West African shares rise on Kiaka drilling result
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The news: West African shares advanced in early trading on the ASX after the gold miner reported results from its maiden grade control drilling program at its Kiaka gold project in Burkina Faso, returning thick zones of near-surface gold mineralisation.
The numbers: West African shares were up 2.8% to $1.47 at 11:00am AEST, having gained more than 60% over the last 12 months.
The miner said its drilling operation confirmed its geological model, with mineralisation 130 metres to 185 metres wide near the surface.
The result included 30 metres at 4.1 grams per tonne (g/t) and 29 metres at 2.6 g/t. Higher-grade gold mines have densities of around 8 to 10 g/t, while lower-grade mines have densities of 1 to 4 g/t.
The context: West African said the result "significantly de-risks" its early production plan, with mining on track to commence in Q1 2025. Construction at Kiaka is progressing on time and on budget, it said, with first gold production expected in Q3 2025.
The company is targeting production of 4 million ounces over the next decade, with annual production set to peak in 2029 at 473,000 ounces of gold.
West African shares plunged on the ASX earlier this month, after the miner announced a $150 million placement to progress the development of Kiaka.
The source: ASX announcement
