Resource Boost at M1 South Drilling Raises Questions on Production and Costs Ahead

Strong Drilling Results at M1 South

West African Resources Limited (ASX: WAF) has announced a series of impressive high-grade gold intercepts from its recent diamond drilling campaign beneath the current ore reserves at the M1 South underground operation, part of its Sanbrado Gold Operations in Burkina Faso. The drilling program, which aimed to convert Inferred Mineral Resources to Indicated status, delivered standout results including a remarkable 44 metres grading 25.8 grams per tonne (g/t) gold and 44.5 metres at 17.1 g/t gold.

These intercepts not only confirm the continuity and quality of the mineralisation but also suggest an uplift in both contained gold and ore tonnage compared to the 2024 resource model. The drilling campaign comprised 59 holes totaling over 25,000 metres, with the final 32 holes reported in this release, underscoring the scale and thoroughness of the resource definition effort.

Implications for Resource and Production Outlook

West African’s Executive Chairman Richard Hyde highlighted that these results reinforce the underground operation’s status as a high-margin, long-life asset. The company plans to incorporate the new drilling data into updated Mineral Resource and Ore Reserve estimates scheduled for release in the third quarter of 2025. This update will also include a refreshed 10-year production outlook, which is eagerly anticipated by investors and analysts alike.

Hyde also pointed to the nearing completion of the Kiaka project, which, alongside Sanbrado, positions West African Resources to operate two significant, unhedged, low-cost gold production centres in 2025. These developments underpin the company’s aspirational goal of reaching 500,000 ounces of gold production annually by 2030, a target that, while ambitious, signals strong growth potential.

Geological Confidence and Operational Continuity

The drilling results have exceeded expectations, with mineralisation aligning closely with geological models. The high-grade zones demonstrate predictable tenor and geometry, which is critical for mining planning and operational efficiency. Noteworthy assay highlights include multiple intercepts with grades well above 10 g/t gold over substantial widths, and some intervals featuring exceptionally high-grade visible gold, such as a 0.5m section assaying 1723.3 g/t gold.

This consistency and grade continuity provide confidence in the resource’s robustness and the potential for extending mine life. The Sanbrado operation’s processing plant, commissioned in 2020, has demonstrated recoveries in line with feasibility studies, further supporting the economic viability of these resources.

Looking Ahead

With the Mineral Resource and Ore Reserve update due in Q3 2025, market participants will be watching closely for confirmation of resource growth and the implications for production guidance. The combination of strong drilling results and the imminent ramp-up of the Kiaka project could mark a transformative phase for West African Resources, potentially reshaping its position in the West African gold mining landscape.