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Highlights:
West African Resources (ASX:WAF) begins mining operations at Kiaka Gold Project, with major equipment now onsite.
Mining activities are ramping up, with the first gold expected by the third quarter of 2025.
Kiaka project aims to be a long-life, low-cost gold operation, contributing significantly to West African Resources' annual gold output.
West African Resources (ASX:WAF), listed on the ASX 200, has initiated mining operations at its Kiaka Gold Project located in Burkina Faso. The company is making significant progress with the project, ensuring all necessary equipment is already onsite. With mining activities ramping up ahead of schedule, West African Resources continues to move towards its goal of expanding its operations in 2025.
Ramp-Up of Mining Operations
Mining operations at Kiaka are accelerating, with initial work focusing on stripping waste material to build the run-of-mine pad. By the end of April, West African Resources had successfully mined 800,000 bank cubic metres of material. This early phase of work is setting the foundation for the main mining operations.
The company expects to see even more progress as night shift operations begin later this month. These additional shifts will help to speed up production, with remaining equipment scheduled to be commissioned soon. The company aims to produce its first gold by the third quarter of 2025, marking a significant milestone for the Kiaka project.
Infrastructure Development
The construction of the Kiaka project’s infrastructure is progressing well. The tailings storage facility has been fully lined, and the installation of the flownet geotextile layer is nearing completion. This critical step ensures the long-term stability of the facility. Additionally, the project is making significant strides in securing power for the site. The 225-kilovolt grid power connection is on track for completion by the third quarter of 2025. In the meantime, backup power is being provided through gensets, ensuring operations run smoothly during the commissioning phase.
Ore Mining and Stockpiling
Ore mining at Kiaka is steadily increasing in preparation for processing operations. By April’s end, the company had stockpiled a substantial amount of ore on the run-of-mine pad, ready for the next phase of processing. The focus is now shifting to extracting ore from the main pit to sustain the project’s long-term goals. The early stages of ore stockpiling indicate that the Kiaka project is on track to meet its expected production goals once processing begins.
Project Outlook
West African Resources anticipates that the Kiaka Gold Project will be a long-life, low-cost operation. With an estimated average annual production, the project is set to significantly contribute to the company’s overall gold output. West African Resources is poised to double its annual production as it brings both its existing and new gold production centers online, expected to reach more than 400,000 ounces per year by 2025.
Global Gold Production Trends
The Kiaka project comes at a time when global gold production is seeing a modest increase. According to the Department of Industry, Science and Resources (DISR), global gold supply grew by a modest amount in 2024. This increase in production is attributed to higher prices for gold, which spurred both recycling and primary gold production. As the year progresses, major gold-producing countries like Canada, Australia, and Papua New Guinea are expected to see increased output from their mines, contributing to global supply growth.
Looking ahead, gold production is expected to remain stable, with production stabilizing around the 5,000-tonne mark by 2026. This steadiness in supply, driven by higher-grade gold veins in existing mines, is reflective of ongoing efforts to maximize output from high-demand markets.
