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Why the West African Resources Ltd share price rocketed 27% today

One of the biggest movers on the market today has been the West African Resources Ltd (ASX: WAF) share price.

In morning trade it is up 27% to 37.5 cents.

What happened?

As well as getting a lift from a rise in the gold price overnight, the gold exploration company quite literally struck gold this morning.

According to an announcement, drilling at its wholly-owned Sanbrado Gold Project in Burkino Faso revealed promising results.

High-grade diamond drilling results from its M1 deposit hit 1.6 kilograms of gold per tonne. This means that five out of six diamond holes have now hit extremely high grades over significant widths.

Management believes this will add to the resource base and have a material impact on project economics.

Should you invest?

This is undoubtedly great news for West African Resources and its shareholders and I can’t say I’m surprised to see its shares rally.

I believe the results demonstrate the significant potential of the Sanbrado Gold Project, which could make it a very attractive acquisition option for larger miners with exposure to Africa like Resolute Mining Limited (ASX: RSG) and Newcrest Mining Limited (ASX: NCM).

But it is still early days and there is a lot of work ahead. Fortunately the miner is well-funded and should be able to complete this work unhindered.

For now though, I will be keeping West African Resources on my watchlist.

In the meantime I think these exciting growth shares are great options and ready for an investment today.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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