West African Resources Limited (ASX: WAF) is pleased to report activities on its gold projects in Burkina Faso, West Africa, for the quarter ending 30 June 2018.
Highlights
Sanbrado Gold Project
- Updated Feasibility Study confirms Sanbrado as a +200,000ozpa gold producer
- Updated Mineral Resource Estimate included 2.35Moz gold in Indicated Resources and 0.55Moz gold in Inferred Resources
- Probable Ore Reserve of 20.4Mt at 2.4g/t Au for 1,574,000 ounces of gold
- Average annual production of 211,000 ounces gold over first 5 years of mine life
- 76% increase in Probable Reserves to 1.6 million ounces (20.4Mt at 2.4g/t gold)
- 16-month post-tax pay back on US$185 million pre-production capital costs
- All-In Sustaining Costs (AISC) of US$551/oz over first 5 years and US$640 life of mine
- Pre-tax NPV5% of US$567m (A$754m) and pre-tax IRR 62%
- Post-tax NPV5% of US$405m (A$540m) and post-tax IRR 49%
- Sanbrado is fully permitted, with mining permit and environmental certificate granted
- Discussions with project lenders are in progress, and debt package is expected by end Q4 2018
- Early construction works are underway and gold production is expected by 2020.
M1 South
- Infill drilling at M1 South continued to confirm the continuity of high-grade mineralisation. Results at depth included (southeast to northwest):
- TAN18-DD196: 8m at 7.0 g/t from 693 including 1.5m at 21.6 g/t Au and 1m at 9.2 g/t Au 705.5m
- TAN18-DD189: 11m at 11.2 g/t from 654 including 1m at 39.8 g/t Au and 6m at 24.4 g/t Au from 675m including 0.5m at 240 g/t Au
- TAN18-DD214A: 0.5m at 520 g/t Au from 578m and 23m at 7.3 g/t Au from 617m including 3.5m at 20.2 g/t Au, 4m at 24.4 g/t Au and 1.5m at 21.5 g/t Au
- TAN18-DD217A: 6.5m at 6.8 g/t Au from 603.5m including 0.5m at 35.7 g/t Au.
M5 Deposit
- Drilling targeted higher grade mineralisation in the southern portion of M5, with results of:
- TAN18-DD202A: 18m at 4.82g/t Au from 266m and 7m at 3.01g/t Au from 295m
- TAN18-RC429A: 12m at 3.09 g/t Au from 4m
- TAN18-DD198: 3m at 7.56 g/t Au from 225m
- TAN18-DD199: 6m at 3.46 g/t Au from 426m
- TAN18-DD200: 14m at 3.11 g/t Au from 232m
- TAN18-DD201A: 31m at 2.39 g/t Au from 246m
- TAN18-DD202A: 18m at 4.82 g/t Au from 266m
- TAN18-DD202A: 7m at 3.01 g/t Au from 295m
- TAN18-DD203: 4m at 12.34 g/t Au from 238m
- TAN18-DD207: 13m at 2.61 g/t Au from 454m.
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