West African Resources’ (ASX:WAF, CVE:WAF) shares were trading 12% higher intra-day after intersecting high-grade gold from drilling at its Sanbrado Gold Project in Burkina Faso.
The drilling at the M1 deposit returned 21 metres at 53 g/t gold from 409 metres including 0.5 metres at 1,613 g/t gold and 0.5 metres at 530 g/t gold.
Five out of six diamond holes have hit extremely high grades over significant widths which will add to the resource base and have a material impact on project economics.
West African’s February 2017 open-pit feasibility study demonstrated robust economics, rapid payback of capital and simple metallurgy for the Sanbrado Gold Project.
However, it did not reflect the full potential of the project, as demonstrated by the results of drilling completed since the open-pit feasibility study was released.
The current drilling program has defined mineralisation outside the M1 South pit, which was the basis of the open-pit feasibility study, and may result in a material increase in the mine life.
West African has now decided to focus on resource and extensional drilling for the remainder of 2017, and will revisit development scenarios in the first half of 2018.
The company is expected to complete a resource update in Q3 2017.
West African has six rigs on site and is well-funded to complete its proposed work programs, with $14 million cash and over $7.5 million ‘in-the-money’ options.