Gold mining company West African Resources Limited (ASX: WAF) is pleased to report progress on its Sanbrado Gold Operations ('Sanbrado'), Burkina Faso, for the quarter ending 31 March 2020.

Sanbrado Gold Project - Development

All construction works complete - 10 weeks ahead of schedule and US$20M under budget

17MW Power station complete and operational

Over 3 million hours worked LTI free

Sanbrado Gold Project - Operations

4,778 oz of gold poured during March

Process plant fully commissioned and operational

Open pit and underground mining tracking to schedule and budget

First underground ore mined

March 2020 Financial Summary

$41.1M project expenditure in the quarter

$0.5M administration costs

$81.5M cash and $12.5M gold at 31 March 2020

US$200m Taurus finance facility fully drawn

June 2020 Quarter Plans

Execute the mining plan and maintain steady mill performance

Continue underground ore development and advancing decline

Commence gold sales

Sanbrado Gold Operation

During the quarter the Company achieved a number of significant milestones including completing commissioning of the Sanbrado processing plant, pouring first gold, mining first underground development ore and passing the 3 million hours worked mark LTI free. The site management team have done an exceptional job ramping up the operation while dealing with the impact of the global COVID-19 pandemic on the Company's operation. At the time of reporting the Company's mining activities and gold production remain unaffected. There have been no confirmed cases of COVID-19 infection reported by any of the Company's employees or contractors operating at the Sanbrado Gold Operation ('Sanbrado') nor by residents of host communities located adjacent to the project area.

Project Development

During the March quarter construction and commissioning activities were completed in all areas, 10 weeks ahead of the updated DFS schedule (ASX: 18/4/19) and 6 months ahead of the original schedule from the 2018 feasibility study (ASX: 22/6/18). The project was also delivered $20M under budget in comparison to the 2019 DFS capital cost estimate. The 2019 feasibility study had proposed a third party owned power station, however during the tendering process WAF changed this approach and opted to build and own the 17MW power station outright, incurring an additional $18M, bringing the overall project cost in line with the 2019 feasibility capital estimate.

By the end of March, the process plant mill throughput was meeting nameplate capacity and the 17MW power station was complete and operational. During the quarter, construction of the second stage of the tailing storage facility commenced. Drainage work also continued around the site with key diversions and sediment control structures excavated in preparation for the 2020 wet season.

The Company would like to thank WAF's Owners Team and key contractors and consultants; ECG, Outotec, Lycopodium, Knight Piesold, Enikon, EERIE BF, PSS, Kanazoe and Sogea Satom for their hard work and dedication through the Sanbrado build. Over 3 million hours were worked on the project LTI free, which is a credit to WAF's OHS team and the professionalism of the key contractors and consultants involved with the build process.

Operations

Open-pit Mining

Open pit mining continued in M5 and M1 South areas during the quarter. Preparations are underway to open up the northern extension of M5. This area will provide the opportunity for more operational flexibility, including a lower strip ratio, free dig ore supply and better equipment utilisation. ROM stocks at quarter-end were approximately 313Kt grading 1.3 g/t Au, including low grade ore.

Underground Mining

Underground mining has also continued during the quarter. The first crosscut through mineralisation was completed in March on the 2120 Level (180mbsl) which defined both the hanging wall and footwall of the M1 South mineralised zone. Face and wall assays have been higher than estimated in the resource model, with higher grades associated with zones where visible gold was observed, these returned grades of +30g/t Au. Strike driving has commenced in the 2120 ODS, with abundant visible gold also present in the development faces (driving along strike).

During the quarter, grade control drilling commenced, covering off the first stoping panels to be mined of the M1 South underground reserve. Drilling has clearly defined hangingwall and footwall contact zones, which will enable more accurate stope definition. Results have reported within acceptable limits in comparison with the 2019 Mineral Resource Estimate.

Processing

The process plant has been operational since Sunday 8th March. The plant processed 200Kt of oxide open-pit material grading 1.3 g/t Au, during the month including periods of scheduled shutdown for maintenance. A total of 148.6 kg of gold (4778.7 troy ounces) was poured during the quarter. Information compiled for the metallurgical balance indicates a plant recovery of 92%. Following the end of the quarter the first ore from the M1 South underground was processed.

COVID-19 Response

During the quarter the Company has made comprehensive safety and logistical changes to maintain gold production in response to the developing COVID-19 global pandemic.

Health and Safety

At the time of reporting there have been no cases of COVID-19 infection reported by any of the Company's employees or contractors operating at Sanbrado nor by residents of host communities living adjacent to the project area. The Company has been adhering to guidelines set out by the Western Australian Department of Health since early February 2020 and has continued to update procedures as the COVID-19 situation has unfolded. The Company's CSR team has been working with our host community providing updates and educational material to minimise the potential impact of COVID-19 on our local communities.

The Sanbrado site has self-quarantined with all mine staff and contractors now being housed on site. Movement of people in and out of site is strictly controlled and only permitted by the direct approval of the Mine Manager. Personnel considered high risk (ie with existing health conditions) have been identified and demobilised from site. All people entering and leaving site are subject to a health assessment, including a temperature check. Social distancing on site is being observed. Additional handwashing and hand sanitiser stations have been set-up around the site to improve hygiene.

WAF medical staff will implement an isolation policy and testing for anyone suspected of being COVID-19 positive. Site management have prepared an isolation block in camp for any suspected cases and we have qualified medical personnel and medical supplies on site to deal with any COVID-19 cases. Staff and contractors on site are also implementing additional health and safety protocols related to their work procedures to further reduce the risk. WAF's site management team includes key people that worked through the Ebola crisis in Guinea in 2014-15.

Contact:

Richard Hyde

Tel: 08 9481 7344

Email: info@westafricanresources.com

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