Outstanding Results at Mankarga 1 Prospect up to 4g/t Au in Auger Drilling in Parallel Zones over 1.5km
18.06.2015 | FSCwire
Perth, Australia (FSCwire) - Gold developer West African Resources Limited (ASX, TSXV: WAF) is excited to announce outstanding results from auger drilling at the Mankarga 1 prospect, Tanlouka Permit, Burkina Faso.Managing Director Richard Hyde commented:
“Auger drilling over the M1 area has returned high-grade results within multiple trends along strike and parallel to artisanal workings and historic drilling.”
“Results confirm our updated geological interpretation and contract a RC rig has mobilised to site to commence immediate drilling.
“Given the proximity of M1 to the starter project, positive results from follow-up RC drilling have the potential to materially upgrade the current Feasibility Study through the addition of higher grade oxide tonnes to the mine schedule.”
Auger drilling at Mankarga 1 (M1) prospect has delivered high-grade results 500m northwest of the Mankarga 5 Mineral Resource (Figure 1). Significant high-grade auger assays, with a peak result of 3,851 ppb Au (3.85g/t Au), were returned from multiple parallel zones along strike and parallel with historic RC and diamond drilling, and artisanal workings. Results occur over a 1.5km mineralised trend, with potential indicated in regional auger drilling for repeat parallel structures to the west. Results confirm an updated interpretation based on detailed prospect mapping showing parallel and linking mineralised zones. To date 399 auger holes have been drilled on a 100m by 25m grid over the M1 prospect. Lines are oriented southwest-northeast, with an average depth of 6m. Drilling is continuing to the west of M1 over newly identified gold zones and to the south over the M2 prospect. Significant results are presented below in Table 1 and shown in Figures 1 and 2.
Table 1: Mankarga 1 Significant Results from Auger Drilling
Hole From To Int Au ppb Au g/t Dip Azi East North RL
TLA3578 3 6 3 3043 3.04 -90 0 741284 1337945 277
TLA3584 3 6 3 544 0.54 -90 0 741125 1337785 277
TLA3621 4 7 3 412 0.41 -90 0 741267 1337502 296
TLA3636 3 6 3 3851 3.85 -90 0 741391 1337343 296
TLA3675 3 6 3 649 0.65 -90 0 741320 1337414 297
TLA3705 2 5 3 404 0.40 -90 0 741603 1337414 295
TLA3753 4 7 3 744 0.74 -90 0 741656 1337184 292
TLA3788 2 5 3 472 0.47 -90 0 741620 1336725 292
TLA3808 4 7 3 642 0.64 -90 0 741691 1336654 289
The company is fully funded by Macquarie Bank (ASX, TSXV: 22/12/14) to complete a Feasibility Study for a heap leach starter project by Q3 of this year, which will incorporate any positive results from ongoing exploration programs. Significant results from historic drilling at Mankarga 1 are shown in Table 2 below. Follow-up RC drilling is imminent and results will be reported as they are received by the company.
Table 2: Mankarga 1 Significant Intercepts – Historic Drilling
Hole From To Interval Au g/t East North RL
TAN10-RC-10 56 72 16 4.80 741579 1336912 276
TAN10-RC-10 78 88 10 3.86 741579 1336900 261
TAN10-RC-12 58 66 8 31.78 741552 1336967 280
TAN10-RC-23 58 60 2 25.00 741391 1337570 285
TAN11-RC-52 46 50 4 16.95 741413 1337147 291
TAN12-DD-72 68 69.5 1.5 22.63 741548 1336971 275
TAN12-DD-73 56 69.5 13.5 10.11 741578 1336915 277
TAN12-DD-73 80 93 13 1.56 741577 1336899 259
TAN12-DD-74 64.2 68 3.8 3.25 741602 1336916 276
TAN12-DD-83 81 85 4 2.43 741472 1337136 266
Figure 1: Mankarga 1 & 5 Summary Plan
http://fscwire.com/sites/default/files/NR/661/7254_image1wa.png
Figure 2: Mankarga 1 Exploration Summary
http://fscwire.com/sites/default/files/NR/661/7254_image2wa.png
2015 PFS Highlights
West African Resources Limited completed an updated Pre-Feasibility Study report for an oxide heap leach starter project on its Mankarga 5 Gold Project, Burkina Faso in May 2015 (ASX, TSXV: 15/5/15, 29/5/2015). It was prepared in accordance with the requirements of both the Australian 2012 JORC Code and Canadian NI 43-101. The report is filed on SEDAR and on the Company’s website. A summary of the base case is stated below assuming a 100% project at a gold price of $1,300/oz. All amounts are in US dollars.
