West African Resources (ASX:WAF, WAF.V) has announced it acquired a second-hand heap leach plant which will be used to treat the ore at its Boulsa project in Burkina Faso (which was greatly expanded after West African Resources acquired fellow explorer Channel Resources last year). The plant will be placed at the Mankarga 5 prospect which was being explored by Channel which resulted in a resource estimate of 1 million ounces at 1g/t of which 210,000 ounces are oxides and would be amenable to heap leaching.
West African is expecting to release a preliminary economic assessment in the first half of this year, but is confident the study will support a scenario wherein West African Resources ramps up its production to 50,000 ounces of gold before the end of 2016. If the PEA is positive, West African will skip the PFS-stage and move immediately ahead with a feasibility study whilst applying for a mining license.
As the company has a market capitalization of A$41M, WAF isn’t exactly trading very cheap right now, but we’ll keep a close eye on its developments as its second project which is a copper-gold-molybdenum-silver project also has a lot of merit.
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Disclosure: The author holds no position in West African Resources. Please see our disclaimer for current positions.
