WEST African Resources said gold production for 2021 totalled 289,000 ounces, in excess of the upper end of its forecast and a record for the company in its first full year of operation at the Sanbrado, a gold mine in Burkina Faso.
Production for the final quarter of the year of 87,320 oz was also a record for any quarter since commissioning in mid-2020.
Gold sold during the quarter was 86,520 oz, bringing 2021 gold sales to a record of 295,220 oz. Gold production and cost guidance for 2022, and updated resources and reserves for Sanbrado and Toega will be reported later this month.
Toega was bought from Canadian gold producer B2Gold and its investment partner GAMS-Mining F&I for $45m in April 2020. The mine is also situated in Burkina Faso.
“To have exceeded 2021 production guidance in what was a very challenging year is a credit to our dedicated team of staff and contractors,” said Richard Hyde, executive chairman of West African Resources.
“We look forward to releasing production and cost guidance for 2022, and updated resources and reserves for Sanbrado and Toega later in Q1 2022. Work on the Kiaka feasibility study is underway and is on track for completion by the end of Q2 2022.”
West African Resources aims to become a 400,000 oz a year gold producer by 2025 following the addition of the Kiaka gold project – also from B2Gold.
In return for the 6.8 million oz resource, West African Resources agreed to pay $22.5m in cash, 22.1 million West African Resources shares and a 0.45% net smelter return royalty on the first 1.5 million oz produced from the mine. A further $45m in West African shares will be paid no later than October this year.