West African Resources Ltd · ASX:WAF
West African Resources — Investor Presentation (February 2018)
24 slides from West African Resources's investor presentation, Feb 6, 2018
Slide 1: 121 Presentation Cape Town
For personal use only 121 Presentation C a p e To w n February 2018
Slide 2: Important Notice
IMPORTANT NOTICE For personal use only IMPORTANT NOTICE AND DISCLAIMER information as the estimation involves subjective judgments about many relevant factors. Mineral resource estimates This presentation is confidential to West African Resources Limited (“WAF”,, “West African” or the “Company”) and
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS Sanbrado Gold Project redefined by transformational exploration success For personal use only HIGH-GRADE Extreme grades at M1 growing at depth, large under-explored gold system at M5 TIER 1 PROJECT Over 2.1Moz Indicated Resources with significant upside LOW COST, High g
Slide 4: Sanbrado: A High Grade Gold Project
SANBRADO GOLD PROJECT – BURKINA FASO SANBRADO: A HIGH GRADE GOLD PROJECT For personal use only Recent transformational exploration success has underpinned a planned CIL development High-grade discovery March 2016: TAN17-DD111: 21m at 53.13 g/t Au from 408.5m including 0.5m at 1,613.41 g/t Au TAN
Slide 5: Corporate Overview
CORPORATE OVERVIEW For personal use only ASX & TSX-V: WAF SHARE PRICE (ASX) Total Ordinary Shares on Issue 578.7m 0.50 20 Volume (RHS) Options on issue 20.0m Price 18 0.45 Top 20 Shareholders 56% 16 Cash (31 December 2017) A$21m 0.40 14 Market Capitalisation (at A$0.43/share) A$249m Volume (m shares
Slide 6: Project Timeline
PROJECT TIMELINE For personal use only Jan: WAF acquires Channel Jan: Drilling at M1 North Jan: WAF awarded Jan: High grade • Detailed design and Resources and commences intersects 16m at 5.3g/t mining permit intersections commencement of $1600 work at Mankarga 5 Feb: M1 South high grade Feb: Sanbra
Slide 7: Experienced Board & Management
EXPERIENCED BOARD & MANAGEMENT For personal use only BOARD OF DIRECTORS RICHARD HYDE MARK CONNELLY SIMON STORM Founder, Managing Director & CEO Non-Exec Chairman Non-Exec Director Geologist with 20 years of experience in Director with over 27 years experience in Chartered accountant with more than t
Slide 8: Sanbrado Gold Project
For personal use only SANBRADO GOLD PROJECT 8
Slide 9: Sanbrado Gold Project
SANBRADO GOLD PROJECT For personal use only Located in central Burkina Faso 110km, 1.5 hrs southeast of Ouagadougou Excellent infrastructure ‒ 20km from sealed highway ‒ All weather access road ‒ Excellent mobile phone coverage ‒ LV grid power on site ‒ 15km from HV grid power ‒ 18km from stab
Slide 10: Sanbrado Gold Project Overview
SANBRADO GOLD PROJECT OVERVIEW For personal use only Project resource of 2.1Moz (Ind) & 0.7Moz (Inf) Resources include over 200,000m of DD & RC All deposits within 3km Conventional open-pit and underground mining Conventional CIL processing methods – >91% recovery at 90 μm grind Still ad
Slide 11: M1 South High Grade Discovery
M1 SOUTH HIGH GRADE DISCOVERY For personal use only At least 3 high grade shoots across 350m strike Southern shoot best developed, up to 100m strike, up to 45m true width, drilled to 500m Fertile system, open at depth Extreme grades up to 1.6kg/t >1,500oz per vertical metre from surface to
Slide 12: Recent M1 South Drilling Results
RECENT M1 SOUTH DRILLING RESULTS For personal use only DRILLING NOW TARGETING +550M VERTICAL: TAN17-DD104 11m at 20.4g/t Au from 286m, including 2m at 101.7 g/t Au TAN17-DD107 8.5m at 38.0 g/t Au from 296.5m, including 1m at 260.9 g/t Au TAN17-DD109 29.5m at 20.7 g/t Au from 349.5m, including 1.5m a
