West African Resources Ltd · ASX:WAF
West African Resources — Shareholder Meeting (May 2020)
22 slides from West African Resources's shareholder meeting presentation, May 29, 2020
Slide 1: West African Resources Ltd AGM Presentation
WEST AFRICAN RESOURCES LTD AGM Presentation WEST AFRICA’S NEWEST GOLD PRODUCER 29 May 2020
Slide 2: Important Notice
IMPORTANT NOTICE IMPORTANT NOTICE AND DISCLAIMER COMPETENT PERSONS STATEMENT This presentation contains “forward-looking information” within the meaning of securities legislation, including information relating to Information in this presentation that relates to exploration results, exploration targ
Slide 3: West Africa's Emerging New Gold Producer
WEST AFRICA’S EMERGING NEW GOLD PRODUCER ✓ 2.2Mtpa Sanbrado build and commissioning complete 10 weeks ahead of schedule and US$20m underbudget ✓ Currently processing oxide open-pit and underground development ore, first stoping ore expected in September Quarter 2020 ✓ On target for +300,000 ounces g
Slide 4: Capital Structure and Analyst Coverage
CAPITAL STRUCTURE AND ANALYST COVERAGE ASX: WAF Analyst Coverage2 Total Ordinary Shares on Issue 871.1m Euroz Andrew Clayton Options and performance rights on issue 17.4m Hartleys Mike Millikan Top 20 Shareholders 57% Macquarie Andrew Bowler Cash at 30 April 2020 US$41.6m Sprott Brock Salier Gold at
Slide 5: Why Burkina Faso?
WHY BURKINA FASO? ▪ Underlain by Birimian gold bearing rocks ▪ 1.6 Moz gold production in 2019 ▪ Sanbrado the 14th commercial gold mine in 14 years ▪ Historically stable government and community support for gold mining ▪ Sanbrado located in relatively secure south-central Burkina Faso, away from tro
Slide 6: Experienced Board and Management
6 EXPERIENCED BOARD AND MANAGEMENT BOARD OF DIRECTORS SENIOR MANAGEMENT RICHARD HYDE STEWART FINDLAY MATTHEW WILCOX VINCENT MOREL Executive Chairman & Non-Executive Director Chief Development GM Exploration and Chief Executive Officer Banking & Finance Officer New Projects Founder, Geologist 25 year
Slide 7: Sanbrado Gold Project
SANBRADO GOLD PROJECT May 2020 Project Status 100% COMPLETE Build complete, commissioning complete on schedule for Q2 2020 commercial production7
Slide 8: Sanbrado Gold Project Key Project Metrics
SANBRADO GOLD PROJECT KEY PROJECT METRICS ▪ High-grade UG and open-pit operation with conventional 2.2Mtpa SABC CIL plant ▪ MRE of 3.1 Moz Au 2.4 Moz Au (Indicated) & 0.7 Moz Au (Inferred) ▪ 1.7 Million ounce Probable Reserve Underground: 0.65 Moz at 10.2 g/t gold Open-pits: 1.0 Moz at 1.6 g/t gold
Slide 9: Sanbrado Gold Project M1 South Deposit
SANBRADO GOLD PROJECT M1 SOUTH DEPOSIT ✓Development on schedule and budget ✓2120 level ore development ongoing ✓Grade control ongoing. Results in-line with expectations. Stand out results include: ‐ 13.5m at 133.1 g/t Au ‐ 13m at 64.1 g/t Au ‐ 17.5m at 26.8 g/t Au ‐ 7m at 39.5 g/t Au ‐ 12.4m at 20.5
Slide 10: WAF team on site with first gold shipment
SANBRADO GOLD PROJECT WAF team on site with first gold shipment 4th May 2020 10
Slide 11: Sanbrado Gold Project first gold bars
SANBRADO GOLD PROJECT Clockwise from top left; Danny Kotzee (Construction Manager) and Matthew Wilcox (Chief Development Officer), Lyndon Hopkins (Exec Director & COO) and Richard Hyde (Exec Chairman & CEO), First gold bars, Vince Morel (GM Exploration) and Abdou Guire (Senior Geologist). 11
Slide 12: M1 South Underground
