Nov 5, 2024

West African Resources Hits 18m at 6.3 g/t Gold in Grade Control Drilling at Kiaka, Burkina Faso

Introduction:

West African Resources Limited (ASX: WAF) has reported significant results from its maiden grade control drilling program at the Kiaka Gold Project in Burkina Faso, highlighted by an intercept of 18m at 6.3 g/t gold from surface.

Drill Results:

18m @ 6.3 g/t gold from surface (KMGC_2250_0731)
34m @ 2.4 g/t gold from surface (KMGC_2250_0188)
27m @ 3.0 g/t gold from 6m (KMGC_2250_0667)
19m @ 3.9 g/t gold from 13m (KMGC_2250_0156)
28m @ 2.5 g/t gold from 3m (KMGC_2250_0487)
30m @ 2.2 g/t gold from 3m (KMGC_2250_0632)

Project Overview:

The Kiaka Gold Project is located in Burkina Faso, West Africa. The grade control drilling program is targeting the top 20m of mineralization within the Kiaka Main - Stage 1 open-pit design. Drilling has confirmed gold mineralization over 200m wide from surface, supporting the project's low strip ratio of 0.8 to 1 (waste to ore).

Kiaka is part of West African Resources' portfolio, which includes unhedged resources of 12.8 million ounces and Ore Reserves of 6.1 million ounces of gold. The company is on track to produce 4 million ounces over the next decade, with annual production set to peak at 473,000 ounces in 2029.

Program Details:

The grade control drilling program at Kiaka involves 1,828 holes for 55,945 meters completed to date, with this release reporting results from 582 holes. Drilling is being conducted on a 12.5m x 12.5m grid spacing, targeting the top 20m of mineralization. The surface grade control at Kiaka Main - Stage 1 is now 78% complete, with drilling expected to continue into early 2025. Results align well with the current Mineral Resource Estimate, confirming mineralization widths of up to 200m near surface.

Understanding These Results:

The grade control drilling results provide increased confidence in both the geological model and grade estimation within the top 20m of the deposit. This covers the first 12 months of open pit ore production from the Kiaka Main - Stage 1 open pit.

The thick, consistent zones of mineralization and wide intercepts near surface support the project's low strip ratio, which significantly de-risks the early production plan. The results reinforce West African Resources' geological model and support the potential for a robust start to mining operations.

Management Commentary:

Richard Hyde, West African Executive Chairman:

“Maiden RC grade control drilling at Kiaka has returned further thick zones of near-surface gold mineralisation including 18m at 6.3 g/t gold and 34m at 2.4 g/t gold. Results reinforce WAF’s geological model with gold mineralisation in the latest drilling over 200m wide at surface.

“Drilling results continue to support Kiaka’s low strip ratio of 0.8 to 1 (waste to ore) of the Kiaka Main - Stage 1 open-pit which significantly de-risks the early production plan with owner-mining on-track to commence in Q1 2025.

“Delivery of the owner-mining fleet is progressing to plan, with equipment already arriving on site at Kiaka with the remaining fleet expected by the end of 2024. Kiaka construction remains on time and on budget, with first gold production expected in Q3 2025.

“WAF is on track to produce 4 million ounces over the next decade, with annual production set to peak in 2029 at 473,000 ounces of gold. Our unhedged resources now stand at 12.8 million ounces and Ore Reserves at 6.1Moz of gold.”

Next Steps & Catalysts:

Modelling and estimation of the initial grade control model for the Stage 1 pit is underway, with completion anticipated by the end of the year. The company is on track to commence mining at Kiaka in Q1 2025.

Delivery of the owner-mining fleet is progressing to plan, with equipment already arriving on site. The remaining fleet is expected by the end of 2024. Kiaka construction remains on time and on budget, with first gold production expected in Q3 2025.

Commodity Outlook:

Gold continues to be a sought-after commodity, with West African Resources positioned to benefit from its unhedged production profile. The company's strategy to increase production to 473,000 ounces by 2029 aligns with positive long-term gold price forecasts and growing demand for the precious metal.

Conclusion:

The grade control drilling results at Kiaka reinforce the project's potential for a strong start to production. With consistent, wide zones of mineralization from surface and a low strip ratio, Kiaka is shaping up to be a significant contributor to West African Resources' goal of producing 4 million ounces over the next decade. As construction progresses on schedule and budget, investors will be watching closely for further updates leading to first gold production in Q3 2025.

Sources:

WAF Drill Results Announcement

Additional Figures:

Australia

ASX

Gold

Nov 6, 2024