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PERTH (miningweekly.com) – The Mankarga 5 gold project, in Burkina Faso, would require a capital investment of about A$46.6-million, owner West African Resources said on Monday, announcing the results of a prefeasibility study (PFS).
The ASX- and TSX-listed company revealed that the project would produce 69 000 oz/y over the first three years of operation, and average at 49 000 oz/y over its seven-year mine life.
The project was expected to have an internal rate of return of 63% and a pre-tax net present value of A$117-million.
“The project has excellent upside. Inferred resources in the pit are currently treated as waste in the study mining schedule, and with further drilling should be upgraded. There are also high-grade targets within short trucking distance, and the remaining resource of more than one-million ounces beneath the proposed oxide starter pit,” said West African MD Richard Hyde.
The PFS assumed throughput of 1.6-million tonnes a year, which was in line with a processing plant purchased in 2014. The PFS was based on 19-million tonnes of indicated resource, grading 1.2 g/t gold for 736 000 oz of gold, and an inferred resource of 40.4-million tonnes, grading 1 g/t gold for 1.35-million ounces.
Cash costs for the first three years of operations have been estimated at A$428/oz, and for the mine life at A$635/oz, while all-in site costs for the first three years have been estimated at A$538/oz, and at A$749/oz for the life of the project.
Hyde said on Monday that West African was fully funded to deliver the project to the feasibility study stage within the next six months, and was targeting first production from Mankarga 5 by early 2016.
Environmental-impact assessments were ongoing, and would be completed by the second quarter of 2015.