Name of the Project
Kiaka gold project.

Location
About 45 km south of West African Resources’ (WAF’s) existing Sanbrado gold mine, in Burkina Faso.

Project Owner/s
WAF (90%) and the government of Burkina Faso (10%).

Project Description
A feasibility study concluded on the project in August 2022 has indicated that Kiaka will be a low-cost gold project, averaging 219 000 oz/y of gold production over an 18.5-year mine life from 2025.

The feasibility study is based on conventional openpit mining methods, with run-of-mine ore being directly fed to the crushing circuit. Mining operations will use a combination of 140 t and 230 t hydraulic excavators, complemented by 95 t dump trucks.

Kiaka’s free-milling gold ore will be processed through a conventional single-stage gyratory crushing and semiautogenous grinding (SAG) ball mill crusher milling circuit, followed by carbon-in-leach (CIL) processing.

The process plant will have a nameplate capacity of seven-million tonnes a year.

Potential Job Creation
None stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $1.24-billion and an after-tax internal rate of return of 21.4%, with a 3.25-year payback on preproduction capital.

Capital Expenditure
$430-million.

WAF secured a $265-million syndicated corporate loan facility from Sprott Resource Lending Corp and Coris Bank International SA in June 2023, ensuring that the project is fully funded to production.

Planned Start/End Date
Preproduction mining is expected to start in 2025. The project remains on schedule to pour first gold in the third quarter of 2025.

Latest Developments
WAF has fully drawn down the $265-million secured loan facility from Sprott Resource Lending and Burkina Faso-based Coris Bank International for the development of the Kiaka project and other corporate purposes.

This comes as WAF received the final $100-million from Coris, the company reported on June 21, putting the company in a cash position that will allow for it to complete construction of the project and start gold production in the third quarter of the 2025 calendar year.

Construction is 50% complete, with 75% of costs committed and fixed. At the time of reporting, on June 21, construction of the main camp ancillary, plant security and mine services buildings was well advanced, with 304 camp rooms available for occupancy and dry and wet mess in full operation.

WAF has progressed construction of the CIL tanks, with tanks one and two completed and tanks three to nine progressing as planned.

Primary crusher concrete foundations and the first structure lift have been completed and the apron feeder installed. The company has reported that the perimeter fencing of the project area is practically complete, and all affected people within the project area have been relocated.

Bulk earthworks for the main water storage dam have been completed and tailings storage facility earthworks are progressing well.

Major equipment deliveries have continued during the current quarter, with major equipment including SAG mill shells, ball and SAG ring gears, trunnions, pinions, heads and all mill motors having arrived on site.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
WAF, tel +61 8 9481 7344 or email info@westafricanresources.com.