Slide 13: M1 South Mineral Resource
M1 SOUTH MINERAL RESOURCE For personal use only Independently prepared resource and mining studies Resource modelling includes OK and MIK estimation OK high grade domains, hard boundaries, 250g/t Au top cut MIK low grade domains, enveloping high grade zones Depth of mineralisation from 170
Slide 14: M5 Tonnes of Options, Open at Depth
M5 TONNES OF OPTIONS, OPEN AT DEPTH For personal use only 3km strike, up to 300m true width, open at more than 300m depth, low strip ratio 35.9Mt at 1.3 g/t Au for 1,461,000 ounces of gold (Indicated) and 12.0Mt at 1.1 g/t Au for 412,000 ounces of gold (Inferred) Over 10Mt oxide and transition
Slide 15: M5 2017 Drilling Results
M5 2017 DRILLING RESULTS For personal use only DRILLING NOW TARGETING +400M VERTICAL: TAN17-DD094 29m at 4.96g/t Au from 128m, including 9m at 10.6g/t Au TAN17-DD097A 15m at 5.03g/t Au from 256m, including 2m at 27.3g/t Au TAN17-DD100 20m at 3.34g/t Au from 170m, including 2m at 16.5g/t Au TAN17-DD1
Slide 16: Resource Growth 2014-2018
RESOURCE GROWTH 2014-2018 For personal use only “VALUE CREATION THROUGH THE DRILL BIT” 2,500 1.7 2,000 2,022 1.5 grams per tonne 1,500 1.4 koz Au 1,332 1.3 1.3 1,000 980 1.2 736 500 437 0 1.0 Jul 2014 Feb 2015 Aug 2016 Feb 2017 Oct 2017 Indicated Resource (koz) Indicated Grade 16
Slide 17: 2017 vs 2018 Feasibility Study Overview
2017 VS 2018 FEASIBILITY STUDY OVERVIEW For personal use only 2017 FEASIBILITY STUDY +150Kozpa over first 3yrs with AISC of US$708/oz, 90Kozpa over 9 years with US$759/oz at 91% LOM recoveries utilising single stage SAG milling from US$131m capex 2018 FEASIBILITY STUDY SNAPSHOT Increased production
Slide 18: Exploration Potential & Upside Areas
EXPLORATION POTENTIAL & UPSIDE AREAS For personal use only 1 NEAR MINE EXPLORATION 2 SURROUNDING EXPLORATION <5km from Sanbrado <30km from Sanbrado Continue to chase M1 South below 500m depth, deposit 10km geochem Moktedu Trend – 28m at 9.2g/t Au from surface Goudré rock chips +60 g/t Au has m
Slide 19: Near Term Milestones
NEAR TERM MILESTONES For personal use only CURRENT DEVELOPMENT PLAN FOR 2018 AND BEYOND 2017 2018 2019 2020 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Resource upgrade Further resource / reserve and definition drilling Updated mining and environmental permits Updated DFS incorporating open pits & un
Slide 20: Milestones 2018 and Beyond
MILESTONES For personal use only 2018 and beyond Continue aggressive drilling programs - +60,000m per annum Commence +800m holes at M1 and M5 – results Q4 2017 Enhance metallurgy - review mill design and further test work to improve current +90% recoveries Update permitting - mining and envi
Slide 21: Appendix: Additional Slides
For personal use only APPENDIX: ADDITIONAL SLIDES
Slide 22: Mineral Resources
MINERAL RESOURCES For personal use only SANBRADO GOLD PROJECT MINERAL RESOURCES | February & October 2017 INDICATED RESOURCES INFERRED RESOURCES Cutoff (Au g/t) Grade Grade Tonnes Au Oz Tonnes Au Oz (Au g/t) (Au g/t) O/P <120m 0.5 730,000 6.8 161,000 70,000 5.1 11,000 M1 South U/G >120m 3.0 470,000
Slide 23: Overview of the Open Pit Feasibility Study
OVERVIEW OF THE OPEN PIT FEASIBILITY STUDY For personal use only SANBRADO OPEN PIT FEASIBILITY STUDY – PRODUCTION AND FINANCIAL HIGHLIGHTS Base case is stated on a 100% basis and a gold price of $1,200/oz (all amounts in US$) Production Y1-3 Average of 150,000oz/yr Production LOM Average of 93,000oz
Slide 24: West African Resources Ltd - ASX
West African Resources Ltd - ASX TSXV: WAF For personal use only
West African Resources — Investor Presentation (February 2018) on 6ix