Tag Archives: West African Resources

Metso Outotec confirms Premier grinding mill order for West African’s Kiaka gold project

Mineral processing, Mineral project development, Mining equipment, Precious metals, , , , , , , , , ,

Australia-based West African Resources has awarded Metso Outotec an order for state-of-the-art comminution equipment worth €30 million ($32 million) to be delivered to its greenfield Kiaka gold project in Burkina Faso.

Metso Outotec’s delivery includes two Planet Positive Premier™ grinding mills with a total installed power of 27 MW, as well as Metso Outotec’s proprietary metal and rubber mill linings and spare parts.

Kiaka, an asset with 7.7 Moz of reserves and resources on its books, is West African Resources’ second gold mine in the country on top of its operating Sanbrado asset.

WAF’s feasibility study, released in August 2022, outlined pre-production capital costs of $430 million and a 2.5-year pre-tax pay back at a $1,750/oz gold price for the project. Kiaka was expected to operate over an 18.5-year life of mine, producing, on average, 219,000 oz/y of gold (on a 100% basis).

Matt Scully, Project Director, West African Resources, said: “We are pleased to again team up with Metso Outotec for this project. West African is in an exciting growth phase, as we aim to be a multi-project, producing more than 400,000 oz/y of gold in 2025.”

Oskar Gustavson, Technology Director, Grinding at Metso Outotec, said: “The Premier SAG mill to be delivered to the Kiaka project is one of the largest gear-driven grinding mills in the world with its 18 MW of installed power. The Premier ball mill has been designed to pair smoothly with the SAG mill. Both mills are equipped with fail-safe Metso Outotec Polymer Hydrostatic Shoe Bearing systems, significantly increasing reliability and reducing maintenance costs. We are delighted to work with West African Resources on this project.”

West African secures Lycopodium and Metso Outotec mills for Kiaka gold project

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West African Resources Limited is heading towards construction at its 90%-owned Kiaka gold project in Burkina Faso, having registered strong funding interest, awarded an engineering, procurement and construction management (EPCM) contract and booked the mill package for the development.

Kiaka, an asset with 7.7 Moz of reserves and resources on its books, is the company’s second gold mine in the country on top of its operating Sanbrado asset.

WAF’s feasibility study, released in August 2022, outlined pre-production capital costs of $430 million and a 2.5-year pre-tax pay back at a $1,750/oz gold price for the project. Kiaka was expected to operate over an 18.5-year life of mine, producing, on average, 219,000 oz/y of gold (on a 100% basis).

West African Executive Chairman, Richard Hyde, said strong competitive bids from its debt finance process supported the company’s targeted debt of $300 million for the project.

In the meantime, WAF has signed a notice of award with Lycopodium based on the engineering company’s priced proposal for the EPCM of a new carbon-in-leach treatment plant for Kiaka. This award incorporated Lycopodium’s early commencement of the engineering and procurement portion of the contract to complete the engineering and tendering of the long-lead mill package.

Lycopodium was also the contractor on the Sanbrado construction project.

In line with this, Lycopodium and WAF have undertaken a competitive tender process for the supply and delivery of the SAG and ball mill package for Kiaka.

Following the evaluation of tenders, the company selected Metso Outotec to supply the 18 MW SAG mill and 9 MW ball mill. Metso Outotec also provided the SAG and ball mills at Sanbrado (construction of the comminution circuit, pictured). WAF has signed the order with Mesto Outotec, which contains a firm pricing and delivery schedule for the mill package components that fits well into the Kiaka construction schedule, it said.

The mining company says it has mobilised earthworks equipment to the Kiaka project site. The initial areas to be cleared include the permanent camp area and the process plant area. Access road upgrades are also planned to be undertaken during the current dry season.

The construction schedule for Kiaka remains on track, with major works expected to commence in the March quarter and first gold in 2025.

WAF says it also remains on target to meet 2022 production and cost guidance of 220,000-240,000 oz of gold produced at an all-in sustaining cost of less than $1,100/oz.

Second Gekko InLine Leach Reactor heads to West African Resources’ Sanbrado mine

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Gekko says a second InLine Leach Reactor (ILR) has been ordered by West African Resources for its 90%-owned Sanbrado gold mine in Burkina Faso.

The order is one of several to have emerged on the back of strong gold prices, with interest from a range of milling operations across the globe including Russia, North America, South America and Africa, Gekko says.

First developed in 1997, the ILR has provided an alternative from traditional physical separation steps, such as using recovery tables, into a lucrative chemical separation process.

It offers superior recoveries in a proven, high efficiency, safe and highly secure system, according to the company.

Available as a completely automated batch model for processing high grade gravity gold concentrates, the ILR can also be configured as a continuous model for treating high throughput gold, silver and complex sulphide concentrates from InLine Pressure Jigs and flotation circuits.

“The ILR’s innovative design and unparalleled flexibility in gold and silver leaching chemistry is providing cost and production benefits to operations across more than 40 countries across the globe,” Gekko said.

Construction on Sanbrado commenced in late 2018, with first gold poured in March 2020, six months ahead schedule and $20 million under budget.

