The West African Resources Ltd (ASX: WAF) share price is surging almost 8% higher this morning after the company announced high grades and extensive visible gold have been intercepted in the deep diamond drilling at its Sanbrado Gold Project in Burkina Faso. At the time of writing, the West African Resources share price is trading at 99 cents, having closed at 92 cents in yesterday’s session.
Details of the gold find
The gold miner says that the deep diamond drilling beneath reserves at its M1 South site has returned high grade results including:
- 6 million ounces at an average grade of 20.5 g/t gold from 1211.5 metres, including 0.5 million at 167 g/t gold
- 6.5 million ounces at an average of 16.1 g/t gold from 1230 metres, including 0.5 million at 124 g/t gold
West African says the intercepts were all made greater than 900 metres below surface, and more than 400 metres beneath current probable ore reserves. This find has strengthened the potential to extend the M1 South underground mine life.
Reporting to be postponed to first-quarter
Commenting on the find, West African executive chairman, Richard Hyde, says that the company’s reporting will be delayed to include the latest find. He said:
The new results are along strike from TAN20-DD235 which returned 7m at 20 g/t gold in Q3 this year. Two drill holes are in progress at 330 metres and 980 metres respectively, and need to be completed and assayed before resources can be updated for M1 South.
Reporting of resources, reserves and the life of mine production profile for Sanbrado originally scheduled for release in Q4 2020, will now be released in Q1 2021 to allow the current drilling program to be completed and any further results to be included.
How did the West African Resources share price perform in 2020
The mining company has poured 45,400 ounces of gold in the three months to the end of September from its flagship Sanbrado project – a 40% increase over the prior quarter.
Earlier this month, West African also announced it has repaid $35 million of its $245 million debt facility to Taurus Funds Management in order to save on interest costs.
The West African Resources share price has increased by more than 120% this year, driven by results from the Sanbrado drilling. The share price reached its 52-week high of $1.23 in October.
West African currently commands a market capitalisation of around $813 million.
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