West African Resources Limited Stock Market Press Releases and Company Profile
Quarterly Activities Report
Quarterly Activities Report

Perth, Oct 31, 2014 AEST (ABN Newswire) - West African Resources Limited (ASX:WAF) (CVE:WAF) is pleased to report activities on its 100%-owned and 100%-earning gold and copper-gold projects in Burkina Faso, West Africa, for the quarter ending 30 September 2014.

As reported last quarter, West African announced the results of a technical and financial assessment ("Scoping Study") of a heap leach starter project on its Mankarga 5 project, Burkina Faso, on 29 July 2014.

Highlights included:

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

- IRR of 57% with a 16-month payback on initial capital

- Free cash flow of $103 million after capital costs

- NPV5% of $84 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 and sustaining capital)

Material from Mankarga 5 also achieved outstanding gold recoveries in column test work, with recoveries of up to 90% gold, supporting the Company's plans for a heap leach starter project development approach for Mankarga 5.

Diamond drilling during the quarter confirmed potential for a stage two carbon-in-leach (CIL) project at Mankarga 5, demonstrating excellent grade continuity beneath the proposed oxide starter pit that West African intends to treat by conventional heap leach processing.

West African also reported further high-grade gold results from oxide definition drilling at Mankarga 5, including step-out oxide drilling that intercepted the Mankarga 5 structure 500m northeast of the existing resource on sections NE1400 and NE1500, which remains open to the northeast.

West African will use drill results from the quarter to expand the Mankarga 5 resource in an update planned for the December quarter.

A breakdown of drilling for the September Quarter includes:

- Diamond: 10 holes; 1,458.8 m

- Aircore: 87 holes, 2,504 m

Mankarga 5 Deposit (Tanlouka Permit)

West African acquired the Tanlouka Permit in January 2014 following its acquisition of TSXV-listed Channel Resources Ltd.

Since the acquisition, West African fast-tracked exploration at Mankarga 5, including reverse circulation (RC) drilling, metallurgical diamond core drilling and oriented diamond core drilling targeting high-grade zones. On 14 April 2014, West African reported an updated independent resource estimate of 5.7 million tonnes grading 1.7g/t gold containing 315,000 ounces gold Indicated and 11.4 million tonnes grading 1.6g/t gold containing 568,000 ounces gold Inferred (at a 1.0g/t cut-off) for Mankarga 5. West African plans to update this estimate in the December 2014 quarter.

The Company aims to be a +50,000oz per annum gold producer by the end of 2015 via a low-cost heap leach starter project at the Mankarga 5 deposit, subject to study outcomes. West African secured a second-hand 1.6Mtpa heap leach plant in February as part of its plan to fast-track development of Mankarga 5.

Scoping Study

West African announced a Scoping Study for the Mankarga 5 Gold Project on 29 July 2014. The study demonstrated Mankarga 5 as a high margin, low Capex gold project. The study assumed annual throughput of 1.6Mtpa, which is in line with the capacity of the second hand plant the Company purchased earlier in 2014 (ASX TSXV: 20/02/2014). The base case is stated assuming a 100% basis and a gold price of $1,300/oz. All amounts are in US dollars unless otherwise stated.

Economic Summary
Pre-Tax        $1100/oz      $1300/oz      $1500/oz

NPV0% ($M)       $58            $103         $145
NPV5% ($M)       $45             $84         $119
IRR %            37%             57%          71%
Payback (Months) 25 16 12 

After-Tax      $1100/oz       $1300/oz      $1500/oz

NPV0% ($M)       $47             $80         $111
NPV5% ($M)       $35             $64          $90
IRR %            32%             49%          62%
Payback (Months)  26              18           14
A Mineral Resource estimate prepared by Ravensgate Mining Consultants in April 2014 (reported in accordance with NI 43-101 standards and JORC (2012) guidelines was used for the Scoping Study (see table below). This was based on drilling data until March 2014. The Company has completed 20,000m of drilling since then and intends to upgrade the resource in the December 2014 quarter.

The study demonstrated positive results for starter project focussing on the oxide portion of the Mankarga 5 resource.

For full details of the Scoping Study, refer to the ASX/TSXV announcement dated 29 July 2014.

To view the full quarterly 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
E: info@westafricanresources.com
WWW: www.westafricanresources.com

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