March 2014 Quarter Management Discussion and Analysis
Perth, May 16, 2014 AEST (ABN Newswire) - West African Resources Limited (
ASX:WAF) (CVE:WAF) Presented a discussion of the activities, results of operations and financial condition of West African Resources Ltd. ("West African" or the "Company") for the three and nine month period ended March 31, 2014, compared to the same periods in the preceding year. This management discussion and analysis ("MD&A") was prepared using information available as of May 12, 2014 and should be read in conjunction with the Company's unaudited consolidated interim financial statements for the three and nine month period ended March 31, 2014 and notes thereto. These unaudited consolidated interim financial statements (the "Interim Financial Statements") are prepared in accordance with International Financial Reporting Standards ("IFRS") for interim reporting. As a result, this MD&A should also be read in conjunction with the audited annual financial statements for the year ended June 30, 2013 and notes thereto. The Interim Financial Statements include the accounts of the Company and its subsidiaries. All monetary amounts referred to herein are in Australian dollars unless otherwise stated.
Additional information relating to the Company can be found on the SEDAR website at www.sedar.com, on the Company's website at www.westafricanresources.com.
OPERATIONS HIGHLIGHTS
West African Resources Limited (ASX:WAF) is pleased to report activities on its 100%-owned and 100%-earning gold and copper-cold projects in Burkina Faso, West Africa, for the quarter ending 31 March 2014.
Highlights
- Resource estimate updated for Mankarga 5 gold deposit
- Inferred Resources increased by 74% to 1.1Moz
- Indicated Resources increased by 12% to 0.4Moz
- 1.6Mtpa heap leach plant purchased - aiming for 50,000ozpa gold production at Mankarga 5 within 2 years
- Scoping Study due June quarter 2014
- West African signs agreement for final 10% of Tanlouka Permit, WAF now have right to acquire 100% WAF following positive feasibility study
- Completion of 10% placement to raise $3 million
Exploration Highlights
- Completed aircore program at Mankarga 5 (4,600m)
- Ongoing diamond program at Mankarga 5 (1,200m+)
- Auger drilling encompassing Tanlouka tenement commenced (Mankarga 1-4, Manesse, Tanwaka targets)
- Aircore program commenced at Goudre
March 2014 Quarter Summary:
- 5,303m drilled
- $930k Exploration Expenditure
- $352k Administration Costs
- $1.2m cash at 31 March 2014 ($4m after April 2014 placement)
- Fully funded exploration programs into 2014
An updated independent resource estimate for the Mankarga 5 deposit at the Tanlouka Permit, part of the Boulsa Gold Project, was completed and reported on 14 April 2014, increasing the Inferred Resources by 74% and the Indicated Resources by 12% (using a 0.5g/t gold cut-off). This followed West African entering an agreement to acquire the remaining 10% of the Tanlouka Permit in March. The Company now has the right to earn 100% of the project following completion of a positive feasibility study.
West African purchased a used 1.6Mtpa heap leach plant for the Boulsa Project in February and is targeting gold production from the Mankarga 5 deposit within two years. A scoping study to determine the economic potential of a low cost heap leach starter project will be completed by the end of June 2014.
A breakdown of drilling for the March Quarter includes:
- Diamond: 10 holes for 1,828.2 m
- Auger: 281 holes for 1,550 m
- AC: 72 holes for 1,925 m
The Company's objective is to develop a low cost heap leach operation from the combination of the Mankarga 5 deposit and nearby prospects including targets at Moktedu and Goudre. To achieve this stated goal the Company has completed a resource update at Mankarga 5 during the March quarter, leading to the completion of a scoping Study and Preliminary Economic Assessment (PEA) in the June 2014 Quarter.
To view the complete report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-WAF-678003.pdf
About West African Resources Limited
West African Resources Limited (
ASX:WAF) (CVE:WAF) is a gold-copper exploration company dedicated to creating shareholder value through the acquisition, exploration and development of resource projects in Burkina Faso, West Africa.
West African has a landholding of 6,370sq km and 200km of strike length of early Proterozoic Birimian greenstone belts, which are highly prospective for gold mineralisation.
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