Gold developer West African Resources Limited (ASX, TSXV: WAF) is pleased to report high-grade Diamond drilling results from the M1 deposit, at its 100%-owned Sanbrado Gold Project, Burkina Faso.
Highlights
- High-grade results from depth at M1 South;
� 3m at 105.41 g/t Au from 296.5m
� 4m at 54.46 g/t Au from 293m
- Diamond drilling at M1 intercepts visible gold at 460m down hole, which is more than double the depth of the current reserve
- Optimised feasibility study including open-pit and underground mining on track for Q3 2017
- Two contractor rigs currently drilling at M1 South, one WAF rig double shifting at M5
- Two additional contractor rigs expected on site this week
- Well-funded to complete all work programs
Managing Director Richard Hyde commented:
�Diamond drill holes TAN17-DD104 and TAN17-DD107 have returned high grade gold results of 4m at 54.46 g/t Au from 293m, and 3m at 105..41 g/t Au from 296.5m, respectively. These are the first results from the new drilling program at M1 South for 2017.
�Results show good continuity of high grade gold mineralisation and confirm visible gold reported in logging in March. Further significant zones of visible gold have now been intercepted at 460m down hole, more than double the depth of the current reserve, confirming M1 as a fertile very high-grade gold system which remains open at depth."
Hartleys Research Report
Prior to this announcement, Hartleys released updated research on West African Resources with an upgraded price target of $0.45/share, representing an upside of 57% on the current share price.
Analyst Mike Millikan wrote:
"Sanbrado is a high-quality project, with a growing mining inventory, simple processing flowsheet (free-milling ores), and increasing production profile and mine life. The project has substantial appeal, being 100%-owned, and well advanced (FS being optimised and fully permitted) for near-term construction, targeted to commence late CY17.
We maintain our Speculative Buy recommendation with an updated price target of 45cps, NAV of 41cps, spot NAV of 44cps. WAF remains well funded (~A$16.5m in cash and options (in the money) expiring end September 2017 for ~A$5.7m) to complete the study work and for ongoing drilling."
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