Additional Oxide Gold Identified from First Pass RC at M1 Prospect 8m at 1.5g/t Au from 25m End of Hole

Perth, Australia (FSCwire) - Gold developer West African Resources Limited (ASX, TSXV: WAF) is pleased report the first results from shallow oxide drilling at the Mankarga 1 prospect, Tanlouka Permit, Burkina Faso.

Managing Director Richard Hyde commented:

“Shallow RC drilling at the M1 prospect has intercepted mineralisation in the oxide zone beneath artisanal workings and above historic drilling.

“The results at M1 will be added to the current Feasibility Study. Adding higher grade oxide tonnes to the mine schedule will enhance the economics of the project.

“RC drilling is ongoing at M1 and, importantly, only 15% of the current program has been completed.”

RC drilling at the M1 prospect has intercepted oxide mineralisation beneath historic artisanal workings with two scissor holes ending in mineralisation (Figure 1 and 2). Shallow first pass RC drilling is being completed with an Aircore rig drilling to blade refusal as such TAC0657 and TAC0658 both ended in quartz veining returning 8m at 1.5g/t Au and 6m at 1.3g/t Au respectively. These results are up dip of historic RC hole TAN10-RC-23, drilled in 2010, which returned high-grade results of 2m at 25g/t Au from 58m. It is expected that oxide mineralisation from M1 will exhibit similar metallurgical characteristics to M5 oxides, therefore will be amenable to heap leach processing.

None of the gold mineralisation at the M1 prospect is currently included the project resource inventory. M1 mineralisation will be modelled and incorporated in a resource update later this year, and subsequently added to the mine schedule. Any additional higher grade oxide tonnes will have a positive impact on the project economics. RC drilling targeting oxide mineralisation at M1 is approximately 15% complete, with initial results including:

- TAC0656: 2m at 0.78g/t Au from surface

- TAC0656: 1m at 0.74g/t Au from 6m

- TAC0657: 8m at 1.45g/t Au from 25m, ending in mineralization

- TAC0658: 6m at 1.32g/t Au from 21m, ending in mineralization

- TAC0659: 1m at 0.65g/t Au from surface


An updated cross-section of through M1 and a summary plan showing results from recent drilling is shown below in Figures 1 and 2, with results presented in Table 1.

Figure 1: M1 Cross-Section NW0200
http://fscwire.com/sites/default/files/NR/661/7475_image1.png

Figure 2: Mankarga Exploration Summary Plan
http://fscwire.com/sites/default/files/NR/661/7475_image2.png

Infill RC drilling has also been completed at the northeastern end of the proposed starter pit at M5 (Figure 2). Results from infill drilling will enable Inferred Resources currently treated as waste the study mine plan to be upgraded to Indicated status and incorporated in the mine schedule. Significant results include:

- TAC0518: 2m at 0.68g/t Au from 7m

- and 2m at 1.01g/t Au from 12m

- and 2m at 2.6g/t Au from 20m

- and 1m at 0.54g/t Au from 35m

- TAC0520: 10m at 2.88g/t Au from 7m

- and 5m at 0.69g/t Au from 24m

- TAC0521: 18m at 1.02g/t Au from 1m


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. Follow-up RC drilling is underway and results will be reported as they are received by the company.


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.


