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Highlights from recent wide-spaced reverse-circulation drilling include 32 meters grading 5.02 g/t gold starting from surface.
Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.
West African Resources (TSXV:WAF)
Price: $0.08
Market cap: $21.6 million
Working capital: $5 million
Project: Tanlouka
Country: Burkina Faso
Ownership: 90 percent
Leachable reserve: Mankarga — 3.0 Mt @ 1.10 g/t Au
Project status: New brownfields discovery
- West African Resources announced the discovery of a new gold zone less than two kilometres from the starter pit at its 90% owned feasibility stage Mankarga5 prospect on the Tanlouka project in Burkina Faso. West African acquired the Tanlouka project through the August 2013 acquisition of Channel Resources
- Highlights from the current wide spaced reverse circulation (RC) drilling intersected 32 metres grading 5.02 g/t Au starting from surface. The mineralization occurs within a zone of quartz veinlets along a sheared contact between the metasediments and a diorite intrusion.
- A May 2015 Prefeasibility Study for the starter project, outlines a low capex, ($46 million), project producing 50,000 ounces of gold per year over seven years at an all-in cash cost of $538/oz for the first three years and $749/oz for life of mine. The starter pit is designed to mine heap leachable ore to a depth of 130 metres with a 2:1 strip ratio. A larger resource of sulphide material at a grade of 1.2 g/t Au exists below the pit outline but is not included in the current mine plan.
- Using an $1,100/oz gold price the project is projected to return an after tax NPV (5%) of $42 million, and IRR of 30% and a payback period of 26 months. The Company has extended the completion of the feasibility study to Q4/2015 to allow new oxide mineralization from M1 and M3 to be incorporated into the mine plan. The Company expects to continue RC drilling in October after the end of the wet season.
Discovery history: The project was acquired through the acquisition of Channel Resources in August 2013. Channel had originally optioned the property as part of the Bombore project in 1994.
Current holes: 32 metres @ 5.02 g/t Au; 15 metres @ 0.83 g/t Au
Risk Analysis
Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results.
Relevant Disclosures Applicable to: Drill Tracker Weekly
- The research analyst or a member of the research analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns no shares in the companies in this report:
Analyst Certification
I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
