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
Midtier gold producer WAF (90%) and the government of Burkina Faso (10%).

Project Description
A feasibility study update published on July 2, 2024, has confirmed the strong cash flows expected from the project and incorporates improvements of the project’s initial feasibility study, released on August 3, 2022.

Average gold production is estimated at 258 000 oz/y in first five years; and at 234 000 oz/y over the forecasted 20-year mine life.

The 2024 feasibility update incorporates a change from contract mining to an owner mining strategy, enabling WAF to realise greater benefits from the long-life and consistent mining rates of the large-scale Kiaka openpit operations. The investment includes new, larger-sized equipment and robust, fully equipped mine maintenance facilities. Bigger 230 t excavators have been matched to bigger 140 t dump trucks, compared with the 140 t excavators and 95 t trucks used in the 2022 feasibility study, allowing for an increase to the openpit mining rate by 3.3-million tonnes a year.

The 2024 feasibility study update is based on conventional openpit mining methods, with run-of-mine (RoM) ore being directly fed to the crushing circuit. 

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

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an improved after-tax net present value, at a 5% discount rate, of $1.18-billion and an internal rate of return of 27%, with a pretax payback of 2.25 years on pre-production development capital.

Capital Expenditure
The feasibility study update estimates preproduction development capital at $447-million, excluding owner mining.

Planned Start/End Date
Kiaka is on schedule for first gold production in the third quarter of 2025.
 
Latest Developments
WAF has said its securities should return to trade after the company confirmed its being in full compliance with ASX listing rules and released details of ongoing discussions with the Burkina Faso government about a possible increase in the State’s equity interest in Kiaka.

The Burkina Faso government recently requested to acquire an additional stake in Kiaka, prompting a series of meetings between WAF and State officials.

WAF has said these engagements were focused on supporting the long-term sustainable growth of the country’s gold mining industry, with government affirming its commitment to an outcome that respects the legitimate interests of all parties involved.

The Sanbrado and Toega projects have not formed part of these discussions.

As an alternative to the State's acquiring a greater shareholding in Kiaka, WAF submitted a proposal aimed at increasing national participation and boosting government revenue from new and previously closed mining projects across the country.

Mines Minister Yacouba Zabré Gouba invited WAF to continue these talks with State-owned entity Société de Participation Minière du Burkina Faso (SOPAMIB), which is mandated to own and manage mining assets, stimulate investment, strengthen resource sovereignty and generate increased revenues for national development.

WAF executive chairperson and CEO Richard Hyde recently returned from Burkina Faso after meeting senior officials, including Gouba, Finance Minister Aboubacar Nacanabo and SOPAMIB director-general Lamissa Barro, to advance the discussions.

WAF has said it will continue working with SOPAMIB to identify investment opportunities that increase national participation, create jobs and unlock value from Burkina Faso’s mineral resources. It will also cooperate with SOPAMIB regarding government’s request to raise its equity interest in Kiaka in a way that protects the financial interests of existing shareholders and lenders.

Key Contracts, Suppliers and Consultants
None stated.

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