Kiaka to take West African Resources’ gold output above 400,000 oz/year from 2025
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PARIS, FRANCE - JANUARY 28: A gold ingot is formed from jewelry purchased by the company 'Gold By Gold', melted at greater than 1000 degrees fahrenheit to be transformed into gold bullion on January 28, 2012 in Paris, France. The company has developed a process for recycling gold which it has purchased in the open market. The price of gold has tripled over the last four years with growth of 30% in 2011 alone, reaching a market price of 50 euros per gramme. The continuing drive upwards of the price of gold has encouraged many into the global marketplace, either because they are looking to capitalise on high prices, because of the impact of rising unemployment or simply because they are caught up in what is seen as a period of 'gold fever'. Concerns have been raised around the legal framework and regulations which frame the gold markets and whether enough support is on offer to those at the forefront of the economic crisis who are encouraged to sell. (Photo by Patrick Aventurier/Getty Images)
WEST African Resources forecast gold production of 233,000 ounces a year from its Kiaka project in Burkina Faso, a prospect it bought from B2Gold last year.
This is following publication of a feasibility study on the project which expects first production in 2025 from an open pit mine using a simple process of a single stage crusher and carbon-in-leach extraction technology.
The project, which can be expanded, has an 18-year life of mine and will assist in taking West African Resources to production of an estimated 415,000 oz/year from 2025 to 2031. Kiaka will be funded from debt and cash generated by West Africa’s only operating asset, the Sanbrado gold mine, also in Burkina Faso.
“We have a $20m 2022 early works budget for Kiaka, with major works expected to start in early 2023 leading to first gold in mid-2025. WAF (West African Resources) is in an exciting growth phase, as we aim to a be a multi-project +400,000 oz/year gold producer by 2025,” said Richard Hyde, executive chairman.
Pre-production capital has been put at $430m with a two-and-a-half year pre-tax pay back, the company said. It will average all-in sustaining costs of $953/oz for the first five years and $1,052/oz over the life of mine, generating $2.4bn in pre-tax cash flow.
“Kiaka’s development fits with WAF’s strategy of building conventional gold projects with simple metallurgy in known mining jurisdictions,” said Hyde.
Shares in the company were just over 4% higher in Sydney today taking West Africa’s valuation 23% higher over the past 12 months and 10% higher year-to-date.
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