ASX-listed West African Resources’ Sanbrado gold operations, in Burkina Faso, delivered another solid quarter of low-cost gold production, and the company is on track to achieve the upper end of its full-year guidance of 190 000 oz to 210 000 oz of gold at an all-in sustaining cost (AISC) of less than $1 300/oz, executive chairperson Richard Hyde says in a quarterly report.

He adds that construction of the Kiaka gold project, in Burkina Faso, remains on track for first gold to be poured in the third quarter of 2025, when West African will become a 400 000 oz/y-plus gold producer.

“We are pleased with the updated ore reserves and ten-year production target released post quarter showing West African’s gold production is expected to average 480 000 oz/y from 2026 to 2031,” Hyde highlights.

“With the final $100-million drawn under the Coris-Sprott loan facility and completion of the A$150-million share placement post quarter, West African has secured the funding needed to capture the efficiency improvements and lower risks of the new owner-mining strategy for Kiaka,” he adds.

The construction of Kiaka is progressing on schedule and budget, with A$125-million capital expenditure spent in the period under review.

High-grade results were recorded from diamond drilling at the M1 South northern shoot.

Gold production for the quarter was 51 049 oz at an AISC of $1 158/oz.

Unhedged gold sales were 52 445 oz at an average price of $2 314/oz.

Cash flow from operating activities was A$75-million after A$13-million of income tax payments.

Half-year gold production was 107 644 oz at an AISC of $1 223/oz, and the company is on track for 2024 unhedged gold production guidance.

West African had a A$425-million cash balance and A$39-million unsold gold bullion at period end.

Post quarter-end, West African released an updated Kiaka feasibility study; and updated ore reserves; and a ten-year production target; and received A$150-million (before costs) from a share placement

Next quarter objectives are to report drilling results from programmes at M1 South (main) and Kiaka grade control; and maintain Kiaka construction and operational readiness on schedule and budget.

West African reports that there were no significant social, health or safety incidents during the period.