West African Resources Share Price on the Move with High-Grade Gold

West African Resources Share Price on the Move with High-Grade Gold

The West African Resources Ltd [ASX:WAF] share price has risen today upon visible gold found in deep drilling at its Sanbrado Gold Project in Burkina Faso.

WAF shares have been on a steady rise since April, when it added 1.1 million ounces to its portfolio through the acquisition of the Toega gold deposit for a cool US$45 million.

That momentum has continued today, with the prospect the African-focused miner could extend its mine life at Sanbrado.

At time of writing, WAF shares are up 5.91% or 6 cents to trade at $1.08 per share.

ASX WAF Share Price Chart - West African Resources ASX

Source: Tradingview

Gold extended at depth

WAF has released results today from its first drilling undertaken at the M1 South deposit at Sanbrado since 2018.

Back then the final hole drilled returned 25m at 15.03 grams of gold per tonne (g/t), including 5.5m at 40.4 g/t gold.

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Which left WAF with a tantalising target to chase when exploration kicked off again.

And results haven’t disappointed.

Highlights include:

  • 5m at 20.5 g/t from 852m, including ­5m at 52.2 g/t
  • 32m at 4.9 g/t from 854.5m, including ­4m at 14.3 g/t
  • 7m at 7.8 g/t from 1,238m, including 1m at 29.9 g/t

WAF says the drilling intercepted wide intersections of high-grade gold and has extended the depth of known mineralisation to 950m below surface.

More than 400m below the current underground ore reserve.

West African Resources Gold Deposits

Source: West African Resources

The latest gold hits confirm the predictable geometry of the high-grade gold zone, according to WAF.

Sanbrado scheduled for resource upgrade

Drilling is continuing at Sanbrado with two drilling rigs operating on a double shift schedule.

A further two holes are currently being drilled and are expected to reach their respective target zones over the next two weeks.

WAF says the new results will be incorporated into an updated resource, reserve and life of mine plan in late Q4 2020.

Currently, Sanbrado has an initial 10-year mine life, including 6.5 years of underground mining.

And a probable resource reserve of 1.7 million ounces.

It also has a serious economic upside.

All-in-sustaining-costs (AISC) are expected to be US$500 in the first year and US$650 over life of mine.

Though, with the addition of Toega (located within 14km of Sanbrado), there could be even further benefits to production and mine life realised.

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Kind regards,

Lachlann Tierney,

For The Daily Reckoning Australia