West African Resources (ASX: WAF) acquired 90% of the Kiaka gold project in Burkina Faso from B2Gold (TSX: BTO; NYSE-AM: BTG) in November 2021 and says it plans to start major works in early 2023 with the first gold pour forecast for 2025.
Once in production, Kiaka will be the Australian company’s second gold mine, after pouring first gold at its Sanbrado gold mine, 90 km east-southeast of the capital Ouagadougou, in March 2020, six months ahead of schedule and US$20 million under budget.
A feasibility study on the Kiaka project, 45 km south of the Sanbrado mine, outlined a mine life of 18.5 years with average gold production of 219,000 oz. gold a year.
On Dec. 5, West African Resources announced that it has awarded the EPCM contract for Kiaka to engineering and project management firm Lycopodium (ASX: LYL). Both companies are based in Perth, Australia, and worked together on building the company’s flagship Sanbrado mine.
Lycopodium’s track record in Burkina Faso includes delivering EPCM projects for a number of assets now owned by Endeavour Mining (TSX: EDV; LSE: EDV; US-OTC: EDVMF), including Hounde and Karma, Natougou, and Wahgnion. It also worked on Orezone’s (TSX: ORE) Bombore project, and Nordgold’s Bissa and Bouly projects.
West African also announced it has selected Metso Outotec to supply Kiaka with an 18 mega-watt (MW) semi-autogenous grinding (SAG) mill and a 9MW ball mill. Metso provided the mills at Sanbrado, too.
Like Lycopodium, Metso Outotec has a long track record in West Africa, and has installed mills at Endeavour Mining’s Ity mine in Cote d’Ivoire and Hounde in Burkina Faso; and Perseus Mining’s (TSX: PRU; ASX: PRU) Yaoure mine in Cote d’Ivoire.
According to the Kiaka feasibility study, released in August, pre-production capital costs will come to about US$430 million and at a gold price of US$1,750 per oz. can be repaid pre-tax in about two and a half years. During the first five years of mine life, all-in sustaining costs are estimated to average US$953 per oz. and US$1,052 per oz. over the full 18.5 year mine life.
