West African moves into feasibility study at Burkina Faso project
PERTH (miningweekly.com) – A scoping study into ASX- and TSX-listed West African Resources’ Mankarga 5 project, in Burkina Faso, has estimated that the gold project could have a net present value of some A$84-million.
The scoping study estimated that the project would have an internal rate of return of 57%, and would require a capital investment of some A$35-million, along with a working capital and contingency of A$9-million.
The study assumed throughput of 1.6-million tonnes a year, which was in line with the capacity of a second-hand plant, which West African bought earlier this year.
The project was expected to deliver a yearly gold production of some 59 400 oz for the first three years, and some 44 100 oz/y for the remainder of the five-and-a-half-year mine life.
“The study has shown that Stage 1 of the development of Mankarga 5 has a very short payback, high internal rate of return and net present value two-and-a-half-times that of the capital costs,” said West African MD Richard Hyde.
He noted that the study marked an important milestone for the company which can now transition from explorer to a low capital cost developer.
Hyde pointed out that there was also immediate potential to improve the project economics by upgrading the existing resource and incorporating the 14 000 m drilled since April this year, and from optimising the mining schedule further, focusing on processing higher-grade ore in the first two years of operations.
West African would conduct a scoping study into a Stage 2 sulphide project in 2015, while transitioning directly into feasibility studies for the Stage 1 project.
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