West African Resources (ASX/TSX: WAF) is pleased to provide investors with the following updated report from Hartleys post resource upgrade.
Hartleys analyst Mike Millikan maintained his Spec Buy and price target of $0.70/share.
"West African Resources (WAF) has reported an impressive 151% increase in total ounces at the M1 South deposit, while increasing resource confidence at both the M1 South and M5 deposits. The latest Sanbrado resource estimate (total) is 51.3Mt grading 1.7g/t Au for 2.7Moz, is up from 48.1Mt grading 1.4g/t Au for 2.2Moz, an increase of ~26%, with over 2Moz now Indicated (up 56% in contained ounces while grade has improved 21%).
"The resource update is considered interim, with further growth anticipated as the key deposits (M1 and M5) remain open, and infill and extensional drilling is ongoing. Another resource update is expected in Q1 CY18, which will include new reserves for use in the updated FS due in Q2 CY18.
"Sanbrado is a quality gold development, with a growing high-grade mining inventory, conventional CIL processing flowsheet, and an anticipated higher production and lower cost profile and increasing mine life. The project also has a granted mining licence and environmental approvals, which could see first gold production (once funded) by mid-2020.
"We maintain our Speculative Buy recommendation with our latest price target of 70 cps, NAV of 64cps, spot NAV of 72cps. The Company remains well funded (~A$26M in cash) to accelerate drilling (ramping up to six drill rigs on site in early November) and to complete development studies."
Click here for the full Hartleys report