West African Resources Discovers Gold Outside Of Ore Reserve in Burkina Faso

West African Resources Ltd (ASX: WAF) has intercepted 9.5 metres at 81.91 g/t gold from the Northern Shoot within the Sanbrado Gold Operations from underground drilling.

Other notable high grade intersections included:

  • 8.5 metres at 41.4 g/t gold from 8 metres; and
  • 2 metres at 133.1 g/t gold from 18 metres.

Results confirm potential for an additional mining area at M1 South underground, which could be fast-tracked into the 2024 mine plan.

Drilling covered a total of 126 holes for 19,848 metres.

The northern shoot demonstrates the potential to become an additional mining area at M1S underground using existing infrastructure.

The profitable, cash flow generating unhedged gold producer West African Resources is targeting over 400,000 ounces by 2025.

Richard Hyde, executive chairman, commented:

“Significant opportunity also exists to extend mineralisation below the 1780mRL (520 metres below surface).

“An additional drill drive will provide a position to test the down dip extension of the northern shoot mineralisation in early 2025.”

Cashflow generation

West African Resources is on track to produce 4 million ounces over the next decade, which is set to peak in 2029 at 473,000 ounces.

The company’s unhedged gold resources are 12.8 million ounces with ore reserves of 6.1 million ounces.

In 2023, West African Resources produced 226,823 ounces at US$1,136 all-in-sustaining costs.

During the period gold sales were 224,970 ounces at an average price of US$1,944 per ounce, delivering cash flow from operating activities of A$208.6 million.

Profit after tax was A$164.8 million with A$135 million in cash and A$10 million in unsold gold bullion at the end of 2023.

During 2024 the gold price has continued to rally and sits near record highs at US$2,167 an ounce.

Gold production guidance for 2024 is 190,000 to 210,000 gold ounces at less than US$1,300 all-in-sustaining costs.



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