PRECIOUS METALS

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.

Michael Quinn
 Sanbrado's high grades point to superb margins

Sanbrado's high grades point to superb margins

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.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.