Burkina Faso – ASX-listed gold developer West African Resources has received high-grade results of up to 13g/t of gold from auger drilling from a new zone at its Tanlouka gold project in Burkina Faso.

Highlights

  • New gold zone discovered 2 km from proposed low-cost oxide starter project
  • High grade auger results up to 13g/t of gold
  • Follow up RC drilling imminent

“Auger drilling has discovered a new zone less than 2 km northwest from the proposed oxide starter pit. High-grade auger results of up to 13g/t of gold were returned, within an anomalous trend over 1.3 km. The new zone, named M3, trends parallel to the M1 prospect. Follow-up RC drilling is planned to commence shortly.

“Infill auger drilling at the M2 prospect has also returned high-grade auger results of up to 5g/t of gold within a 1km east-west trend. Follow-up RC drilling is underway.

“Both of these areas are located close to the proposed starter pit, therefore any significant results from follow-up drilling has the potential to upgrade the economics of the oxide heap leach starter project,” says West African Resources MD Richard Hyde.

Auger drilling at the Tanlouka gold project has delivered high-grade results 2 km northwest of the M5 Mineral Resource and proposed oxide starter pit. Significant high-grade auger assays, with a peak result of 12 772 ppb of gold, or 12.77 g/t of gold, were returned from a new zone 500 m west of and parallel to the M1 prospect. Results occur over a 1.3 km mineralised trend. Follow-up RC drilling is imminent.

Infill auger drilling was also completed over the historic M2 prospect. M2 is located 800 m west of the southern end of the proposed starter pit. Recent mapping by WAF geologists indicate that mineralisation occurs over a 1 km east-west arcuate zone within weathered diorite, coincident with historic artisanal workings. A peak of 5 280 ppb of gold, or 5.28g/t of gold, was returned. Follow-up RC drilling is in progress.

Finally, auger drilling on the M1 trend was extended to the south to cover potential north-northwest structures intersecting the north-northeast M5 trend in the southern pit area. A peak result of 1 681 ppb of gold, or 1.68g/t of gold, was returned adjacent to the proposed pit, along with a number of +50 ppb samples.

The heavy rains have been hampering West African Resources current drilling programs on the project, however the company intends to complete first-pass drilling over the new areas before halting work. Follow-up drilling around the M1-M5 intersection is planned for October, following the wet season.

The company is fully funded by Macquarie Bank to complete a feasibility study for a heap leach starter project by the third quarter of this year, which will incorporate any positive results from ongoing exploration programs. Follow-up RC drilling is in progress and results will be reported as they are received by the company.

2015 PFS Highlights

West African Resources completed an updated prefeasibility study report for an oxide heap leach starter project on its Mankarga 5 gold project in Burkina Faso in May 2015. It was prepared in accordance with the requirements of both the Australian 2012 JORC Code and Canadian NI 43-101.

The base case assumes a 100%-owned project at a gold price of $1,300/oz and suggests:

  • Production of 69 000 ozpa for first three years, 49 000 ozpa for the seven year life of mine
  • Cash costs $428/oz for three years, $635/oz life of mine
  • All-in cash costs of $538/oz for three years, $749/oz life of mine
  • Pre-tax IRR of 63% with 14-month payback, post-tax IRR of 50% with 16-month payback
  • Pre-tax cash flow of $146 million, post-tax cash flow of $118 million after initial and sustaining capital costs
  • Pre-tax NPV5% of $117 million, Post-tax NPV5% of $86 million
  • Probable Ore reserve of 440 000 oz, life of mine strip ratio 2:1
  • Potential to upgrade in-pit inferred resources currently treated as waste in mining schedule
  • Nearby drill ready oxide targets with potential to add to the base case

Top Project stories in Burkina Faso:

Roxgold receives Mining Convention for Yaramoko

True Gold draws $14M of financing to further Karma mine in Burkina Faso

Gryphon Minerals significantly enhances Banfora gold project economics