🕐23.02.15 - 00:54 Uhr

WEST AFRICAN RESOURCES DELIVERS OUTSTANDING PRE-FEASIBILITY STUDY



West African Resources Delivers Outstanding Pre-Feasibility Study Mankarga 5 Gold Project - All-in site costs of $538/oz for first 3 years West African Resources Limited (ASX, TSXV: WAF) is pleased to announce results of its technical and financial assessment of an oxide heap leach starter project on its Mankarga 5 Gold Project, Burkina Faso.

This assessment constituted a Pre-Feasibility Study (PFS) incorporating updated Mineral Resource, mining schedule, column test work and cost inputs.

It was prepared in accordance with the requirements of both the Australian 2012 JORC Code and Canadian NI 43-101. Highlights Base case is stated on a pre-tax basis assuming 100% project at a gold price of $1,300/oz.

All amounts are in US dollars. Pre-production capital of $46.6 million, including $8.7 million working capital and contingency Annual gold production of 69,000 ounces for first three years, 49,000 ounces for life of mine Mine life of 7 years Cash costs of $428/oz for first 3 years, $635/oz life of mine All-in site costs of $538/oz for first 3 years, $749/oz life of mine IRR of 63% with a 14 month payback on capital due to strong early project cashflow Pre-tax cash flow after initial and sustaining capital costs of $146 million Pre-Tax NPV5% of $117 million, Post-Tax NPV5% of $86 million 59% increase to in-pit inventory now 440,000oz, life of mine strip ratio 2:1 Indicated resources increased 57% from scoping study to 8.4Mt at 1.8g/t Au (495koz), Inferred resources increased 39% to 15.2Mt at 1.6g/t Au (791koz) at a 1g/t Au cut-off Potential to upgrade in-pit Inferred Resources currently treated as waste in mining schedule More than one million ounces of Resource remaining, open at depth, beneath oxide starter pit Company fully-funded from Macquarie Bank to complete BFS by Q3 2015 Managing Director Richard Hyde said:"The PFS shows the project is robust and generates significant early cashflow, producing an average of 69,000 ounces a year over the first three years, at a cash cost of US$428/oz." "The project has excellent upside.

Inferred Resources in the pit are currently treated as waste in the study mining schedule, and with further drilling should be upgraded.

There are also high-grade targets within short trucking distance, and a remaining resource of more than one million ounces beneath the proposed oxide starter pit." "We are fully-funded to deliver a final feasibility study within six months, and are targeting production in early 2016." Click here to view the full announcement
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