High Grade Results at M1 Prospect 9m at 7.8g/t Au Including 4m at 16.9g/t Au from 8m Ending in Mineralisation

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


Highlights

- RC drilling at M1 prospect intercepts shallow oxide mineralisation

- Drilling provides potential to add ounces and increase grade to heap leach starter project

- Follow-up RC drilling planned to commence in October


Managing Director Richard Hyde commented:

“9m at 7.8g/t Au from only 8m at the M1 prospect shows there is potential to add ounces and grade to our heap leach starter project from nearby targets. M1 mineralisation will be incorporated resource inventory later this year.

“First pass drilling is in progress at the M2 and M3 prospects. Follow-up drilling at M1 will commence in October after the current wet season.”

RC drilling at the M1 prospect has intercepted shallow oxide mineralisation along strike from historic high-grade gold mineralisation at depth (Figure 1 and 2). Shallow first pass RC drilling focussing on oxide mineralisation has been completed with an Aircore rig drilling to blade refusal; as such TAC0891 ended in quartz veining returning 9m at 7.8g/t Au including 4m at 16.9 g/t Au from 8m. It is expected that oxide mineralisation from M1 will exhibit similar metallurgical characteristics to M5 oxides, and 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. First pass shallow RC drilling targeting oxide mineralisation at M1 has been completed, with initial results including:

- TAC0856: 10m at 1.04g/t Au including 1m at 5.04g/t Au from surface
- TAC0864: 5m at 1.01g/t Au from 26m
- TAC0865: 15m at 0.73g/t Au from surface
- TAC0887: 10m at 1.44g/t Au from 8m, including 2m at 4.92g/t Au*
- TAC0891: 9m at 7.8g/t Au from 8m, including 4m at 16.93g/t Au*
- TAC0933: 2m at 0.84g/t Au from 8m*
- TAC0991: 4m at 0.83g/t Au from 20m*

* denotes ended in gold mineralisation


Follow-up RC drilling is planned to commence in October after the current rainy season. This drilling will properly test mineralisation beneath historic artisanal workings and recent strong auger results with deeper >50m RC hammer and diamond core drilling. 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 SE0300
http://fscwire.com/sites/default/files/NR/661/7840_image1.png

Figure 2: Mankarga Exploration Summary Plan
http://fscwire.com/sites/default/files/NR/661/7840_image2.png

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

http://fscwire.com/newsrelease/high-grade-results-m1-prospect-9m-78gt-au-including-4m-169gt-au-8m-ending-mineralisation


Mankarga5 May 2015 Ore Reserve

http://fscwire.com/newsrelease/high-grade-results-m1-prospect-9m-78gt-au-including-4m-169gt-au-8m-ending-mineralisation


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 0.2 g/t Cut Off

http://fscwire.com/newsrelease/high-grade-results-m1-prospect-9m-78gt-au-including-4m-169gt-au-8m-ending-mineralisation

- * denotes ending in mineralisation

- All holes are RC holes.

- All reported intersections from the current 2015 program are assayed at either 1m or 4m composited intervals.

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

- Mineralised intervals reported with a maximum of 2 metre of internal dilution of less than 0.20g/t gold (Table 1). 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.


Section 1: Sampling Techniques and Data

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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.