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West African Resources Ltd
Symbol	WAF
Shares Issued	304,204,039
Close 2016-02-10	C$ 0.06
Market Cap	C$ 18,252,242
Recent Sedar Documents

West African drills one m of 88.4 g/t Au at Tanlouka

2016-02-10 21:12 ET - News Release

News Subject: SEDAR News: West African Resources Limited Attached PDF e:\sedaronline\sedar2016\sedar20160210\02442687-00000001-00035427-C@#SEDARfilings#westafricanPR02102016CA-PDF.pdf File: 02442687-00000001-00035427-C@#SEDARfilings#westafricanPR02102016CA-PDF.pdf Press Release 11th February 2016 West African returns up to 88.4g/t Au at M1 South Gold developer West African Resources Limited (ASX, TSXV: WAF) is pleased to report further RC results from the M3 prospect, at its 100%-owned Tanlouka Gold Project, Burkina Faso. Highlights Resampling on a one metre basis confirms high grades at M1 South RC drilling at M3 confirms continuity of shallow oxide mineralisation in M3 Potential to add ounces to existing heap leach Probable Ore Reserve of 440,000oz gold1 and improve project economics Resource definition drilling at M1 and M3 in progress Managing Director Richard Hyde commented: "Resampling of TAN16-RC118 has confirmed the high grade tenor of mineralisation at M1 South returning up to 88.3g/t Au. "Follow-up RC drilling has commenced beneath artisanal workings and high grade intercepts returned from the current drilling program. "M1 and M3 prospects are located less than 2km from the proposed heap leach starter pit at M5 and will add higher grade ounces to the existing study mine plan." Significant Potential to Increase Project Resources and Improve Project Economics The recently discovered gold mineralisation at the M1 and M3 prospect is yet to be included in the project resource inventory. New mineralisation will be modelled and incorporated in a resource update by Q2 2016. Any additional higher grade oxide tonnes will have a positive impact on the project economics (see page 5). It is expected that oxide mineralisation from M1 and M3 will continue to exhibit similar metallurgical characteristics to M5 oxides (ASX/TSXV: 22/12/2015) and will be amenable to heap leach processing. Follow-up RC and diamond drilling is in progress and will continue during 2016. Results from recent drilling are shown below in Figures 1 and 2 with results presented in Table 1. Principal Office: 14 Southbourne Street, Scarborough WA 6019, Western Australia T: + 61 8 9481 7344 F: + 61 8 9481 7355 E: info@westafricanresources.com www.westafricanresources.com ACN: 121 539 375 1 See page 6 Ore Reserve Table West African Resources Limited Confirmation of high grade gold at M1 South Follow-up resampling of mineralised intercepts at the M1 prospect has confirmed high grade tenor of gold mineralisation at the M1 prospect (See ASX/TSXV: 22/1/16 and 4/2/16). The company routinely carries out 4m composite sampling on first pass drilling to reduce assay costs, with mineralised intervals resampled on a 1m basis for inclusion in future resource estimation studies. Resampled zones have reported very closely to the original intercepts. Some very high grade intervals have been returned including: TAN16-RC099: 57m to 58m : 22.5g/t Au at M1 North TAN16-RC099: 61m to 62m : 25.0g/t Au at M1 North TAN16-RC113: 22m to 23m : 20.2g/t Au at M1 South TAN16-RC118: 60m to 61m : 88.4g/t Au at M1 South TAN16-RC118: 61m to 62m : 49.2g/t Au at M1 South Most of the first pass holes at M1 South intercepted open stopes or mined out zones backfilled with waste. Follow-up drilling is in progress targeting mineralisation beneath these zones between 60 and 90 vertical metres. Further results are imminent. Continuity of shallow oxide gold at M3 Eastern Zone Follow-up drilling has confirmed continuity of gold mineralisation in this area (Figure 1 and 2). TAC1204 returned a result of 19m at 1.8g/t Au from surface, including 4m at 3.3g/t Au mineralisation from 9m down hole depth. Also diamond drilling of the M3 eastern zone returned significant results from fresh rock, confirming a steep dip of mineralisation. Further new results include: TAC1204: 19m at 1.75g/t Au including 5m at 3.33g/t Au from 9m TAC1215: 10m at 1.45g/t Au from 28m, ending in mineralisation TAC1216: 10m at 1.14g/t Au from 14m, and 10m at 1.18g/t Au from 27m, ending in mineralisation TAC1217: 11m at 1.64g/t Au from 22m, ending in mineralisation TAC1231: 8m at 1.47g/t Au from 29m, ending in mineralisation TAC1254: 8m at 1.59g/t Au from 3m, ending in mineralisation TAC1278: 9m at 1.38g/t Au from 18m TAN15-DD031: 2m at 2.21g/t Au from 47m; - and 4m at 1.5g/t Au from 