Gold

West African Resources notes multiple cores hosting gold at Sanbrado project

Tue 31 May 22, 11:40am (AEST)
Drill core samples showing visible gold
Source: Siren Gold

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Key Points

  • West African Resources reports core samples from Sanbrado MV3 drill run including 13m @ 5.3g/t and 11m @ 2.5g/t
  • Company is overseeing ongoing drilling at MV3 northern target on 90% owned project
  • Company finished Q1 CY22 with cash on hand of over $200m

West African Resources (ASX:WAF) has reported extensive mineralisation on-site its Burkina Faso Sanbrado gold project acreage in first pass drilling at the MV3 target located 6km northwest of Sanbrado. 

Among first pass RC drilling intercepts are included 13m @ 5.3 grams of gold per tonne, 14m @ 3g/t, and 11m @ 2.5g/t. 

Extensional drilling further north remains ongoing with the company expecting receipt of assay results in the near future. 

(Source: West African Resources) A map locating the Sanbrado project
(Source: West African Resources) A map locating the Sanbrado project

Sanbrado 2022 drilling campaign ongoing

A total of 68 holes have been drilled to date for a total of 8,330m; today's results cover 35 targets. Drilling at MV3 east, meanwhile, has allowed the company to determine a strike length of 800m; MV3 East bore the result of 11m @ 2.5g/t from 72m depth. 

The 13m intercept at the higher grade of 5.3g/t was intercepted at 110m depth for comparison. 

MV3 East drilling has focused on areas beneath historic artisanal workings between 50m and 120m downhole with ongoing drilling targeting higher grade interceptions prioritised by the company for its next round of drilling.

The company continues as well to develop ongoing exploration plans for the northern end of the MV3 Main target. 

Strong company financials

In its March quarterly, the company noted unhedged gold sales of 57,150oz at an average price of US$1,842/oz and $57m of operating cashflow generated. 

The company ended the first quarter (of the calendar year) with a reported $212m cash on hand. 

West African Resources owns 90% of the Burkina Faso Sanbrado Gold project; production from the site in Q1 CY22 was 65,900oz at an all in sustaining cost (AISC) per ounce of US$932/oz.

West African Resources has outperformed the materials index for the better part of the last three months
West African Resources has outperformed the materials index for the better part of the last three months

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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