AMN - BURKINA FASO: Favourable review for Tanlouka

Gold developer West African Resources has received a favourable opinion by the Ministry of Environment, Green Economy and Climate Change for the Resettlement Action Plan (RAP) and the Environmental and Social Impact Assessment (ESIA) with respect to the mining permit application for its 100%-owned Tanlouka gold project in Burkina Faso.

This is the penultimate part of the permitting process for the Tanlouka project. The final decision to grant the mining permit, made by the Council of Ministers and decreed by the Cabinet of the Government of Burkina Faso, is expected before the end of the year.

Managing Director Richard Hyde says: “We have completed the final step of the permitting process for the Tanlouka gold project. The process has been relatively smooth since submitting our application in October, 2015, and is a credit to our in-country team and consultants. We expect to receive the mining permit for the project before the end of the year."

At the beginning of the month, West African Resources announced results of maiden mineral resource estimates for M1 and M3 prospect, and an updated mineral resource estimate for the M5 deposit at its 100%-owned Tanlouka gold project, Burkina Faso. Mineral Resource estimates for the Tanlouka project were completed by independent resource consultant International Resource Solutions Pty Ltd (IRS) and was prepared in accordance with the requirements the 2012 JORC Code and disclosed in accordance with NI 43-101, under which the 2012 JORC Code is acceptable for mineral resource calculation and disclosure.

Highlights

-          Project mineral resources now 9.8 million tonnes at 2.1 grams/tonne gold and a further 10.7 million tonnes at 2.0 grams/tonne gold (Inferred)

-          34% increase in Indicated mineral resources for Tanlouka

-          Maiden M1 South Indicated mineral resource of 290,000 tonnes at 10.3 grams/tonne gold and Inferred mineral resource of 410,000 tonnes at 6.4 grams/tonne gold

-          M1 South structure averages 1,600 oz per vertical metre 30 metres to 130 metres below surface and remains open along strike and down plunge

-          The company will report a further resource update at M1 South in Q4 following a 10,000 metres diamond drilling campaign to test mineralisation down to 300 vertical metres

Richard Hyde says: “We are pleased to deliver a maiden resource for M1 South in such a short period of time. This discovery should significantly impact on the potential economics of the project. M1 South mineralisation is open down plunge and along strike. The bulk of the current M1 south resource sits between 30 and 130 metres below surface, where contained gold averages 1,600 oz per vertical metre. To date M1 South has only been drilled to an average vertical depth of 120 metres.

“The company’s focus at has strongly shifted to M1 South since the discovery of high grade gold shoots in March 2016. We are stepping up the drilling campaign with additional diamond rigs focussed on adding to the resource inventory and upgrading inferred resources. This is principally focussed on M1 South but also the M5, M1 North and M3 deposits. We will provide a further resource update for the Tanlouka Gold Project this quarter. The company aims to have a completed feasibility study and granted mining permit for the project by the end of 2016."

In August West African Resources announced that a placement had raised Au$21 million from existing shareholders and leading institutional investors. The funds raised will ensure West African Resources can continue to rapidly progress Tanlouka and fully repay its debt facility with Macquarie Bank ahead of maturity date. The placement will also be applied to fund further resource and exploration drilling, and the completion of the Definitive Feasibility Study, which is on track for completion this quarter. Post completion of the placement West African Resources will have A$30 million cash at the bank.

www.westafricanresources.com

News courtesy of International Mining