West African Resources, an ASX-listed gold mining company operating without hedging strategies, has reported a commendable performance in the first quarter of 2024, with its Sanbrado gold operations yielding 56,595 ounces of gold. This production outcome mirrors the figures recorded in the concluding quarter of 2023, signifying consistent operational efficiency. The company achieved this production level by milling 844,000 tonnes of ore, characterized by a head grade of 2.2 grams per tonne (g/t) and a remarkable recovery rate of 93.9%.
The detailed production figures reveal a significant increase in underground mined ounces, which surged by 22% quarter-on-quarter. Specifically, the M1 South area contributed 105,000 tonnes of ore, averaging a high grade of 8.1 g/t, culminating in the production of 27,484 ounces of gold. On the contrary, open-pit mining activities witnessed a sharp decline, with production dropping by 59% compared to the previous quarter. This reduction was anticipated, stemming from the completion of mining activities at the M5 South open-pit, which produced 555,000 tonnes of ore at a lower grade of 1.2 g/t, yielding 21,941 ounces of gold.
The company also reported a decrease in contained gold within its ore stockpiles, which fell by 10,823 ounces over the quarter. Despite this reduction in stockpiled resources, West African Resources maintained robust sales figures, selling 49,509 ounces of gold at an impressive average price of $2,078 per ounce. Furthermore, the end of the quarter saw an increase in bullion awaiting settlement, which rose by 8,982 ounces to reach a total of 12,126 ounces.
CEO and executive chairperson Richard Hyde expressed satisfaction with the quarter’s outcomes, highlighting the Sanbrado operation’s stable performance and the precise alignment of the high-grade ore from the M1 South underground section with the company’s reserve model. This operational success places West African Resources on a solid path to achieving its annual production guidance, which projects gold production figures ranging between 190,000 to 210,000 ounces at an all-in sustaining cost of less than $1,300 per ounce.
West African Resources’ first-quarter achievements are reflective of its strategic focus on optimizing high-grade underground operations while managing the expected tapering off of production from its open-pit ventures. The company’s ability to maintain steady production levels amidst these operational shifts demonstrates its adeptness in navigating the complexities of gold mining and its commitment to maximizing shareholder value through efficient resource management. With the continued performance of the Sanbrado gold operations and the strategic execution of its mine plan, West African Resources is well-positioned to sustain its contribution to the global gold market and reinforce its standing as a key player in the West African mining sector.
Source: Mining Weekly