M1 SOUTH UNDERGROUND DEVELOPMENT PROGRESS 1 2 ✓Decline +200m below surface level ✓Total development +2,200m ✓First development ore processed April 2020 ✓First stoping 3 ore expected September Quarter 20204 12
Slide 13: E & S Commitments
SANBRADO GOLD PROJECT E & S COMMITMENTS Environmental and Social ✓ Baseline studies for the ESIA and RAP were undertaken from 2015 to 2018. Environmental and RAP approvals were granted in 2018. WAF management meeting local stakeholders post ✓ Environmental permit was granted in 2018 covering mining
Slide 14: Equipé Sanbrado
EQUIPÉ SANBRADO 600 WORKERS ON SITE 95% BURKINABÉ 5% EXPATRIATE Clockwise from top left: Underground team, CSR dept, Construction team, construction contractors. 14
Slide 15: Toega Acquisition
TOEGA ACQUISITION INCREASE TO MINE LIFE AND PRODUCTION PROFILE ✓WAF to acquire Toega from B2Gold and GAMS for US$45 million in staged payments. ✓Located within trucking distance (14km) of Sanbrado. ✓Existing Inferred Resource is 1.1Moz gold at 2.1 g/t Au, with excellent exploration upside. ✓Toega is
Slide 16: Annual Production – April 2019 DFS + UG Potential
SANBRADO GOLD PROJECT ANNUAL PRODUCTION – APRIL 2019 DFS + UG POTENTIAL AFTER Y6 400,000 ▪ M1 South OP 2 years, M5 OP 10 years 350,000 ▪ M1 South UG 6.5 years, Y1-6 average 100Koz gold ▪ TAN18-DD228: 25m at 15 g/t Au from 862m including 5.5m at 40.4 g/t Au 220m beneath current reserves 300,000 ▪ Dee
Slide 17: Sanbrado Production Update
SANBRADO PRODUCTION UPDATE R A M P I N G U P TO F U L L P R O D U C T I O N Q 3 2 0 2 0 ✓COVID response plan enacted - no material impact to operations ✓Continuous operations since 8th March 2020 ✓Processing of oxide open-pit and underground development ore ✓Production for March 200.3Kt at 1.3 g/t A
Slide 18: 2 Month Cash + Capex Summary
2 MONTH CASH + CAPEX SUMMARY Cash + Gold Summary CAPEX Summary US$M US$M March Gold (4,623 oz) 7.86 March Mine Development Capex -5.87 Cash 49.70 Sanbrado Construction Capex -7.44 Cash + gold 57.56 Sub total Capex -13.31 April Gold (13,644 oz) 23.19 April Mine Development Capex -5.60 Cash 41.57 Sanb
Slide 19: Near-Term Catalysts
NEAR-TERM CATALYSTS RAMPING UP TOWARDS FULL PRODUCTION Q3 2020 Completed build and commissioning Q1 2020 ✓ Commenced underground ore development Q1 2020 ✓ Commence deep resource definition drilling at M1 South Q1 2020 Completed commissioning and first gold pour Q1 2020 ✓ Commercial gold production
Slide 20: Mineral Resources and Reserves – Sanbrado
MINERAL RESOURCES AND RESERVES Cutoff Indicated Resource Inferred Resource Total SANBRADO GOLD (Au g/t) Grade Grade Grade PROJECT MINERAL Tonnes Au Oz Tonnes (Au Au Oz Tonnes Au Oz (Au g/t) (Au g/t) RESOURCES g/t) April 2019 M1 South U/G >180mRL 3 1,000,000 21.9 697,000 300,000 11.2 117,000 1,300,00
Slide 21: Mineral Resources and Reserves – Toega
MINERAL RESOURCES AND RESERVES Cutoff Indicated Resource Inferred Resource Total TOEGA GOLD (Au g/t) Grade Grade Grade PROJECT MINERAL Tonnes Au Oz Tonnes (Au Au Oz Tonnes Au Oz (Au g/t) (Au g/t) RESOURCES g/t) January 8, 2018 Toega O/P 0.6 17,530,000 2.01 1,130,000 17,530,000 2.01 1,130,000 Total 1
Slide 22: West African Resources Ltd
W E S T A F R I C A N R E S O U R C E S LT D A S X : WA F WE S T A F R I C A’ S E M E R G I N G G O L D P R O D U C E R 22 W W W. W E S TA F R I C A N R E S O U R C E S . C O M
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