PERTH (miningweekly.com) – Gold miner West African Resources on Tuesday announced plans to investigate synergies with TSX-listed Orezone Gold Corporation over their respective mining projects in Burkina Faso.

Orezone’s Bomboré and West African’s Sanbrado operating centres are located 14 km from each other and currently host 11-million ounces in gold resources. West African is also building the 7.7-million-ounce Kiaka gold project located 45 km south of Sanbrado with gold production planned to commence in 2025.

The two operating mines, development projects, and exploration tenure cover a contiguous area of over 1 800 km² and 100 km strike of highly prospective greenstone belts and structures.

West African told shareholders on Tuesday that a memorandum of understanding (MoU) between the two companies would allow them to investigate synergies on their respective mining projects, which could unlock significant value for all stakeholders.

The MoU will be focused on specific areas of cooperation, including grid power, thermal back-up power, renewable energy, procurement and supply chains, common spares, community and corporate social responsibilities, and security.

“The ongoing discussions between West African and Orezone reflect a common-sense approach to reduce costs and optimise invested capital. We expect this cooperative approach will enable both companies to enhance returns to shareholders, as well as deliver on the long-term future of gold mining in this region of Burkina Faso,” said West African executive chairperson and CEO Richard Hyde.

Orezone president and CEO Patrick Downey said the MoU represented an effective way to generate long-term value from each of the assets in Burkina Faso with the active participation of the neighbouring communities.

“With the broader industry continuing to face cost inflation, this MoU represents an important opportunity to further improve our cost structure and create further value for our shareholders. As Orezone and West African look to advance these initiatives, we will continue to pursue the highest standards in safety, along with responsible and meaningful engagement with our employees, communities and other stakeholders,” Downey said.