West African Resources Limited Delivers Pre-Tax 57% IRR Stage 1 Gold Project

PERTH, Australia--()--West African Resources Limited (ASX:WAF) (TSX-V:WAF) is pleased to announce the results of its technical and financial assessment of a heap leach starter project on its Mankarga 5 project, Burkina Faso.

This assessment constituted an independently managed scoping study (Australian JORC Code term) and a preliminary economic assessment (Canadian NI 43-101 term) and is herein for convenience referred to solely as the "Scoping Study". It was prepared in accordance with the requirements of both the 2012 JORC Code and NI 43-101.

Highlights

Base case is stated on a pre-tax basis assuming 100% project at a gold price of $1,300/oz. All amounts are in US dollars unless otherwise stated.

- IRR of 57% with a 16 month payback on capital costs - Free cash flow of $103 million after capital costs

- NPV5% of $84 million

- Pre-production capital of $35 million plus working capital and contingency of $9 million

- Estimated average annual gold production of 59,400 ounces for first three years

- Estimated average annual gold production of 44,100 ounces for life of mine

- Current study mine life of 5.4 years

- Life of mine strip ratio 1:1

- Cash costs of $614/oz

- All-in sustaining cash costs of $685/oz (including cash costs, royalties, refining & sustaining capital)

Managing Director Richard Hyde, said, "The study has shown that Stage 1 of the development of Mankarga 5 has a very short payback, high internal rate of return and NPV two and a half times capital costs. The study marks an important milestone for us as we can now transition from explorer to a low capital cost developer, which is an excellent achievement only six months after acquiring the Mankarga 5 project."

To view the release, please visit:

http://media.abnnewswire.net/media/en/docs/ASX-WAF-685334.pdf

About West African Resources Limited

West African Resources Limited (ASX:WAF) (TSX-V:WAF) is a gold-copper exploration company dedicated to creating shareholder value through the acquisition, exploration and development of resource projects in Burkina Faso, West Africa.

West African has a landholding of 6,370sq km and 200km of strike length of early Proterozoic Birimian greenstone belts, which are highly prospective for gold mineralisation.

Contact

West African Resources Limited
Nathan Ryan, Investor Relations
T: +61-420-582-887
E: info@westafricanresources.com
WWW: www.westafricanresources.com

Contacts

West African Resources Limited
Nathan Ryan, +61-420-582-887
Investor Relations
info@westafricanresources.com
www.westafricanresources.com

Sharing

Contacts

West African Resources Limited
Nathan Ryan, +61-420-582-887
Investor Relations
info@westafricanresources.com
www.westafricanresources.com