(Ecofin Agency) - West African Resources announced it has completed an updated feasibility study for its Sanbrado gold project in Burkina Faso. Results showed that the mine’s per annum output increased to 211,000 ounces over the first five years of operation.

Under this updated study, the probable ore reserve is now estimated at 1.6 million oz, 76% more than the previous estimate. In addition, capital costs stand at $185 million with a 16-month payback period. Meanwhile the post-tax net present value rose to $405 million, while the internal rate of return increased to 49%. “The updated FS confirmed that Sanbrado was a robust, high-margin gold project,” CEO Richard Hyde said.

West African Resources, which has already obtained an environmental license for the project, expects an updated operating permit in Q3 2018. Talks with financiers are underway and the company hopes to conclude an agreement by Q4 this year.

Louis-Nino Kansoun