Outstanding results at Mankarga 1 prospect Up to 4g/t Au in auger drilling in parallel zones over 1.5km

Transcription

1 Press Release 18 th June 2015 Outstanding results at Mankarga 1 prspect Up t 4g/t Au in auger drilling in parallel znes ver 1.5km Gld develper (ASX, TSXV: WAF) is excited t annunce utstanding results frm auger drilling at the Mankarga 1 prspect, Tanluka Permit, Burkina Fas. Managing Directr Richard Hyde cmmented: Auger drilling ver the M1 area has returned high-grade results within multiple trends alng strike and parallel t artisanal wrkings and histric drilling. Results cnfirm ur updated gelgical interpretatin and cntract a RC rig has mbilised t site t cmmence immediate drilling. Given the prximity f M1 t the starter prject, psitive results frm fllw-up RC drilling have the ptential t materially upgrade the current Feasibility Study thrugh the additin f higher grade xide tnnes t the mine schedule. Auger drilling at Mankarga 1 (M1) prspect has delivered high-grade results 500m nrthwest f the Mankarga 5 Mineral Resurce (Figure 1). Significant high-grade auger assays, with a peak result f 3,851 ppb Au (3.85g/t Au), were returned frm multiple parallel znes alng strike and parallel with histric RC and diamnd drilling, and artisanal wrkings. Results ccur ver a 1.5km mineralised trend, with ptential indicated in reginal auger drilling fr repeat parallel structures t the west. Results cnfirm an updated interpretatin based n detailed prspect mapping shwing parallel and linking mineralised znes. T date 399 auger hles have been drilled n a 100m by 25m grid ver the M1 prspect. Lines are riented suthwest-nrtheast, with an average depth f 6m. Drilling is cntinuing t the west f M1 ver newly identified gld znes and t the suth ver the M2 prspect. Significant results are presented belw in Table 1 and shwn in Figures 1 and 2. Table 1: Mankarga 1 Significant Results frm Auger Drilling Hle Frm T Int Au ppb Au g/t Dip Azi East Nrth RL TLA TLA TLA TLA TLA TLA TLA TLA TLA Principal Office: 14 Suthburne Street, Scarbrugh WA 6019, Western Australia T: F: E: inf@westafricanresurces.cm ACN:

2 The cmpany is fully funded by Macquarie Bank (ASX, TSXV: 22/12/14) t cmplete a Feasibility Study fr a heap leach starter prject by Q3 f this year, which will incrprate any psitive results frm nging explratin prgrams. Significant results frm histric drilling at Mankarga 1 are shwn in Table 2 belw. Fllw-up RC drilling is imminent and results will be reprted as they are received by the cmpany. Table 2: Mankarga 1 Significant Intercepts Histric Drilling Hle TAN10-RC-10 TAN10-RC-10 TAN10-RC-12 TAN10-RC-23 TAN11-RC-52 TAN12-DD-72 TAN12-DD-73 TAN12-DD-73 TAN12-DD-74 TAN12-DD-83 Frm T Interval Au g/t East Nrth RL Figure 1: Mankarga 1 & 5 Summary Plan Page: 2

3 Figure 2: Mankarga 1 Explratin Summary 2015 PFS Highlights cmpleted an updated Pre-Feasibility Study reprt fr an xide heap leach starter prject n its Mankarga 5 Gld Prject, Burkina Fas in May 2015 (ASX, TSXV: 15/5/15, 29/5/2015). It was prepared in accrdance with the requirements f bth the Australian 2012 JORC Cde and Canadian NI The reprt is filed n SEDAR and n the Cmpany s website. A summary f the base case is stated belw assuming a 100% prject at a gld price f $1,300/z. All amunts are in US dllars. Prductin f 69,000z pa fr first 3 years, 49,000z pa fr life f mine, 7 year life f mine Cash csts $428/z fr 3 years, $635/z life f mine All-in cash csts f $538/z fr 3 years, $749/z life f mine Pre-tax IRR f 63% with 14-mnth payback, pst-tax IRR f 50% with 16-mnth payback Page: 3

