PERTH (miningweekly.com) – Gold miner West African Resources has reported a 29% increase in gold production for the three months to September, as ramp-up continued at its Sanbrado operation, in Burkina Faso.
“The Sanbrado mine completed another record quarter with increased ounces and reduced costs, producing 82 000 oz of gold at all-in sustaining cost of $69/oz. West African Resources generated A$110-million of operating cash flow, repaid A$25-million of Taurus debt, and held A$130-million cash and A$23-million in unsettled bullion at the end of the quarter,” said executive chairperson and CEO Richard Hyde.
Underground mined ounces were 16% lower than the previous quarter, while mined ore tonnes decreased by 16%. Ore grade was 10 g/t, in line with the previous quarter.
Meanwhile, ounces mined from openpits was 72% above the previous quarter. Ore tonnes mined from the open pits increased by 48% on the previous quarter while grade increased by 16% largely driven by grade from M1 South, compared with the quarter ended June 2021. Run-of-mine stockpile inventory increased by 22% versus the previous quarter.
West African told shareholders that gold production compared well versus the mine plan, and the company now expects yearly gold production for Sanbrado to exceed the 2021 guidance range of 250 000 oz to 280 000 oz of gold.
“The company continues to accelerate Taurus debt repayments with an additional $28-million repaid post quarter-end. West African expects to exceed the upper end of 2021 guidance of 280 000 oz of gold production at all-in sustaining cost below $800/oz,” said Hyde.