- Production of 69,000oz pa for first 3 years, 49,000oz pa for life of mine, 7 year life of mine
- Cash costs $428/oz for 3 years, $635/oz life of mine
- All-in cash costs of $538/oz for 3 years, $749/oz life of mine
- Pre-tax IRR of 63% with 14-month payback, post-tax IRR of 50% with 16-month payback
- Pre-tax cash flow of $146m, post-tax cash flow of $118m after initial and sustaining capital costs
- Pre-tax NPV5% of $117m, Post-tax NPV5% of $86m
- Probable Ore reserve of 440,000oz, life of mine strip ratio 2:1
- Potential to upgrade in-pit Inferred Resources currently treated as waste in mining schedule
- Nearby drill ready oxide targets with potential to add to the base case
Mankarga5 April 2015 Resource
Cut-off Indicated Resource Inferred Resource
(Au g/t) Tonnes Grade Au Oz Tonnes Grade Au Oz
(Au g/t) (Au g/t)
Oxide 0.5 7,200,000 1.2 273,000 800,000 0.8 20,000
1 3,100,000 1.8 180,000 200,000 1.2 7,000
Transitional 0.5 2,300,000 1.2 89,000 500,000 0.9 13,000
1 1,000,000 1.9 60,000 200,000 1.3 6,000
Fresh 0.5 9,500,000 1.2 377,000 39,100,000 1.0 1,320,000
1 4,200,000 1.9 256,000 14,800,000 1.6 778,000
Total 0.5 19,000,000 1.2 736,000 40,400,000 1.0 1,350,000
1 8,400,000 1.8 495,000 15,200,000 1.6 791,000
Mankarga5 May 2015 Ore Reserve
Category Strongly
Oxidised Moderately
Oxidised Transition Fresh Total
Mt Au g/t Au Mt Au
g/t Au Mt Au Au Mt Au Au Mt Au Au
koz koz g/t koz g/t koz g/t koz
Probable 3.0 1.10 96 5.4 1.04 183 1.3 1.46 63 1.5 2.11 98 11.2 1.22 440
Cautionary Note:
Mineral Resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
Production targets for the proposed heap leach starter project referred to in this announcement were first released to the ASX and TSXV on 23 February 2015. They are preliminary and there is no certainty that the production targets, or the forecast financial information derived from the production targets, will be realised. All material assumptions underpinning production targets or forecast financial information derived from production targets continue to apply and have not materially changed.
Competent Person’s Statement
Information in this announcement that relates to exploration results, exploration targets or mineral resources is based on information compiled by Mr Richard Hyde, a Director, who is a Member of The Australian Institute of Mining and Metallurgy and Australian Institute of Geoscientists. Mr Hyde has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and a Qualified Person under National Instrument 43-101. Mr Hyde consents to the inclusion in this announcement of the statements based on his information in the form and context in which they appear.
Forward Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian and Australian securities legislation, including information relating to West African's future financial or operating performance may be deemed “forward looking”. All statements in this news release, other than statements of historical fact, that address events or developments that West African expects to occur, are “forward-looking statements”. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “does not expect”, “plans”, “anticipates”, “does not anticipate”, “believes”, “intends”, “estimates”, “projects”, “potential”, “scheduled”, “forecast”, “budget” and similar expressions, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur. All such forward-looking statements are based on the opinions and estimates of the relevant management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond West African’s ability to control or predict. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. In the case of West African, these facts include their anticipated operations in future periods, planned exploration and development of its properties, and plans related to its business and other matters that may occur in the future. This information relates to analyses and other information that is based on expectations of future performance and planned work programs. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encountered if a mineral property is developed.
Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation: exploration hazards and risks; risks related to exploration and development of natural resource properties; uncertainty in West African’s ability to obtain funding; gold price fluctuations; recent market events and conditions; risks related to the uncertainty of mineral resource calculations and the inclusion of inferred mineral resources in economic estimation; risks related to governmental regulations; risks related to obtaining necessary licenses and permits; risks related to their business being subject to environmental laws and regulations; risks related to their mineral properties being subject to prior unregistered agreements, transfers, or claims and other defects in title; risks relating to competition from larger companies with greater financial and technical resources; risks relating to the inability to meet financial obligations under agreements to which they are a party; ability to recruit and retain qualified personnel; and risks related to their directors and officers becoming associated with other natural resource companies which may give rise to conflicts of interests. This list is not exhaustive of the factors that may affect West African’s forward-looking information. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information.
West African’s forward-looking information is based on the reasonable beliefs, expectations and opinions of their respective management on the date the statements are made and West African does not assume any obligation to update forward looking information if circumstances or management’s beliefs, expectations or opinions change, except as required by law. For the reasons set forth above, investors should not place undue reliance on forward-looking information. For a complete discussion with respect to West African, please refer to West African’s financial statements and related MD&A, all of which are filed on SEDAR at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Section 1: Sampling Techniques and Data
Section 2 Reporting of Exploration Results
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