West African Resources (ASX:WAF) has poured the first gold bar, weighing 5.7kgs, ahead of schedule and under budget, at the Kiaka Gold Project in Burkina Faso.
Executive Chairman Richard Hyde says the first gold bar is a “major” milestone for the company and a key step towards its target of being a more than 500,000 ounces per year gold producer by 2030.
“First gold comes just three and a half years after the acquisition of Kiaka, which is a remarkable achievement by the WAF team,” Hyde says.
Construction and commissioning activities are completed in all areas, with the exception of the high-voltage grid power connection.
The processing plant has also been performing well during early operations, with stable throughout and metallurgical recoveries exceeding the company’s expectations.
West African, which has a market capitalisation of $2.5 billion, will continue to ramp-up operations through Q3 2025, with further performance improvements expected once grid power is fully available.
The team expects to ramp Kiaka up to nameplate throughput during Q3. At the time of announcing, West African had proceeded 140,000 tonnes @ 0.7 grams per tonne gold through the project’s plant, with indicative metallurgical recoveries of 92%.
Hyde notes with the Kiaka build completed and production ramp-up underway, the company has realised its strategy of having “two long-life, unhedged, low-cost gold production centres in operation in 2025”.
West African’s Sanbrado Gold Operations, located 90km east-southeast of Ouagadougou, achieved its first gold pour during March 2020.
The Kiaka Gold Project has a resource of 285 million tonnes @ 0.9g/t gold for 7.9 million ounces and a reserve of 164 million tonnes @ 0.9g/t gold for 4.8 million ounces. The project is expected to have a 20-year mine life producing up to 234,000 ounces of gold per year.
Trading Economics says gold steadied around US$3,270 ($5,003) per ounce yesterday (30 June), but remained close to its lowest level in a month, as Middle East tensions calmed down and progress in trade negotiations diminished the bullion’s appeal as a safe-haven asset.
Write to Aaliyah Rogan at Mining.com.au
Images: West African Resources
