WEST African Resources said on Tuesday it had identified 560,000 ounces of economic gold that could be mined from the underground expansion of its Sanbrado operation in Burkina Faso.
The underground extension, which is of the Toega open pit at the Sanbrado complex, will deliver an estimated 81,000 oz a year in output from years two to seven of its forecast economic life. As this production will displace low grade production from the open pit, the net production increase is 50,000 oz/year, the company said.
This is in terms of scoping study recently completed by West African which said the capital cost of the extension would be about $42m.
“The resource remains open at depth and is currently only constrained by the depth of drilling,” said Richard Hyde, executive chairman of West African Resources.
The Australian firm was also investigating a secondary crushing unit at Sanbrado which would improve recoveries from the hard rock that is mined at the site. Results of this study are expected to be included in West African’s next 10-year production plan update planned for release in the second quarter of this year, it said.
“West African’s projects are long-life with Sanbrado +10 years and Kiaka (also in Burkina Faso) 20 years,” said Hyde.
“We are actively looking at opportunities to reduce costs and increase gold production through targeted drilling and capital works programs, including connecting to grid power and secondary crushing at our projects as we aim to be a sustainable 500,000 oz/year gold producer within five years,” he said.
