Annual Report to Shareholders
Annual Report to Shareholders

Perth, Sep 29, 2014 AEST (ABN Newswire) - During the year ended 30 June 2014, West African Resources (ASX:WAF) (CVE:WAF) acquired 100% of TSXV-listed Channel Resources Limited, which held the Tanlouka Permit, adjacent to West African's Boulsa Gold Project in Burkina Faso, and commenced work on exploring and evaluating the Mankarga 5 resource. West African is aiming to become a +50,000-ounce gold producer in 2015.

Highlights of the year included:

- Completion of the acquisition of TSXV-listed Channel Resources Limited, taking a 90% interest in the Tanlouka Permit, which included the Mankarga 5 resource

- Entered an agreement to acquire the remaining 10% of the Tanlouka Permit

- Increasing the Inferred Resource at Mankarga 5 by 74% and the Indicated Resource by 12%

- Purchased a second-hand 1.6 million tonne per annum heap leach plant

- Completed a scoping study for Mankarga 5

- Commenced a feasibility study for Mankarga 5

- Completed 51,400m of drilling.


In August 2013, the Company announced its intention to acquire TSXV-listed Channel Resources Ltd. West African's focus of the acquisition was Channel's main asset, the Tanlouka Permit, which included the Mankarga 5 Mineral Resource. Final approvals from the TSX were granted in January 2014.

West African purchased a second hand 1.6Mtpa heap leach plant for the Boulsa Project in February 2014 and is targeting gold production from the Mankarga 5 deposit in 2015.

On 14 April 2014, an independent resource estimate for the Mankarga 5 deposit on the Tanlouka Permit, increased the Inferred Resources by 74% and the Indicated Resources by 12% (using a 0.5g/t gold cut-off). This followed West African entering an agreement to acquire the remaining 10% of the Tanlouka Permit in March 2014. The Company now has the right to earn 100% of the project following completion of a positive feasibility study.

A scoping study to determine the economic potential of a low cost heap leach starter project was completed in July 2014, with highlights including:

- 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)

The Company has commenced Feasibility Studies on the low capital cost starter project, expanding on the components of the Scoping Study, and expects to complete this by the end of 2014.

In terms of exploration, West African undertook drilling where possible during the Burkina Faso wet season in the September 2013 quarter, and then commenced more extensive drilling in the December 2013 quarter at the Moktedu Prospect, 10km north of Tanlouka, as well as diamond drilling at Sartenga to add more confidence to the geological model. Exploration during the March 2014 and June 2014 quarters focused on resource definition at Mankarga 5, including diamond and oxide resource definition drilling.

During the year ended 30 June 2014, West African Resources Limited made significant progress with the discovery of Sartenga and development of Moktedu, both part of the Boulsa Project in Burkina Faso.

To view the annual report, please visit:

About West African Resources Limited

West African Resources Limited (ASX:WAF)West African Resources Limited (ASX:WAF) (CVE: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.



West African Resources Limited
Nathan Ryan, Investor Relations
T: +61-420-582-887

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