53m - and 7m at 0.64g/t Au from 64m - and 7m at 1.81g/t Au from 77m Page: 2 West African Resources Limited Recent drilling from the current program at M3 has returned significant results including: TAC0995: 5m at 2.17g/t Au from 40m ending in mineralisation TAC0996: 32m at 5.02g/t Au including 13m at 7.14g/t Au from 2m TAC1047: 25m at 2.45g/t Au from 12m, including 17m at 3.35g/t Au, ending in mineralisation TAC1102: 20m at 2.80g/t Au from 24m, including 8m at 3.98g/t Au TAC1127: 15m at 1.2g/t Au from 4m, including 5m at 2.2g/t Au TAC1156: 22m at 1.3g/t Au from 8m, including 8m at 2.71g/t Au, ending in mineralisation TAC1164: 9m at 2.1g/t Au from 28m ending in mineralisation TAC1166: 16m at 2.3g/t Au including 8m a5 4.0 g/t Au, from surface TAC1198: 12m at 2.1g/t Au from surface Figure 1: Mankarga Regional Exploration Summary Plan Page: 3 West African Resources Limited Figure 2: M3 Summary Plan Page: 4 West African Resources Limited Figure 3: M3 Section 2015 PFS Highlights West African Resources Limited completed an updated Pre-Feasibility Study report for an oxide heap leach starter project on its Mankarga 5 Gold Project, Burkina Faso in May 2015 (ASX, TSXV: 15/5/15, 29/5/2015). It was prepared in accordance with the requirements of both the Australian 2012 JORC Code and Canadian NI 43-101. The report is filed on SEDAR and on the Company's website. A summary of the base case is stated below assuming a 100% project at a gold price of $1,300/oz. All amounts are in US dollars. Production of 69,000oz pa for first 3 years, 49,000oz pa for life of mine, 7 year life of mine Cash costs $428/oz for 3 years, $635/oz life of mine All-in cash costs of $538/oz for 3 years, $749/oz life of mine Pre-tax IRR of 63% with 14-month payback, post-tax IRR of 50% with 16-month payback Pre-tax cash flow of $146m, post-tax cash flow of $118m after initial and sustaining capital costs Pre-tax NPV5% of $117m, Post-tax NPV5% of $86m Probable Ore reserve of 440,000oz, life of mine strip ratio 2:1 Potential to upgrade in-pit Inferred Resources currently treated as waste in mining schedule Nearby drill ready oxide targets with potential to add to the base case Page: 5 West African Resources Limited Mankarga5 April 2015 Resource Cut-off Indicated Resource Inferred Resource (Au g/t) Tonnes Grade Au Oz Tonnes Grade Au Oz (Au g/t) (Au g/t) Oxide 0.5 7,200,000 1.2 273,000 800,000 0.8 20,000 1 3,100,000 1.8 180,000 200,000 1.2 7,000 Transitional 0.5 2,300,000 1.2 89,000 500,000 0.9 13,000 1 1,000,000 1.9 60,000 200,000 1.3 6,000 Fresh 0.5 9,500,000 1.2 377,000 39,100,000 1.0 1,320,000 1 4,200,000 1.9 256,000 14,800,000 1.6 778,000 Total 0.5 19,000,000 1.2 736,000 40,400,000 1.0 1,350,000 1 8,400,000 1.8 495,000 15,200,000 1.6 791,000 Mankarga5 May 2015 Ore Reserve Strongly Moderately Transition Fresh Total Category Oxidised Oxidised Mt Au g/t Au Mt Au Au Mt Au Au Mt Au Au Mt Au Au koz g/t koz g/t koz g/t koz g/t koz Probable 3.0 1.10 96 5.4 1.04 183 1.3 1.46 63 1.5 2.11 98 11.2 1.22 440 Cautionary Note: Mineral Resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. Production targets for the proposed heap leach starter project referred to in this announcement were first released to the ASX and TSXV on 23 February 2015. They are preliminary and there is no certainty that the production targets, or the forecast financial information derived from the production targets, will be realised. All material assumptions underpinning production targets or forecast financial information derived from production targets continue to apply and have not materially changed. Page: 6 West African Resources Limited Table 1 M3 Significant Intercepts 0.2 g/t Cut Off Hole ID From To Interval Au g/t Dip Azi EOH Easting Northing RL Prospect TAC1203 22 29 7 0.50 -50 225 32 740929 1337336 332 M3 TAC1204 9 28 19 1.75 -50 225 33 740917 1337323 332 M3 TAC1213 0 4 4 0.49 -50 225 24 741012 1337137 330 M3 TAC1215* 28 38 10 1.45 -50 45 38 740936 1337037 332 M3 TAC1216 0 2 2 0.65 -50 45 37 740940 1337044 332 M3 TAC1216 6 9 3 2.05 -50 45 37 740940 1337044 332 M3 TAC1216 14 24 10 1.14 -50 45 37 740940 1337044 332 M3 TAC1216* 27 37 10 1.18 -50 45 37 740940 1337044 332 M3 TAC1217* 22 33 11 1.64 -50 45 33 740931 1337023 332 M3 TAC1231* 29 37 8 1.47 -50 225 37 740848 1337082 326 M3 TAC1254 3 11 8 1.59 -50 225 29 740921 1337352 329 M3 TAC1254 16 26 10 0.64 -50 225 29 740921 1337352 329 M3 TAC1260 23 26 3 0.76 -50 225 32 740917 1337379 333 M3 TAC1262 0 4 4 0.57 -50 225 38 740892 1337354 333 M3 TAC1267 20 28 8 0.27 -50 225 44 740803 1337683 342 M3 TAC1268 33 37 4 0.86 -50 225 47 740778 1337668 342 M3 TAC1274 28 32 4 