AMN - BURKINA FASO: Updated mining permit for Sanbrado

The Council of Ministers of the Government of Burkina Faso has approved changes to the original mining permit for West African Resources' Sanbrado Gold Project. The updated mining permit encompasses revised mining and ore processing methods detailed in the latest feasibility study.

It approves changes to include underground mining in addition to open pit mining, and approves using the carbon in leach (CIL) processing method.

Receipt of the updated mining permit completes another key milestone for the company and follows the government’s environmental approval for the Sanbrado project in April 2018.

Managing director Richard Hyde said: “We have now completed the major permitting milestones for the Sanbrado Gold Project. We thank the government of Burkina Faso and local stakeholders for their continued support."

The company is continuing project finance discussions and has received strong interest from several groups including banks, debt funds and royalty companies.

It expects to review detailed proposals from interested parties during the current quarter and appoint a syndicate to fund the majority of the capital required to build the project by the end of 2018.

While this process is being carried out, the company continues to enhance the Sanbrado project through drilling at M1 South and M5 and aims to release an updated resource for M1 South and a scoping study investigating the underground potential of M5 by the end of this quarter.

Early construction works have started at the project with the excavation of a water storage pit, located within the stage 2 part of the M5 open pit, nearing completion.

The water storage pit will capture surface run-off water during the current wet season and will hold about 150,000 cubic metres of water for use during project construction.

Earthworks and services design for the initial construction camp is underway. The company has purchased several converted sea containers that will provide accommodation and messing for up to 60 people during construction start-up.

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