AMN - BURKINA FASO: Positive Sanbrado open pit study

The interim open pit feasibility study for West African Resources’ Sanbrado Gold Project in Brukina Faso has confirmed the project as a producer of at least 150,000 ounces annually with rapid capital payback and a low-cost simple CIL process flowsheet.

Highlights: 

• 124% increase in indicated resources at M1 South, driving new project economics;
• 103% increase in probable reserves - now 16.8Mt at 1.7g/t gold for 894,000 ounces;
• Outstanding drill results, post study release from M1 and M5 exceed expectations, confirming high grade mineralisation open at depth and underground potential at both M1 and M5;
• Underground mining study in progress – higher grade underground mineralisation expected to displace low-grade in updated mining schedule resulting in a significant upgrade to project economics, without a material change to processing flowsheet and capital costs;
• High-grade visible gold intercepted in multiple holes at M1, doubling depth of intercepted mineralisation, now more than 400 metres below surface;
• Mining licence received from Government of Burkina Faso;
• Drilling accelerated with 5 rigs on site double shifting and a focus on adding value through the drill bit; and
• $14.5 million cash at bank and $7.5 million ‘in-the-money’ options. The company is well funded for 2017 work programs

The company says the ​M5 drilling results include: 29m at 4.96 g/t gold from 128m, including 9m at 10.6 g/t; 15m at 5.03 g/t from 256m, including 2m at 27.3 g/t Au; 20m at 3.34 g/t from 170m, including 2m at 16.5 g/t; 42m at 3.89 g/t from 176m, including 14m at 5.41 g/t; and 77m at 5.30 g/t from 352m, including 27m at 12.26 g/t.

M1 results confirm that the ultra-high-grade system is still open at depth. They include: 4m at 54.46 g/t from 293m including 0.5m at 150.9 g/t; and 9.5m at 34.03 g/t from 295.5m including 3m at 105.41 g/t.

​Managing director Richard Hyde said, “The 2017 March quarter was transformational for the company with the completion of an interim open-pit feasibility study and deep drilling results exceeding expectations at M1 and M5.

“The interim open-pit feasibility demonstrated Sanbrado as a high margin +150,000oz gold producer over the early years of the project, rapidly paying back capital in 2 years, with excellent metallurgy allowing simple CIL processing.  A number of areas for improvement were highlighted which are being addressed in an underground optimisation study, along with an aggressive drilling program creating further value.

“One hole drilled during the quarter was a game-changer for M5 returning 77m at 5.3 g/t Au from 352m, more than 140m beneath the current $1200 reserve pit shell.  This confirms a second potential high grade underground feed source for the project, and in combination with M1 high grade, is expected to materially upgrade the project mine schedule, without any material changes to the CIL processing flowsheet or associated capital costs.

“Diamond drilling also recommenced at M1 during the March quarter, with five of the first six holes hitting high gold grades and visible gold, doubling the depth of known gold mineralisation. Further high-grade results are expected shortly.

“The team is focused on adding further value through targeted drilling over the coming months, with two additional contract rigs mobilised to site during the quarter.”

www.westafricanresources.com