0.72 -50 225 40 740731 1337681 342 M3 TAC1275 40 44 4 0.67 -50 225 46 740715 1337660 341 M3 TAC1278 18 27 9 1.38 -50 270 40 740726 1337416 345 M3 TAC1279 12 16 4 0.43 -50 270 33 740702 1337417 342 M3 TAN15-DD031 47 49 2 2.21 -50 225 100 740986 1337220 331 M3 TAN15-DD031 53 57 4 1.50 -50 225 100 740986 1337220 331 M3 TAN15-DD031 64 71 7 0.64 -50 225 100 740986 1337220 331 M3 TAN15-DD031 77 84 7 1.81 -50 225 100 740986 1337220 331 M3 * denotes ending in mineralisation All holes are RC and diamond holes. All reported intersections from the current program are assayed at either 1m or 4m composited intervals. Sample preparation and Fire Assay conducted by BIGS Ouagadougou. Assayed by 50g fire assay with AAS finish. Mineralised intervals reported with a maximum of 2 metre of internal dilution of less than 0.20g/t gold (Table 1). No top cut applied. Sample preparation and Fire Assay conducted by BIGS Ouagadougou. Assayed by 50g fire assay with AAS finish. QA/QC protocol: For RC samples we insert one blank, one standard and one duplicate for every 17 samples (3 QA/QC within every 20 samples). Table 1 Mankarga Significant Intercepts 0.2 g/t Cut Off Hole ID From To Interval Au g/t Dip Azi EOH Easting Northing RL Prospect TAN15-DD028 36 50 14 4.42 -50 225 71.5 741375 1337610 304 M1 TAN15-DD029 48 54 6 2.52 -50 225 73 741455 1337550 304 M1 * denotes ending in mineralisation All holes are diamond holes. All reported intersections from the current 2015 program are assayed at either 1m or 4m composited intervals. Sample preparation and Fire Assay conducted by BIGS Ouagadougou. Assayed by 50g fire assay with AAS finish. Mineralised intervals reported with a maximum of 2 metre of internal dilution of less than 0.20g/t gold (Table 1). No top cut applied. Sample preparation and Fire Assay conducted by BIGS Ouagadougou. Assayed by 50g fire assay with AAS finish. QA/QC protocol: For RC samples we insert one blank, one standard and one duplicate for every 17 samples (3 QA/QC within every 20 samples). Page: 7 West African Resources Limited Competent Person's Statement Information in this announcement that relates to exploration results, exploration targets or mineral resources is based on information compiled by Mr Richard Hyde, a Director, who is a Member of The Australian Institute of Mining and Metallurgy and Australian Institute of Geoscientists. Mr Hyde has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and a Qualified Person under National Instrument 43-101. Mr Hyde consents to the inclusion in this announcement of the statements based on his information in the form and context in which they appear. Forward Looking Information This news release contains "forward-looking information" within the meaning of applicable Canadian and Australian securities legislation, including information relating to West African's future financial or operating performance may be deemed "forward looking". All statements in this news release, other than statements of historical fact, that address events or developments that West African expects to occur, are "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "does not expect", "plans", "anticipates", "does not anticipate", "believes", "intends", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and similar expressions, or that events or conditions "will", "would", "may", "could", "should" or "might" occur. All such forward -looking statements are based on the opinions and estimates of the relevant management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond West African's ability to control or predic t. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. In the case of West African, these facts include their anticipated operations in future periods, planned exploration and development of its properties, and plans related to its business and other matters that may occur in the future. This information relates to analyses and other information that is based on expectations of future performance and planned work programs. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encountered if a mineral property is developed. