West African Resources Advances Mining Projects in Burkina Faso
The Burkina Faso Council of Ministers has endorsed the draft decree for the issuance of a mining permit to ASX-listed West African Resources for the Toega gold deposit.
As per the Mining Code of Burkina Faso, the license will be granted to a local company, 90%-owned by West African Resources and 10%-owned by the State, spanning an initial eight-year period.
This approval marks a significant milestone for the commencement of mining operations at the Toega open-pit gold deposit, following the acquisition of Toega’s environmental permit in 2023.
With gold resources totaling 1.27 million ounces and reserves of 569,000 ounces, the Toega gold deposit is poised to supply ore feed to the company’s Sanbrado process plant in Burkina Faso for eight years, starting in 2025, via a 14 km haul road.
In addition to the Toega permit, the Burkina Faso Council of Ministers has also recommended the renewal of the Sanbrado mining permit for an additional five years.
The Sanbrado gold project is forecasted to yield between 190,000 to 210,000 ounces of gold this year, with an all-in-sustaining cost of less than $1,300 per ounce.
Over the next decade, Sanbrado is expected to maintain an average gold production exceeding 210,000 ounces per year, with a potential increase to over 230,000 ounces per year upon the commencement of the Toega open-pit and projected M5 South underground operations from 2026.
Richard Hyde, Executive Chairperson and CEO of West African Resources, expressed confidence in the company’s ability to operate efficiently and sustainably in Burkina Faso, delivering on its strategic objectives.
Hyde emphasized the significant economic contributions expected from the Toega project, including taxes, job creation, and other benefits for Burkina Faso and the surrounding communities.
Hyde also highlighted the progress of the Kiaka gold project, boasting a resource estimate of 7.9 million ounces. With the Toega mining permit secured and the development of the Kiaka project progressing on schedule and within budget, West African Resources aims to double its gold production to over 400,000 ounces per year by 2025.
