KEY POINTS
- West African aims for 500,000-ounce gold output by 2029.
- Kiaka mine ramps up, while Sanbrado stays strong.
- Exploration drilling supports long-term production growth.
West African Resources Ltd. plans to become a 500,000-ounce-a-year gold producer by 2029, supported by its two key operations in Burkina Faso—Sanbrado and Kiaka—and a heavy investment in exploration drilling.
CEO Richard Hyde, speaking at the Diggers & Dealers conference in Kalgoorlie, said the company’s immediate focus is on bedding down projects, paying off debt, and unlocking more value from its current portfolio before pursuing new growth options.
“We need to make as much money as we can and pay down debt,” Hyde told delegates. The miner currently carries about $250 million in debt, which Hyde called “not a lot” given its size and cash flow outlook.
Long-term output growth
The company recently poured its first gold at Kiaka, its second operating mine, which will ramp up to 250,000 ounces per year at its nameplate capacity.
Combined with Sanbrado, expected to peak at 300,000 ounces annually, West African Resources could hit nearly 570,000 ounces in 2029 before stabilizing at 500,000 ounces.
A newly released 10-year production outlook projects 4.8 million ounces over the next decade, with multiple years surpassing the half-million mark.
Exploration drilling targets major ore extensions
To sustain that growth, West African is running a 200,000-meter drilling program over two years using its rigs. Hyde cited strong intercepts at M1 South, including 44 meters at 25.4 g/t and 21.5 meters at 24 g/t, calling it “a very attractive orebody.”
The miner has also accelerated underground planning at M5 South and the Toega deposit, adding more depth to its life-of-mine strategy.
Kiaka ramps up despite jurisdictional risk
Despite political volatility in Burkina Faso, including two coups since 2021, West African has delivered Kiaka ahead of schedule and under budget. The mine is currently running at 50 percent throughput while awaiting grid power connection later this quarter.
West Africa has injected more than $350 million into Burkina Faso’s economy since 2020, employs 93 percent of the local workforce, and remains unhedged with 6.5 million ounces in reserves and 12.2 million in resources.
“We believe we’re the best mine builders in the world,” Hyde said, adding that the company’s track record of meeting or beating guidance underscores its operational discipline.