West African de-risking early gold production
Tue Nov 05 2024
Gold producer West African Resources (ASX:WAF) has uncovered thick, near-surface mineralisation during pre-production grade control drilling at its Kiaka Project in Burkina Faso. The maiden program returned hits including 18m @ 6.3 grams per tonne (g/t) gold, 34m @ 2.4g/t, 27m @ 3g/t, 19m @ 3.9g/t, 28m @ 2.5g/t, and 30m @ 2.2g/t.
A total of 1,828 holes for 55,945m have been drilled so far, with results released for 582 of those holes. Chairman Richard Hyde says the results reinforce the company’s geological model with gold mineralisation in the latest drilling over 200m wide at surface.
“Drilling results continue to support Kiaka’s low strip ratio of 0.8 to 1 (waste to ore) of the Kiaka Main – stage one open-pit which significantly de-risks the early production plan with owner-mining on-track to commence in Q1 2025,” he says. The drilling program aimed to improve the confidence level in both the geological model and grade estimation within the top 20m of the deposit, which covers the first 12 months of open pit ore production from the Kiaka Main – stage one open pit.
Hyde says Kiaka construction remains on time and on budget, with first gold production expected in Q3 2025. “Delivery of the owner-mining fleet is progressing to plan, with equipment already arriving on site at Kiaka with the remaining fleet expected by the end of 2024,” he says.
“WAF is on track to produce 4 million ounces over the next decade, with annual production set to peak in 2029 at 473,000 ounces of gold. “Our unhedged resources now stand at 12.8 million ounces and ore reserves at 6.1 million ounces of gold.”
Two reverse circulation rigs are currently operating at Kiaka, with drilling expected to continue into early 2025. Overall, the surface grade control program at Kiaka Main – stage one is now 78% complete. Drilling has begun at the Kiaka Main – stages two and three, prior to the completion of stage one, where the remaining holes are inaccessible due to wet ground conditions.
Stage one drilling is on track to be completed before the end of the year. West African, which has a market capitalisation of $2.06 billion, is unhedged and heading towards production at a time of record gold prices.
The price is currently trading over US$2,730 ($4,142) an ounce with expectations there is more room for it to run. UBS sees gold hitting US$2,800 by the end of this year with potential for the safehaven metal to reach US$3,000 next year.
Source: https://mining.com.au/