounces, compared to 44,184 ounces in the prior period, representing a 17 per cent increase, with all-in sustaining costs (AISC) per ounce falling from US$1009 (roughly A$1300) to US$992 (around A$1279), while the price of gold sales averaged US$1923 (about A$2479) per ounce.
The decline in AISC per ounce was largely due to the increase in production, but was partially offset by an increase in general all-in sustaining costs, which grew 12 per cent from $62 million to $70 million.
Significantly, underground mined ounces increased 184 per cent with, stopes being mined at M1 South, where deep drilling has extended the depth of known mineralisation to more than 900 metres.
Major results from this exploration work include 16.1 grams per tonne of gold over 6.5 metres and 20.6 grams per tonne over six metres, which Richard Hyde, Chairman and CEO of West African Resources, said confirms “the strong vertical continuity of the M1 South deposit.”
“Reporting of resources, reserves, and the updated life of mine production profile for Sanbrado is on-track to be released in Q1 2021,” he added.
At the end of 2020, the company had a healthy balance sheet with roughly $95 million in cash on hand.
West African Resources is down 6.15 per cent to $0.92 per share at 11:41 am AEDT.