4 Pre-tax cash flw f $146m, pst-tax cash flw f $118m after initial and sustaining capital csts Pre-tax NPV5% f $117m, Pst-tax NPV5% f $86m Prbable Ore reserve f 440,000z, life f mine strip rati 2:1 Ptential t upgrade in-pit Inferred Resurces currently treated as waste in mining schedule Nearby drill ready xide targets with ptential t add t the base case Mankarga5 April 2015 Resurce Cut-ff Indicated Resurce Inferred Resurce (Au g/t) Tnnes Grade Au Oz Tnnes Grade Au Oz (Au g/t) (Au g/t) Oxide 0.5 7,200, , , , ,100, , , ,000 Transitinal 0.5 2,300, , , , ,000, , , ,000 Fresh 0.5 9,500, ,000 39,100, ,320, ,200, ,000 14,800, ,000 Ttal ,000, ,000 40,400, ,350, ,400, ,000 15,200, ,000 Mankarga5 May 2015 Ore Reserve Strngly Mderately Transitin Fresh Ttal Oxidised Oxidised Categry Mt Au g/t Au Mt Au Au Mt Au Au Mt Au Au Mt Au Au kz g/t kz g/t kz g/t kz g/t kz Prbable Cautinary Nte: Mineral Resurces that are nt mineral reserves d nt have demnstrated ecnmic viability. Mineral resurce estimates d nt accunt fr mineability, selectivity, mining lss and dilutin. These mineral resurce estimates include inferred mineral resurces that are nrmally cnsidered t speculative gelgically t have ecnmic cnsideratins applied t them that wuld enable them t be categrized as mineral reserves. There is als n certainty that these inferred mineral resurces will be cnverted t measured and indicated categries thrugh further drilling, r int mineral reserves, nce ecnmic cnsideratins are applied. Prductin targets fr the prpsed heap leach starter prject referred t in this annuncement were first released t the ASX and TSXV n 23 February They are preliminary and there is n certainty that the prductin targets, r the frecast financial infrmatin derived frm the prductin targets, will be realised. All material assumptins underpinning prductin targets r frecast financial infrmatin derived frm prductin targets cntinue t apply and have nt materially changed. Page: 4

5 Cmpetent Persn s Statement Infrmatin in this annuncement that relates t explratin results, explratin targets r mineral resurces is based n infrmatin cmpiled by Mr Richard Hyde, a Directr, wh is a Member f The Australian Institute f Mining and Metallurgy and Australian Institute f Gescientists. Mr Hyde has sufficient experience which is relevant t the style f mineralisatin and type f depsit under cnsideratin and t the activity which he is undertaking t qualify as a Cmpetent Persn as defined in the 2012 Editin f the Australasian Cde fr Reprting f Explratin Results, Mineral Resurces and Ore Reserves (the JORC Cde) and a Qualified Persn under Natinal Instrument Mr Hyde cnsents t the inclusin in this annuncement f the statements based n his infrmatin in the frm and cntext in which they appear. Frward Lking Infrmatin This news release cntains frward-lking infrmatin within the meaning f applicable Canadian and Australian securities legislatin, including infrmatin relating t West African's future financial r perating perfrmance may be deemed frward lking. All statements in this news release, ther than statements f histrical fact, that address events r develpments that West African expects t ccur, are frward-lking statements. Frward-lking statements are statements that are nt histrical facts and are generally, but nt always, identified by the wrds expects, des nt expect, plans, anticipates, des nt anticipate, believes, intends, estimates, prjects, ptential, scheduled, frecast, budget and similar expressins, r that events r cnditins will, wuld, may, culd, shuld r might ccur. All such frward-lking statements are based n the pinins and estimates f the relevant management as f the date such statements are made and are subject t imprtant risk factrs and uncertainties, many f which are beynd West African s ability t cntrl r predict. Frward-lking statements are necessarily based n estimates and assumptins that are inherently subject t knwn and unknwn risks, uncertainties and ther factrs that may cause actual results, level f activity, perfrmance r achievements t be materially different frm thse expressed r implied by such frward-lking statements. In the case f West African, these facts include their anticipated peratins in future perids, planned explratin and develpment f its prperties, and plans related t its business and ther matters that may ccur in the future. This infrmatin relates t analyses and ther infrmatin that is based n expectatins f future perfrmance and planned wrk prgrams. Statements cncerning mineral resurce estimates may als be deemed t cnstitute frward-lking infrmatin t the