AMN - BURKINA FASO: Sanbrado will start with high grades

The maiden grade control reverse circulation (RC) drilling program at the M1 South deposit of West African Resources Sanbrado Gold Project in Burkina Faso has returned high-grade results. Holes to date at M1 South have targeted early production ore from near-surface mineralisation within the M1 South open pit.

Significant results are: 27 metres at 8.7 g/t from 30 metres, including 7 metres at 16.2 g/t; 21 metres at 9.2 g/t from 14 metres, including 6 metres at 25.4 g/t and ending in mineralisation; 37 metres at 2.4 g/t from 3 metres, including 5 metres at 8.5 g/t; 24 metres at 3.0 g/t from surface; and 17 metres at 3.3 g/t from 12 metres, including 6 metres at 5.8 g/t.

The drilling at M1 South is continuing while the first pass grade control at M5 has been completed.

Construction activities at the project are 45% and remain on budget and schedule with the start of open pit mining due in the first quarter of 2020 and first gold pour on track for the third quarter of 2020.

The M1 South open pit will be mined out in the first two years of production at

Sanbrado and contains more than 150,000 ounces of gold at 5.5 g/t.

Drilling results to date correlate well with the April 2019 M1 South resource model which was depleted to take into account historic artisanal mining.

Managing director Richard Hyde said: “Initial drill holes from the maiden grade control program at M1 South have returned high-grade results, confirming Sanbrado will process high-grade free-milling ore early in the production schedule.

“Drilling continues and will de-risk the first five months of production from the high-grade M1 South open-pit.”

“We are fully funded, with construction progressing on time and budget. Commercial gold production is on track for the second half of 2020.”

West African Resources announced the results of its updated feasibility study for the Sanbrado project in May 2019. The study envisages an initial 10-year mine life, including 6.5 years of underground mining, with probable reserves to 1.7 million ounces (21.6 million tonnes at 2.4 g/t).

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

Project economics are robust, with AISC of more than US$600/ounce over the first five years and US$650 over life of mine. Year 1 production is anticipated to be over 300,000 ounces of gold from underground and open pit ores, at All-In Sustaining Costs of less than US$500/ounce.

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