Gold mining company West African Resources announced Tuesday its intentions to explore collaborative opportunities with Orezone Gold Corporation, a TSX-listed firm, for their mining projects in Burkina Faso.
Located just 14 km apart, Orezone’s Bomboré and West African’s Sanbrado operations collectively possess approximately 11 million ounces of gold resources. Additionally, West African is progressing with the 7.7-million ounce Kiaka gold initiative, which sits 45km south of Sanbrado, with production slated to begin in 2025.
Together, the mines, in-development projects, and exploration lands span a combined area of more than 1,800 km^2. This extensive stretch also includes a 100 km strike of potentially rich greenstone belts and structural formations.
To explore potential synergies, West African revealed to its investors on Tuesday that a memorandum of understanding (MoU) has been drafted. This MoU, if agreed upon, can lead to significant value optimization for all involved parties. Areas of focus in the MoU include grid and renewable energy, thermal back-up power, supply chains, community involvement, corporate social responsibilities, and security measures.
West African CEO, Richard Hyde, emphasized the collaborative spirit of the discussions, noting the goal of cost reductions and optimized investments. He stated, “Our joint efforts aim to enhance shareholder returns and cement the future of gold mining in Burkina Faso.”
Orezone’s president, Patrick Downey, resonated strongly with the perspective presented by Hyde. Emphasizing the significance of the MoU, Downey portrayed it as a pivotal strategy designed not only to elevate the long-term value associated with each mining asset in Burkina Faso but also to bolster active and meaningful engagement with the local communities.
“In an industry landscape that’s increasingly contending with cost escalations, this MoU serves as a beacon, granting us an opportunity to revisit and streamline our existing cost structures, thereby magnifying the potential value returns for our shareholders,” Downey elaborated.
He further accentuated the unwavering commitment shared by both Orezone and West African towards maintaining exemplary safety standards and forging impactful, genuine connections with their workforce, the communities they operate in, and all relevant stakeholders.