extent that they invlve estimates f the mineralizatin that will be encuntered if a mineral prperty is develped. Frward-lking infrmatin is subject t a variety f knwn and unknwn risks, uncertainties and ther factrs which culd cause actual events r results t differ frm thse expressed r implied by the frward-lking infrmatin, including, withut limitatin: explratin hazards and risks; risks related t explratin and develpment f natural resurce prperties; uncertainty in West African s ability t btain funding; gld price fluctuatins; recent market events and cnditins; risks related t the uncertainty f mineral resurce calculatins and the inclusin f inferred mineral resurces in ecnmic estimatin; risks related t gvernmental regulatins; risks related t btaining necessary licenses and permits; risks related t their business being subject t envirnmental laws and regulatins; risks related t their mineral prperties being subject t prir unregistered agreements, transfers, r claims and ther defects in title; risks relating t cmpetitin frm larger cmpanies with greater financial and technical resurces; risks relating t the inability t meet financial bligatins under agreements t which they are a party; ability t recruit and retain qualified persnnel; and risks related t their directrs and fficers becming assciated with ther natural resurce cmpanies which may give rise t cnflicts f interests. This list is nt exhaustive f the factrs that may affect West African s frward-lking infrmatin. Shuld ne r mre f these risks and uncertainties materialize, r shuld underlying assumptins prve incrrect, actual results may vary materially frm thse described in the frward-lking infrmatin. West African s frward-lking infrmatin is based n the reasnable beliefs, expectatins and pinins f their respective management n the date the statements are made and West African des nt assume any bligatin t update frward lking infrmatin if circumstances r management s beliefs, expectatins r pinins change, except as required by law. Fr the reasns set frth abve, investrs shuld nt place undue reliance n frward-lking infrmatin. Fr a cmplete discussin with respect t West African, please refer t West African s financial statements and related MD&A, all f which are filed n SEDAR at Neither TSX Venture Exchange nr its Regulatin Services Prvider (as that term is defined in the plicies f the TSX Venture Exchange) accepts respnsibility fr the adequacy r accuracy f this release. Page: 5

6 Sectin 1: Sampling Techniques and Data Criteria JORC Cde Explanatin Cmmentary Sampling Technique Drilling Drill Sample Recvery Lgging Sub-Sampling Technique and Sample Preparatin Quality f Assay Data and Labratry Tests Nature and quality f sampling (e.g. cut channels, randm chips, r specific specialised industry standard measurement tls apprpriate t the minerals under investigatin, such as dwnhle gamma sndes, r handheld XRF instruments, etc.). These examples shuld nt be taken as limiting the brad meaning f sampling Include reference t measures taken t ensure sample representivity and the apprpriate calibratin f any measurement tls r systems used. Aspects f the determinatin f mineralisatin that are Material t the Public Reprt. In cases where industry standard wrk has been dne this wuld be relatively simple (e.g. reverse circulatin drilling was used t btain 1 m samples frm which 3 kg was pulverised t prduce a 30 g charge fr fire assay ). In ther cases mre explanatin may be required, such as where there is carse gld that has inherent sampling prblems. Unusual cmmdities r mineralisatin types (e.g. submarine ndules) may warrant disclsure f detailed infrmatin. Drill type (e.g. cre, reverse circulatin, pen- hle hammer, rtary air blast, auger, Bangka, snic, etc.) and details (e.g. cre diameter, triple r standard tube, depth f diamnd tails, face- sampling bit r ther type, whether cre is riented and if s, by what methd, etc.). Methd f recrding and assessing cre and chip sample recveries and results assessed. Measures taken t maximise sample recvery and ensure representative nature f the