West African Resources Reports Steady Gold Production in March Quarter
West African Resources announced its production figures for the March 2024 quarter from its Sanbrado Gold Operations. The company, which operates without hedging its gold production, continues to make significant strides in its mining activities.
For the first quarter of 2024, the company reported gold production of 56,595 ounces and gold sales totaling 49,509 ounces at an average price of US$2,078 per ounce. These figures illustrate the company's strong position in the gold market and its ability to capitalize on favorable pricing.
The quarter saw a 22% increase in underground mined ounces compared to the December 2023 quarter, with 105kt of ore mined from the M1 South at an impressive grade of 8.1g/t, yielding 27,484 ounces of gold. However, open pit mined ounces saw a significant decrease of 59% from the previous quarter, with 555kt of ore mined at 1.2g/t for 21,941 ounces of gold. This decrease was anticipated and aligns with the mine plan, which included the completion of mining at the M5 South open pit within the quarter.
The company noted a decrease in contained gold in ore stockpiles by 10,823 ounces over the quarter. Despite this, gold production remained consistent with the December 2023 quarter, with 844kt of ore milled at a head grade of 2.2 g/t and a recovery rate of 93.9%.
At the quarter's end, bullion awaiting settlement increased by 8,982 ounces to 12,126 ounces. West African Resources is on track to meet its 2024 guidance of producing between 190,000 to 210,000 ounces of gold at an all-in sustaining cost (AISC) of less than US$1,300 per ounce.
