Standout Africa-focused gold miner West African Resources is getting the band back together for its proposed new US$430 million Kiaka openpit gold project in Burkina Faso, greenlighting Lycopodium to build an 8-10 million tonnes per annum plant and Metso Outotec to supply ball and SAG mills.
Lycopodium delivered WAF’s flagship Sanbrado gold plant ahead of schedule and under budget, while Metso manufactured the mills.
WAF said this week it had received “strong interest from eight tier-one financiers” to provide debt finance of US$300m for Kiaka, where it plans to start construction next year.
The proposed 19-year surface mine, slated to begin gold production in 2025, would add 219,000 ounces a year at AISC of US$1050/oz to WAF’s current 220,000-240,000oz at $1040-1100/oz (scheduled this year) from Sanbrado. Its initial Burkina Faso project has a circa-13-year current mine life.
WAF said the Kiaka EPCM contract, starting with engineering and procurement services, had been awarded to ASX-listed Lycopodium, the leading new gold plant builder in Africa over the past decade. The grinding mill package had been awarded to Metso Outotec and orders placed for 18MW SAG and 9MW ball mills.
“We are pleased to announce the EPCM contract award to Lycopodium and award and placement of the mill package with Metso Outotec. We are pleased to team up again with Lycopodium and Metso Outotec following our successful partnership on the construction of Sanbrado, which was completed ahead of schedule and under budget,” said WAF executive chairman Richard Hyde.
“Securing the debt will ensure WAF is very well positioned to fund Kiaka, particularly given our significant ongoing cashflow contribution from Sanbrado and our robust balance sheet.
“WAF is in an exciting growth phase, as we aim to a be a multi-project, plus-400,000ozpa gold producer in 2025.”
WAF’s share price is up about 13% in the past month, capitalising the company at about A$1.25 billion.