samples. Whether a relatinship exists between sample recvery and grade and whether sample bias may have ccurred due t preferential lss/gain f fine/carse material. Whether cre and chip samples have been gelgically and getechnical lgged t a level f detail t supprt apprpriate Mineral Resurce estimatin, mining studies and metallurgical studies. Whether lgging is qualitative r quantitative in nature. Cre (r cstean/trench, channel, etc.) phtgraphy. The ttal length and percentage f the relevant intersectins lgged. If cre, whether cut r sawn and whether quarter, half r all cre taken. If nn-cre, whether riffled, tube sampled, rtary split, etc. and whether sampled wet r dry. Fr all sample types, the nature, quality and apprpriateness f the sample preparatin technique. Quality cntrl prcedures adpted fr all sub-sampling stages t maximise representivity f samples. Measures taken t ensure that the sampling is representative f the in situ material cllected, including fr instance results fr field duplicate/secnd-half sampling. Whether sample sizes are apprpriate t the grain size f the material being sampled. The nature, quality and apprpriateness f the assaying and labratry prcedures used and whether the technique is cnsidered partial r ttal. Fr gephysical tls, spectrmeters, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and mdel, reading times, calibratins factrs applied and their derivatin, etc. Nature f quality cntrl prcedures adpted (e.g. standards, blanks, duplicates, external labratry checks) and whether acceptable levels f accuracy (i.e. lack f bias) and precisin have been established. The Mankarga 1 area has been drilled by auger techniques. The drill spacing is being in-filled t a nminal 100m x 25m grid spacing n nrthwestsutheast lines. Samples are taken frm a 3m cmpsite at the end f hle. Hle depths range frm 1 t 11m vertical depth. Samples were despatched t BIGS in Ouagadugu fr sample preparatin, where they were crushed and dried t prduce a sub sample fr 0.5kg bttle rll analysis with AAS finish. Auger drilling was cmpleted fr gechemical samples. Hles were vertical and drilled between 1m and 11m, with an average f 5.5m. Sample recveries are nt applicable t auger drilling. Samples are nly used fr explratin purpses and are nt used in resurce estimatin. Lgging f auger chips are recrded lithlgy, mineralgy, mineralisatin, weathering, alteratin, clur and ther features f the samples. Auger samples were cllected n the rig using a scp. All samples were dry. The sample preparatin fr all samples fllws industry best practice. BIGS in Ouagadugu fr sample preparatin, where they were crushed and dried sub sample fr analysis. Field QC prcedures invlve the use f certified reference material as assay standards and blanks. The insertin rate f these averaged 1:20. The labratry used a bttle rll fr with an AAS finish fr gld analysis. N gephysical tls were used t determine any element cncentratins used in this reprt. Labratry QA/QC invlves the use f internal lab standards using certified reference material, blanks, splits and duplicates as part f the in huse prcedures. Certified reference materials, having a gd range f values, were inserted blindly and randmly. Results highlight that sample assay values are accurate and that cntaminatin has been cntained. Repeat r duplicate analysis fr samples shws that the precisin f samples is within acceptable limits. Sample preparatin cnducted and fire assay perfrmed by BIGS SARL. Page: 6

7 Verificatin f Sampling and Assaying Lcatin f Data pints Data Spacing and Distributin Orientatin f Data in Relatin t Gelgical Structure The verificatin f significant intersectins by either independent r alternative cmpany persnnel. The use f twinned hles The verificatin f significant intersectins by either independent r alternative cmpany persnnel. Discuss any adjustment t assay data Accuracy and quality f surveys used t lcate drill hles (cllar and dwn-hle surveys), trenches, mine wrkings and ther lcatins used in Mineral Resurce estimatin. Specificatin f the grid system used Quality and adequacy f tpgraphic