EXPLORATION & DEVELOPMENT

West African flies on bonanza hit

Shares in West African Resources get a boost after drilling in Burkina Faso returned 4m at 109gpt

Kristie Batten
West African flies on bonanza hit

The hit, from the M1 prospect at Tanlouka, returned 31m at 17gpt gold from 60m, including 4m at 109gpt gold, ending in mineralisation.

In a second high-grade zone, drilling hit 12m at 10.7gpt gold from 80m, including 4m at 22.6gpt gold; and 24m at 7.4gpt gold from 44m, including 8m at 17gpt gold.

Mineralisation remains open in all directions.

“These high-grade results are spectacular and will add significant value to the project,” West African chairman Mark Connelly said.

M1 is a recently discovered prospect at Tanlouka, and is not yet included in the project’s resource inventory.

The project has current indicated and inferred resources of around 2 million ounces of gold, as well as a probable ore reserve of 11.2 million tonnes at 1.22gpt gold for 440,000oz gold.

A 2015 prefeasibility study on a heap leach starter pit envisaged a seven-year operation producing an average of 49,000oz per annum at all-in cash costs of $US749 an ounce.

The company plans to update the resource in the June quarter and said an upgrade would have a favourable impact on project economics.

Drilling will continue in the meantime.

West African had $A2.6 million at the end of 2015 after raising $2.04 million in December, but raised a further $303,500 last month through a share purchase plan.

Shares in West African were up 26% to 7.2c after hitting an intraday high of 7.9c this morning.

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