West African Resources Ltd · ASX:WAF
West African Resources — Investor Presentation (December 2019)
26 slides from West African Resources's investor presentation, Dec 4, 2019
Slide 1: West African Resources Ltd - Macquarie Forum 2019
WEST AFRICAN RESOURCES LTD M a cq u a r ie F o r u m 2 0 1 9 4 th D e c e m b e r 2 0 1 9 WEST AFRICA’S EMERGING GOLD PRODUCER
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 African Resources 18 Month Recap
WEST AFRICAN RESOURCES 18 MONTH RECAP June- Dec 18 November 2018 November 2018 January 2019 Banking process 25m at 15g/t Au Awarded engineering resulted in Taurus incl. 5.5m at 40 g/t contract to Lycopodium Start of major US$200m debt at M1S 1km hole construction 200m beneath Awarded underground wor
Slide 4: West Africa's Emerging New Gold Producer
WEST AFRICA’S EMERGING NEW GOLD PRODUCER ▪ West Africa's highest margin gold project in construction ▪ On target for +300,000 ounces gold in first 12 months of production at lowest quartile AISC <US$500/oz ▪ Fully-funded, unhedged on track for mid-2020 production from open-pit oxide and free-milling
Slide 5: Why Burkina Faso?
WHY BURKINA FASO? ▪ Underlain by Birimian gold bearing rocks ▪ 1.7 Moz gold production in 2018 ▪ Sanbrado the 14th commercial gold mine in 14 years ▪ Historically stable, strong government and community support for gold mining ▪ Sanbrado located in stable south-central Burkina Faso, close to militar
Slide 6: Capital Structure and Analyst Coverage
CAPITAL STRUCTURE AND ANALYST COVERAGE ASX: WAF Analyst Coverage2 Total Ordinary Shares on Issue 870.5m Argonaut James Wilson Options and performance rights on issue 14.2m Euroz Andrew Clayton Top 20 Shareholders 56% Hartleys Mike Millikan Cash at 31 August 2019 A$82m Macquarie Andrew Bowler US$110m
Slide 7: Experienced Board and Management
EXPERIENCED BOARD AND MANAGEMENT BOARD OF DIRECTORS SENIOR MANAGEMENT RICHARD HYDE SIMON STORM MATTHEW WILCOX LUKE HOLDEN Executive Chairman & Non-Executive Chief Development GM Sanbrado Operations Chief Executive Officer Director & Co-Sec Officer Process Manager Founder, Geologist Chartered Account
Slide 8: Sanbrado Gold Project
SANBRADO GOLD PROJECT Project Status Fully funded, fully permitted, tracking to budget 80% and schedule for COMPLETE mid-2020 gold production 8
Slide 9: 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 10: M1 South Deposit
SANBRADO GOLD PROJECT M1 SOUTH DEPOSIT April 2019 MRE ▪ Open Pit 0-100m – 183koz at 6.3 g/t Au 178koz at 6.4 g/t gold (Indicated) 5koz at 5.2 g/t gold (Inferred) ▪ Underground 100-700m – 814koz at 19.5 g/t Au 697koz at 21.9 g/t gold (Indicated) 117koz at 11.2 g/t gold (Inferred) April 2019 Probable
Slide 11: M1 South Deposit
SANBRADO GOLD PROJECT M1 SOUTH DEPOSIT +700m and still going strong ▪ Step down drilling confirms mineralisation still wide open. Recent drilling beneath reserves include: – TAN18-DD228: 25m at 15 g/t Au from 862m including 5.5m at 40.4 g/t Au – Step-down drilling to commence in late 2019 TAN18-DD22
Slide 12: M5 Deposit
SANBRADO GOLD PROJECT M5 DEPOSIT April 2019 Mineral Resource Estimate 2019 Grade Control Highlights ▪ 51.3Mt at 1.2 g/t Au for 2.0 Moz Au ▪ 29m at 13.2 g/t Au from surface, including 18m at 18.2 g/t Au from 11m ▪ 36.6Mt at 1.2 g/t Au for 1.47Moz Au (Ind) ▪ 28m at 6.2 g/t Au from surface, including 1
Slide 13: Annual Production - April 2019 DFS