cntrl Data spacing fr reprting f Explratin Results Whether the data spacing and distributin is sufficient t establish the degree f gelgical and grade cntinuity apprpriate fr the Mineral Resurce and Ore Reserve estimatin prcedure(s) and classificatins applied. Whether sample cmpsiting has been applied Whether the rientatin f sampling achieves unbiased sampling f pssible structures and the extent t which this is knwn, cnsidering the depsit type. If the relatinship between the drilling rientatin and the rientatin f key mineralised structures is cnsidered t have intrduced a sampling bias, this shuld be assessed and reprted if material. Sample Security The measures taken t ensure sample security Audits r reviews WAF s QP R. Hyde has verified significant results frm auger drilling. Primary data was cllected using a set f cmpany standard ExcelTM templates n TughbkTM laptp cmputers using lkup cdes. The infrmatin was validated n-site by the Cmpany s database technicians and then merged and validated int a final Access TM database by the cmpany s database manager. All drill hles have been lcated by DGPS in UTM grid WGS84 Z30N. N dh surveys are take fr auger drilling. DGPS was used fr tpgraphic cntrl. The nminal drill hle spacing is 25m (nrtheast) by 100m (nrthwest) which is apprpriate fr explratin purpses. Nt relevant. Chain f custdy is managed by WAF Samples are stred n site and delivered by WAF persnnel t BIGS Ouagadugu fr sample preparatin. Whilst in strage, they are kept under guard in a lcked yard. Tracking sheets are used track the prgress f batches f samples The results f any audits r reviews f sampling techniques and data. WAF persnnel and cnsultants have cmpleted numerus site visits and data reviews since acquiring the prject in N material issues were nted. A technical reprts are lcated n WAF's website. Page: 7

8 Sectin 2 Reprting f Explratin Results Criteria JORC Cde Explanatin Cmmentary Mineral Tenement and Land Tenure Status Explratin Dne by Other Parties Gelgy Drill hle Infrmatin Type, reference name/number, lcatin and wnership including agreements r material issues with third parties such as jint ventures, partnerships, verriding ryalties, native title interests, histrical sites, wilderness r natinal park and envirnmental settings. The security f the tenure held at the time f reprting alng with any knwn impediments t btaining a licence t perate in the area. Acknwledgment and appraisal f explratin by ther parties. Depsit type, gelgical setting and style f mineralisatin. A summary f all infrmatin material t the understanding f the explratin results including a tabulatin f the fllwing infrmatin fr all Material drill hles: easting and nrthing f the drill hle cllar elevatin r RL (Reduced Level elevatin abve sea level in metres) f the drill hle cllar dip and azimuth f the hle dwn hle length and interceptin depth hle length. If the exclusin f this infrmatin is justified n the basis that the infrmatin is nt Material and this exclusin des nt detract frm the understanding f the reprt, the Cmpetent Persn shuld clearly explain why this is the case. The Bulsa Prject tenements cvers ver 3,700km2, granting the hlders the right t explre fr gld. The tenements have been acquired by either direct grant t WAF r its subsidiaries r by cntractual agreements with tenement hlders. Apart frm the Tanluka Agreement where Tanluka SARL hlds a 90% interest, all ther vendr agreements prvide WAF with the right t btain an ultimate interest f 100%. All licences, permits and claims are granted fr gld. All fees have been paid, and the permits are valid and up t date with the Burkinabe authrities. The payment f grss prductin ryalties are prvided fr by the Mining Cde and the amunt f ryalty t be paid fr ranges frm 3% (<US$1000), 4% ($ ) and 5% (>$1300). Very little explratin has been carried ut ver greater prject the tenement prir t WAF's invlvement which cmmenced in 2008, with the exceptin f the Tanluka Permit. The area cmprising the Tanluka Permit has been held by Channel Resurces Ltd since the early 1990's. Wrk recmmenced in