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Gold mining company West African Resources (ASX:WAF) has provided an update on the progress of the Toega mining permit application and the renewal of its Sanbrado mining permit.
“West African Resources continues to demonstrate its ability to operate effectively and sustainably in Burkina Faso and deliver on its business strategy,” WAF Executive Chairman and CEO Richard Hyde said.
“Mining at Toega will provide 8 years of ore feed for Sanbrado and bring taxes, jobs, and other economic benefits to Burkina Faso and the communities surrounding Sanbrado and Toega.”
WAF has maintained a strong presence in the Burkina Faso region since its first gold pour at its Sanbrado Gold Operations in March 2020.
Since then the company has expanded its operations, securing 90% ownership of the Kiaka Gold project, and its focus on local community engagement, social sustainability, and rehabilitation efforts.
Toega mining permit application
The Burkina Faso Council of Ministers recommended approving the draft decree on March 20, 2024.
According to the Mining Code of Burkina Faso, the permit will be granted to a local Burkina Faso company, with WAF holding 90% ownership and the State of Burkina Faso holding 10%.
This approval represents the final operational permit required to initiate mining at the Toega open pit gold deposit.
“We look forward to bringing the Toega open pit deposit online after we commence gold production at our 7.9 million ounce Kiaka gold project.” Richard Hyde said.
“We are steadily progressing our strategy of doubling WAF’s annual gold production to over 400,000 ounces per year by 2025.”
Sanbrado mining permit renewal
Additionally, the Burkina Faso Council of Ministers recommended approving the draft decree for renewing the Sanbrado mining permit for an additional five years.
Sanbrado’s gold production is expected to average over 210,000 ounces per annum for the next decade, with an increase to more than 230,000 ounces per annum upon the commencement of operations at the Toega open pit and the projected M5 South underground from 2026.
WAF last traded at $1.09, at 12pm AEDT.