SANBRADO GOLD PROJECT ANNUAL PRODUCTION – APRIL 2019 DFS + UG POTENTIAL AFTER Y6 400,000 350,000 ▪ M1 South OP 2 years, M5 OP 10 years ▪ M1 South UG 6.5 years, Y1-6 average 100Koz gold 300,000 ▪ TAN18-DD228: 25m at 15 g/t Au from 862m including 5.5m at 40.4 g/t Au 220m beneath current reserves 250,0
Slide 14: Targeting Commercial Production H2 2020
SANBRADO GOLD PROJECT Ta r g e t i n g c o m m e r c i a l p r o d u c t i o n H 2 2 0 2 0 Project Status Highlights ▪ SAG and Ball mills mechancial installation 90% complete ▪ Electrical installation well underway on all areas ▪ Commissioning Acitivities due to start in Q1 2020 Overall Award of Maj
Slide 15: West African Construction Team
WEST AFRICAN CONSTRUCTION TEAM E X T E N S I V E P R O J E C T D E V E L O P M E N T E X P E R I E N C E I N B U R K I N A FA S O Chief Matthew Wilcox - Over 20 years experience in mining construction. Project Director for Nord Gold’s 4Mtpa Development Bissa and 8Mtpa Bouly projects, both located in
Slide 16: Process Plant Area
SANBRADO GOLD PROJECT PROCESS PLANT AREA ▪ SAG and ball mill mechanical installation 90% complete ▪ 90% of structural and mechanical equipment has been installed on site ▪ Electrical installation has commenced and approximately 10% complete. 16
Slide 17: Process Plant Construction Progress
SANBRADO PROCESS PLANT CONSTRUCTION PROGRESS 1 3 2 4 1. Primary crusher base and chamber 3. Process Plant 2. ROM pad 4. Reclaim tunnel 17
Slide 18: M1 South Underground
M1 SOUTH UNDERGROUND CONSTRUCTION PROGRESS - UNDERGROUND 1 2 3 4 1 & 2 – Decline advancement at M1 South 18
Slide 19: Camp, Clinic and Administration Buildings
SANBRADO GOLD PROJECT C A M P, C L I N I C A N D A D M I N I S T R AT I O N B U I L D I N G S ▪ 270 person camp - accommodation units complete ▪ Clinic, police and security building and wall complete ▪ Camp kitchen and mess building complete and operational 19 ▪ Rec area, bar and swimming pool opera
Slide 20: Water Storage Facility, Pipeline and Tailings Storage Facility
SANBRADO GOLD PROJECT WATER STORAGE FACILITY, PIPELINE AND TAILINGS STORAGE FACILITY ▪ Lined two million cubic metre WSF complete ▪ TSF earthworks 90% complete and liner 40% complete ▪ 21km pipeline and abstraction tower complete ▪ 1.4 million cubic metres pumped and stored for start-up20
Slide 21: 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 Government support at ground breaking ceremony May 2019 2018. ✓ Environmental permit was granted in 2018 coverin
Slide 22: Near-Term Catalysts
NEAR-TERM CATALYSTS ON BUDGET AND ON SCHEDULE FOR GOLD PRODUCTION MID 2020 Commence major earthworks and civils Q1 2019 ✓ Pour first concrete, CIL tank and mill foundations Q2 2019 ✓ Complete pipeline and 1.5M3 water storage facility Q2 2019 ✓ Complete underground box-cut and start decline Q2 2019 ✓
Slide 23: Project Schedule
SANBRADO PROJECT SCHEDULE CURRENT DEVELOPMENT PLAN FOR 2019 AND BEYOND 2018 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Further resource / reserve and definition drilling Mining and environmental permits approved ✓ Updated DFS ✓ Award of EPCM and Order Mill Package ✓ Detailed design and commenceme
Slide 24: Mineral Resources and Reserves
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 25: 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 25 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
Slide 26: West African Resources Ltd - ASX: WAF
West African Resources Ltd – ASX: WAF www.westafricanresources.com
West African Resources — Investor Presentation (December 2019) on 6ix