West African on track for full year targets
PERTH (miningweekly.com) – ASX-listed West African Resources is on track to meet its full year production guidance, despite gold production at its Sanbrado operation, in Burkino Faso, falling in the third quarter.
During the three months to September, gold production from Sanbrado reached 49 396 oz at an all-in sustaining cost (AISC) of $1 197/oz. This was compared with the 64 114 oz delivered in the June quarter, at an AISC of $959/oz.
West African told shareholders on Friday that some 21 267 oz of gold was produced from the underground operation, a 27% decline from the June quarter, with higher tonnage offset by a 31% fall in grades.
The openpit operation produced 21 506 oz of gold during the quarter, 37% below the previous quarter, with 19% lower ore tonnes mined and a 22% lower grade. The lower ore tonnes reflect the higher strip ratio phase of the M5 openpit mining plan with total tonnes moved in line with the previous quarter, West African said.
“Sanbrado continued its strong performance in the third quarter of 2022, generating A$70-million of operating cashflow before A$24-million of tax instalments, and closing the quarter with A$171-million cash on hand after the final $45-million payment to B2Gold to complete the acquisition of the Kiaka gold project,” said executive chairperson and MD Richard Hyde.
“Further strong results have been delivered at MV3 including 25 m at 3.9 g/t gold. MV3 is shaping up as a significant near-surface satellite openpit opportunity just 6 km from the Sanbrado mine site.
“Early works at Kiaka are progressing well and award and order of the mills is expected by the end of the fourth quarter of 2022.
“The company remains well on track to meet 2022 production guidance of 220 000 oz to 240 000 oz gold at AISC of less than $1 100/oz.”
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