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.