West African anticipates Sanbrado will produce between 250,000-280,000 oz of gold at all-in sustaining costs of $720-800/oz.

The company says: “The estimated operating costs for the project highlight that the project will be a conventional, low cost and high margin operation. This is a result of high grade ore from M1 South and the significant proportion of oxide and transition material in the mine schedule and the free milling nature of all ore types (average life of mine recovery of 93%), low reagent consumption and a high component of gravity recoverable gold.”

West African moves into new phase at Sanbrado following gold pour

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West African Resources says it has poured first gold at its Sanbrado gold project, in Burkina Faso, just over a week since confirming construction activities had been completed on all areas of the process plant and tailings storage facility.

The inaugural pour occurred on March 18, with gold bars weighing 23.9 kg (768 troy ounces) poured in the first smelt on site.

Since processing started up, 75,000 t of ore at 1.5 g/t Au has been processed, with indicative metallurgical recoveries of over 90%, West African said.

The process plant has also exceeded nameplate capacity for the past seven days of production, the company noted.

Open-pit ore stockpiles are also building with 250,000 t at 1.5 g/t Au on the run of mine pad, the company noted, adding that first underground development ore had been mined and stockpiled, ready to process.

West African Executive Chairman, Richard Hyde, said: “This is a major milestone for West African Resources and marks the beginning of a new phase in the WAF story. To successfully transition from an exploration company to a gold producer is without doubt a great achievement for all involved.

“I would like to thank WAF’s owners’ team and all consultants, contractors and other stakeholders for their hard work and support over the last four years to bring Sanbrado from discovery into production.”

West African a month away from first gold pour at Sanbrado

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West African Resources says it has processed the first ore at its Sanbrado gold project in Burkina Faso, putting it on course to produce its inaugural gold product within the next month.

Construction activities have now been completed on all areas of the process plant and tailings storage facility, according to the company.

All four heavy fuel oil generators have been commissioned in the power station and are now operational, while the desorption and gold room circuits are undergoing commissioning in preparation for a maiden gold pour within the next four weeks.

Open-pit mining contractor, African Mining Services, a subsidiary of the Perenti Group, has ramped up mining activities to include both the M5 and M1 South pits, with day and night shifts starting in the past week, West African said.

Currently, over 360,000 t of oxide ore is stockpiled on the run of mine pad at an average grade of 1.5 g/t Au.

Underground development continues to progress on-schedule with mining contractor Byrnecut Offshore, a subsidiary of the Byrnecut Group, having completed the primary ventilation raisebore. The ventilation fan is also currently being installed. First development ore remains on track for late March and first stoping ore is forecast for the September quarter, the company said.

West African Executive Chairman, Richard Hyde, said: “This is a major milestone for West African Resources and testament to the quality of our team and contractors. Commissioning activities will continue over the next four weeks with the first gold pour on track for early Q2 (June quarter) 2020.”

An updated feasibility study on Sanbrado from 2019 envisaged an initial 10-year mine life, including 6.5 years of underground mining, with probable reserves of 1.7 Moz (21.6 Mt at 2.4 g/t gold). The project was expected to have average annual production over the first five years of 217,000 oz gold with all-in sustaining costs of less than $600/oz.

West African picks Ausdrill’s AUMS for Sanbrado open-pit mining

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Ausdrill, through its wholly-owned subsidiary, African Mining Services (AMS), has been selected by West African Resources as the preferred open-pit mining contractor for the Sanbrado gold project, in Burkina Faso.

Sanbrado, a low-cost, high-grade operation only 90 km from the country’s capital, Ouagadougou, will be the 14th commercial gold mine in Burkina Faso in 14 years. It is forecast to have average annual production of 217,000 oz/y of gold at all-in sustaining costs of less than $600/oz in its first five years of mine life.

The AMS scope of work includes a full suite of open pit mining services – including site preparation, drill and blast, load and haul, and maintenance works – over a five-year term, generating approximately A$235 million ($160 million) in revenue under a schedule of rates contract, Ausdrill said.

AMS anticipates it will employ some 190 personnel at the project, with the workforce to be predominantly local, and use a mix of new and existing equipment to deliver on the project.

AMS and West African Resources are in the process of finalising the contract terms, which will include the provision of an optional deferred payment arrangement for up to $10 million at a commercial interest rate, with works expected to commence in early 2020. West African Resources said mobilisation activities were expected to commence in November, ahead of open-pit mining commencement in January 2020.

Ausdrill Group Managing Director, Mark Norwell, said: “A key focus for the new Ausdrill group has been to enhance our surface operations in Africa and target substantial growth opportunities across a range of commodities in select African countries.

“Being selected as preferred contractor at the Sanbrado gold project is a significant achievement and represents the excellent progress we are making in building on the suite of quality projects on which AMS operates in the region.”

West African Resources Managing Director, Richard Hyde, said: “Sanbrado is the highest margin gold project in construction in West Africa and we are on target for approximately 300,000 oz of gold in the first 12 months of production. We look forward to partnering with AMS to bring this fully funded project into production in mid-2020.”