West African Resources reports maiden underground resource at M5 South

West African Resources Limited (ASX: $WAF) has reported positive results of resource estimation and scoping studies for a potential underground development beneath the M5 South open-pit at their Sanbrado Gold Operations in Burkina Faso. The maiden underground Mineral Resource Estimate delivers 2.4Mt at 3.8 g/t Au for 289koz gold, with potential to extend underground mine life and increase gold production.

Executive Commentary on M5 South Underground Resource

WAF's Executive Chairman Richard Hyde expressed satisfaction with the maiden underground resource of 2.4 Mt at 3.8 g/t Au for 289kozs for M5 South underground. The scoping studies have outlined the potential for an initial 5-year underground mine life at M5 South producing an average of 35,000 ounces of gold per annum. This is expected to displace lower grade open-pit ore annually, resulting in an increase in annual production by up to 25,000 ounces of gold per annum over the current 10-year production plan.

Summary of West African Resources Announcement

West African Resources has delivered a maiden underground resource estimate at M5 South, with potential to extend the mine life and increase annual gold production. The company aims to complete further drilling, geotechnical studies, and mine planning during 2024, with the goal of commencing portal establishment and underground development in H2 2025, leading to full underground production by mid-2026. The company's unhedged Mineral Resources and Ore Reserves stand at 12.6 million ounces and 6.4 million ounces of gold, respectively, with an unhedged 10-year production outlook estimating production of more than 200,000 ounces of gold per annum in 2023 and 2024, and more than 400,000 ounces of gold per annum from 2025 to 2032.