earnest n the Tanluka Permit in WAF acquired Channel Resurces Ltd n January 17th Available histric recrds and data were reviewed by bth WAF during Due Diligence prir t the acquisitin. The Bulsa Prject straddles sme 70km strike length f the Manga-Sebba greenstne belt, which bifurcates and trends nrtheast and east-nrtheast respectively frm sutherncentral Burkina Fas int Niger ver sme 450km. The suth-eastern prtin f the prject area cvers the suthern extensin f the Fada N Gurma Belt. Lithlgies cmprise vlcan-plutnic bdies including amphiblised basalts with amphiblschists, andesites and basalts, rhylites and rhydacites, brecciated tuffs, and gabbric bdies including pyrxenite and serpentinite. Gld mineralisatin in the prject area is mesthermal rgenic in rigin and structurally cntrlled. The prject als cntains shear hsted prphyry related cpper-gldmlybdenum mineralisatin n the Sartenga Permit which is believed t be unique in West Africa." Nt relevant fr auger drilling as hles are generally very shrt and give an indicatin f mineralisatin at depth and will be fllwed-up with RC and diamnd drilling in due curse. Nne f the infrmatin in this release will be used t cmpile a Mineral Resurce. Page: 8

9 Data aggregatin methds Relatinship between mineralisatin widths and intercept lengths Diagrams In reprting Explratin Results, weighting averaging techniques, maximum and/r minimum grade truncatins (e.g. cutting f high grades) and cut-ff grades are usually Material and shuld be stated. Where aggregate intercepts incrprate shrt lengths f high grade results and lnger lengths f lw grade results, the prcedure used fr such aggregatin shuld be stated and sme typical examples f such aggregatins shuld be shwn in detail. The assumptins used fr any reprting f metal equivalent values shuld be clearly stated. These relatinships are particularly imprtant in the reprting f Explratin Results. If the gemetry f the mineralisatin with respect t the drill hle angle is knwn, its nature shuld be reprted. If it is nt knwn and nly the dwn hle lengths are reprted, there shuld be a clear statement t this effect (e.g. dwn hle length, true width nt knwn ). Apprpriate maps and sectins (with scales) and tabulatins f intercepts shuld be included fr any significant discvery being reprted These shuld include, but nt be limited t a plan view f drill hle cllar lcatins and apprpriate sectinal views. Balanced reprting Where cmprehensive reprting f all Explratin Results is nt practicable, representative reprting f bth lw and high grades and/r widths shuld be practiced t avid misleading reprting f Explratin Results. Other substantive explratin data Further wrk Other explratin data, if meaningful and material, shuld be reprted including (but nt limited t): gelgical bservatins; gephysical survey results; gechemical survey results; bulk samples size and methd f treatment; metallurgical test results; bulk density, grundwater, getechnical and rck characteristics; ptential deleterius r cntaminating substances. The nature and scale f planned further wrk (e.g. tests fr lateral extensins r depth extensins r large-scale step-ut drilling). Diagrams clearly highlighting the areas f pssible extensins, including the main gelgical interpretatins and future drilling areas, prvided this infrmatin is nt cmmercially sensitive. All samples represent a 3m end f hle cmpsite, where pssible. The rientatin f the mineralised zne has been inferred frm gephysical and gelgical interpretatin. The apprpriate plans and sectins have been included in the bdy f this dcument. Nt applicable t reprting f auger results. Preliminary metallurgical test wrk has been cmpleted, with excellent results. Gld recveries exceed 95% frm xide bttle rll tests, exceed 92% fr sulphide bttle rll tests and a significant prprtin f the gld is recverable by gravity cncentratin. Additinal metallurgical test wrk is being cmpleted. Fllw-up drilling is planned and is nging, aimed at defining the surce f the anmalies discussed in this reprt. A figure shwing prpsed wrk prgrams is included in the bdy f this reprt. Page: 9