Table 1: Mankarga Significant Intercepts 0.5 g/t Cut Off

Hole ID From To Interval Au g/t Dip Azi EOH Easting Northing RL Prospect
TAC0503 12 13 1 0.53 -50 120 28 743369 1337874 283 M5
TAC0504 6 7 1 1.83 -50 120 24 743378 1337868 283 M5
TAC0505 4 5 1 0.96 -50 120 9 743390 1337864 285 M5
TAC0506 8 10 2 0.87 -50 120 25 743396 1337860 285 M5
TAC0506 21 22 1 0.54 -50 120 25 743396 1337860 285 M5
TAC0507 11 12 1 0.5 -50 120 25 743409 1337851 285 M5
TAC0509 4 5 1 1.29 -50 120 29 743436 1337833 284 M5
TAC0510 9 10 1 0.56 -50 120 17 743454 1337828 284 M5
TAC0510 15 16 1 0.54 -50 120 17 743454 1337828 284 M5
TAC0511 12 13 1 2.58 -50 120 19 743395 1337912 283 M5
TAC0515 12 13 1 3.39 -50 120 40 743437 1337890 283 M5
TAC0516 12 13 1 0.5 -50 120 23 743459 1337877 283 M5
TAC0518 7 9 2 0.68 -50 120 39 743436 1338010 283 M5
TAC0518 12 14 2 1.01 -50 120 39 743436 1338010 283 M5
TAC0518 20 22 2 2.6 -50 120 39 743436 1338010 283 M5
TAC0518 35 36 1 0.54 -50 120 39 743436 1338010 283 M5
TAC0519 1 2 1 2.74 -50 120 36 743465 1338011 283 M5
TAC0519 11 12 1 0.62 -50 120 36 743465 1338011 283 M5
TAC0519 30 34 4 0.68 -50 120 36 743465 1338011 283 M5
TAC0520 7 17 10 2.88 -50 120 31 743485 1337999 283 M5
TAC0520 24 29 5 0.69 -50 120 31 743485 1337999 283 M5
TAC0521 1 19 18 1.02 -50 120 21 743495 1337980 283 M5
TAC0522 0 1 1 1.01 -50 120 22 743504 1337972 283 M5
TAC0522 5 8 3 0.62 -50 120 22 743504 1337972 283 M5
TAC0527 28 29 1 0.75 -50 120 29 743299 1337803 286 M5
TAC0529 12 13 1 0.61 -50 120 22 743326 1337787 286 M5
TAC0531 8 10 2 0.78 -50 120 19 743348 1337775 285 M5
TAC0532* 27 28 1 1.61 -50 120 28 743358 1337769 285 M5
TAC0534 1 2 1 0.81 -50 120 18 743386 1337754 285 M5
TAC0534 4 5 1 0.66 -50 120 18 743386 1337754 285 M5
TAC0534 8 9 1 0.51 -50 120 18 743386 1337754 285 M5
TAC0535 5 6 1 1.31 -50 120 24 743395 1337750 285 M5
TAC0536 21 26 5 0.82 -50 120 29 743407 1337742 285 M5
TAC0538 39 41 2 1.01 -50 120 42 743227 1337720 287 M5
TAC0540 23 24 1 0.52 -50 120 39 743272 1337696 286 M5
TAC0543 24 25 1 0.53 -50 120 33 743314 1337662 285 M5
TAC0544 1 2 1 0.56 -50 120 25 743332 1337651 285 M5
TAC0544 19 20 1 0.53 -50 120 25 743332 1337651 285 M5
TAC0544 22 23 1 0.58 -50 120 25 743332 1337651 285 M5
TAC0548 25 26 1 0.98 -50 120 30 743648 1337823 282 M5
TAC0553 1 2 1 0.5 -50 120 39 743482 1338154 286 M5
TAC0566 16 17 1 0.58 -50 120 30 743597 1338086 285 M5
TAC0566 26 27 1 1.01 -50 120 30 743597 1338086 285 M5
TAC0568 18 19 1 1.32 -50 120 28 743622 1338072 284 M5
TAC0572 9 11 2 0.68 -50 120 30 743663 1338047 284 M5
TAC0588 2 3 1 4.14 -50 120 17 743926 1337891 280 M5
TAC0597 6 7 1 0.67 -50 120 17 743995 1337855 282 M5
TAC0604 10 14 4 0.73 -50 120 16 744046 1337826 282 M5
TAC0607 13 14 1 0.72 -50 120 20 743987 1338092 280 M5
TAC0607 15 16 1 0.52 -50 120 20 743987 1338092 280 M5
TAC0611 12 13 1 0.87 -50 225 18 741502 1337455 305 M1
TAC0611 16 17 1 1.15 -50 225 18 741502 1337455 305 M1
TAC0612 3 4 1 0.5 -50 225 19 741496 1337448 305 M1
TAC0626 10 11 1 0.67 -50 225 22 741385 1337339 304 M1
TAC0627 9 10 1 0.69 -50 225 21 741377 1337330 304 M1
TAC0632 0 1 1 0.58 -50 225 34 741455 1337550 304 M1
TAC0638 1 2 1 0.73 -50 225 15 741392 1337487 306 M1


Table 1: Mankarga Significant Intercepts 0.5 g/t Cut Off

Hole ID From To Interval Au g/t Dip Azi EOH Easting Northing RL Prospect
TAC0640 10 12 2 0.85 -50 225 26 741377 1337472 306 M1
TAC0649 4 6 2 0.6 -50 225 16 741324 1337418 305 M1
TAC0650 0 1 1 0.89 -50 225 17 741318 1337412 305 M1
TAC0650 7 9 2 1.38 -50 225 17 741318 1337412 305 M1
TAC0653 12 13 1 0.8 -50 225 23 741295 1337389 305 M1
TAC0656 0 2 2 0.78 -50 225 25 741375 1337610 305 M1
TAC0656 6 7 1 0.74 -50 225 25 741375 1337610 305 M1
TAC0657* 25 33 8 1.45 -50 225 33 741365 1337599 304 M1
TAC0658* 21 27 6 1.32 -50 45 27 741338 1337573 305 M1
TAC0659 0 1 1 0.65 -50 45 22 741327 1337562 305 M1

- * denotes ending in mineralisation

- All holes are RC holes.

- All reported intersections from the current 2015 program are assayed at 1m intervals.

- Mineralised intervals reported with a maximum of 2 metre of internal dilution of less than 0.50g/t gold (Table 1)

-Sample preparation and Fire Assay conducted by BIGS Ouagadougou. Assayed by 50g fire assay with AAS finish.

- All holes are diamond core holes.

- All reported intersections from the current 2014 program are assayed at 1m intervals.

- Mineralised intervals reported with a maximum of 2 metre of internal dilution of less than 0.20g/t gold (Table 1) or 2g/t Au (Table 2). No top cut applied.

- Sample preparation and Fire Assay conducted by BIGS Ouagadougou. Assayed by 50g fire assay with AAS finish.

- QA/QC protocol: For RC samples we insert one blank, one standard and one duplicate for every 17 samples (3 QA/QC within every 20 samples).


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
http://fscwire.com/newsrelease/additional-oxide-gold-identified-first-pass-rc-m1-prospect-8m-15gt-au-25m-end-hole