Unhedged gold mining company West African Resources Limited (WAF) has announced its updated 2023 Resources, Reserves and 10-year production outlook for its Sanbrado Gold Operations (Sanbrado) and the Kiaka Project in Burkina Faso.
Highlights
- Exploration success and targeted underground drilling in 2022 delivers robust 10-year production plan
- Mineral Resources increased by 1.0 moz to 12.6 moz gold, net of mining depletion
- Ore Reserves increased by 4.7 moz to 6.4 moz gold, net of mining depletion
- Maiden Mineral Resource for MV3 prospect delivers 257 000 oz gold
- WAF production to average 208,000 oz gold per annum 2023-24, 400,000 oz gold per annum 2025-32
- 2023 unhedged gold production guidance 210 000 – 230 000 oz at AISC of <US$1,175/oz
- 2023 exploration targeting underground potential at M5, areas within trucking distance of Sanbrado
- Q1 2023 gold production 56 307 oz, unhedged gold sales 48 208 oz at US$1,878/oz
- A$173m cash at end of Q4 2022, no senior debt and 100% unhedged gold production
West African Executive Chairman and CEO Richard Hyde commented:
“West African remains on track to achieve its goal to become a +400,000 ounce per annum gold producer with the development of our second gold mine at Kiaka. Our unhedged 10-year production outlook estimates production of more than 200 000 oz gold per annum in 2023 and 2024, and more than 400 000 oz gold per annum from 2025 to 2032.
“Our mine development team delivered drilling success, increasing underground reserves at M1 South by 398 000 oz, replacing all of the underground ore mined since the project commenced in 2020.
Our exploration team delivered a shallow open-pit maiden resource of 257 000 oz gold at MV3, which remains open along strike and at depth, providing further exploration upside, and is located only 6km from the Sanbrado mill.
WAF will continue creating value through the drill bit in 2023, while investigating the potential of developing a second underground mine at Sanbrado beneath the M5 open pit.
Our 31 December 2022 Mineral Resource and Ore Reserve Statement and 10-year production plan shows WAF has a long and sustainable future and will continue making a positive difference to our stakeholders in Burkina Faso over the next decade.”
