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Drill results de-risking Sanbrado gold project

West African Resources has recorded strong infill results from drilling the planned M5 openpit at the high-grade Sanbrado gold project in Burkina Faso.
Drill results de-risking Sanbrado gold project Drill results de-risking Sanbrado gold project Drill results de-risking Sanbrado gold project Drill results de-risking Sanbrado gold project Drill results de-risking Sanbrado gold project

Sanbrado's high grades point to superb margins

Michael Quinn

Hits included 29m grading 13.2 grams per tonne gold, 28m at 6.2gpt gold and 25m at 6.2gpt gold, with the company saying the drilling was confirming soft, high grade oxide ore starting at surface would feed the mill in the project's early operations.

"These exceptional results have significantly de-risked the start-up at Sanbrado," West African said.

West African also confirmed the fully funded project was on track for first production in the third quarter next year.

Sanbrado will have average annual production over the first five years of mine life of 217,000 ounces gold and a 14-month post-tax pay back on US$186 million pre-production capital costs.

Gold produced at Sanbrado will have all-in-sustaining-costs of less than $650/oz during the first five years, including less than $500/oz in the first year when it's expected over 300,000 ounces will be produced.

At the current gold price this points to a margin of more than A$1,400oz.

Shares in West African closed up 16% at A32.5c Thursday, capitalising the company at $282 million.