West African Resources (ASX:WAF) plans to integrate the recent Scoping Study results into an upcoming 10-year production plan for the Toega open pit mine in Burkina Faso.
The study outlines a seven-year mine life with underground gold production averaging 81,000 ounces per year from years two to six. Toega is also expected to deliver 5.7 million tonnes of gold @ 2.8 grams per tonne for 515,000 ounces.
Under the Scoping Study, Toega is forecast to have a pre-production capital expenditure of US$42 million ($65.77 million) at an all-in sustaining cost of US$1,244 per ounce.
Executive Chairman Richard Hyde says the underground material at Toega is expected to displace up to 1 million tonnes per year of lower grade open-pit, resulting in a potential increase in annual production of 50,000 ounces of gold.
West African, which has a market capitalisation of $2.55 billion, says the study proposed portal established works to begin in 2028, with initial development ore expected 12 months after the portal is established.
The production ore is expected to ramp up shortly thereafter and reach steady-state around two years after portal establishment.
Integrating the study’s results into the production plan will target higher grade underground feed from Toega to displace lower grade open-pit material with the aim of increasing overall gold production from the Sanbrado process plant.
The company has begun investigating adding secondary crushing at the Sanbrado process plant — which has potential to maintain Sanbrado mill throughput rates near current levels of circa 3 million tonnes per year in future years.
Hyde says the investigation’s results are expected to be included in the company’s next 10-year production plan update which will be released in late Q2 2024.
“West African’s projects are long-life with Sanbrado +10 years and Kiaka 20 years,” Hyde says.
“We are actively looking at opportunities to reduce costs and increase gold production through targeted drilling and capital works programs; including connecting to grid power and secondary crushing at our projects as we aim to be a sustainable +500,000 ounces per annual gold producer within five years.”
The Scoping Study results were accompanied by a maiden underground resource for Toega of 4.9 million tonnes @ 3.5g/t gold for 560,000 ounces. The resource remains open at depth and is currently constrained by the depth of drilling.
Once the study results are incorporated into the production plan, West African will conduct infill drilling and geotechnical and metallurgical testwork.
This will be followed by a detailed owner mining study and work to optimise mine design and schedule.
Write to Aaliyah Rogan at Mining.com.au
Images: West African Resources
