West African Resources Limited (ASX: WAF) is an unhedged gold mining company operating in Burkina Faso. As of 6 February 2025, its share price was AUD 1.52. The company is advancing the Kiaka Gold Project (‘Kiaka’), a large-scale development expected to significantly increase annual gold production. With mining set to begin in Q1 2025 and first gold production targeted for Q3 2025, WAF is positioned to become a +420,000-ounce-per-year gold producer, reinforcing its status as a leading regional gold miner.
Grade Control Drilling Confirms Strong Gold Intercepts
The maiden grade control drilling program at Kiaka Main Pit Stage 1 has delivered consistent high-grade intercepts, confirming the strength of the deposit. Notable results include 5m at 27.2 g/t gold, 11m at 8.7 g/t gold, and multiple intervals above 2 g/t gold, reinforcing the continuity of mineralisation.
Mineralisation extends over 400m at surface, enabling a low 0.8:1 strip ratio, which enhances operational efficiency and cost-effectiveness. The deposit remains open at depth, offering future expansion potential. These results indicate that Kiaka’s geological model remains intact, reducing operational risks as the project transitions into production.
Project development remains on track and within budget
Kiaka’s development timeline remains aligned with feasibility study expectations, with mining activities set to commence in Q1 2025. Waste stripping will begin in late Q1, followed by initial ore mining in early Q2, ensuring a smooth ramp-up towards first production.
The processing plant and mine construction are progressing on schedule, supported by a strong project team with a track record of timely execution. WAF has successfully managed cost controls, keeping the project within budget despite inflationary pressures on the mining sector. The company’s ability to maintain cost discipline enhances its long-term profitability outlook.
Kiaka set to more than double WAF’s annual gold output
With production at Sanbrado Gold Project already established, Kiaka will more than double WAF’s annual output, positioning it as a top-tier mid-tier gold producer. The 20-year mine life, combined with a projected production of 420,000 ounces per year, provides investors with long-term visibility on cash flow and asset value appreciation.
Gold price trends remain supportive, with demand for safe-haven assets and central bank reserves driving strong market fundamentals. As a low-cost producer with high-grade resources, WAF is well-positioned to benefit from potential price appreciation while maintaining stable operational margins.
With its low-cost production model, large-scale reserves, and disciplined execution, Kiaka presents a compelling investment opportunity. Investors should monitor further project milestones, additional resource expansion, and operational cost efficiencies, as these will be key drivers of long-term share price performance.
As WAF advances towards first production in Q3 2025, its growing resource base and expanding production profile position it for sustained revenue growth and value creation, making it a key player in the West African gold sector.