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation: exploration hazards and risks; risks related to exploration and development of natural resource properties; uncertainty in West African's ability to obtain funding; gold price fluctuations; recent market events and conditions; risks related to the uncertainty of mineral resource calculations and the inclusion of inferred mineral resources in economic estimation; risks related to governmental regulations; risks related to obtaining necessary licenses and permits; risks related to their business being subject to environmental laws and regulations; risks related to their mineral properties being subject to prior unregistered agreements, transfers, or claims and other defects in title; risks relating to competition from larger companies with greater financial and technical resources; risks relating to the inability to meet financial obligations under agreements to which they are a party; ability to recruit and retain qualified personnel; and risks related to their directors and officers becoming associated with other natural resource companies which may give rise to conflicts of interests. This list is not exhaustive of the factors that may affect West African's forward -looking information. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information. West African's forward-looking information is based on the reasonable beliefs, expectations and opinions of their respective management on the date the statements are made and West African does not assume any obligation to update forward looking information if circumstances or management's beliefs, expectations or opinions change, except as required by law. For the reasons set forth above, investors should not place undue reliance on forward-looking information. For a complete discussion with respect to West African, please refer to West African's financial statements and related MD&A, all of which are filed on SEDAR at www.sedar.com. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Page: 8 West African Resources Limited Section 1: Sampling Techniques and Data Criteria JORC Code Explanation Commentary Sampling Nature and quality of sampling (e.g. cut channels, The Mankarga area is being drilled using Diamond Core Technique random chips, or specific specialised industry standard Drilling (DD) and Reverse Circulation (RC) drilling. The drill measurement tools appropriate to the minerals under spacing is being in-filled to a nominal 100m x 20m grid investigation, such as downhole gamma sondes, or spacing. A total program of 8000m is proposed. Holes are handheld XRF instruments, etc.). These examples angled towards 045degree or 225degreemagnetic at M3 and 120degree where should not be taken as limiting the broad meaning of possible at M5 at declinations of -50degree, to optimally intersect sampling mineralised zones. All RC samples were weighed to Include reference to measures taken to ensure sample determine recoveries. All potentially mineralised zones were representivity and the appropriate calibration of any then split and sampled at 1m intervals using three-tier riffle measurement tools or systems used. Aspects of the splitters. QA/QC procedures were completed as per industry determination of mineralisation that are Material to the best practice standards (certified blanks and standards and Public Report. duplicate sampling). In cases where `industry standard' work has been done Samples were despatched to BIGS in Ouagadougou for this would be relatively simple (e.g. `reverse circulation sample preparation, where they were crushed, dried and drilling was used to obtain 1 m samples from which 3 kg pulverised to produce a sub sample for analysis. BIGS has a was pulverised to produce a 30 g charge for fire assay'). fire assay facility in Ouagadougou where 50g fire assays, AAS In other cases more explanation may be required, such finishes and screen fire assays have been conducted. as where there is coarse gold that has inherent Historic sampling preparation and assaying was completed sampling problems. Unusual commodities or at Abilabs and SGS laboratories located in Ouagadougou. mineralisation types (e.g. submarine nodules) may Historic samples we analysed by Fire Assay method with AAS warrant disclosure of detailed information. finish. Drilling Drill type (e.g. core, reverse circulation, open- hole Reverse Circulation "RC" drilling within the resource area hammer, rotary air blast, auger, Bangka, sonic, etc.) and comprises 4.5 inch diameter face sampling hammer and details (e.g. core diameter, triple or standard tube, aircore blade drilling and hole depths range from 13m to depth of diamond tails, face- sampling bit or other type, 60m. Diamond drilling in progress comprises both NQ and whether core is oriented and if so, by what method, HQ diameter core, at holes between 75m and 350m depth. etc.). Drill Sample Method of recording and assessing core and chip RC recoveries are logged and recorded in the database. Recovery sample recoveries and results assessed. Overall recoveries are >75% for the RC; there are no Measures taken to maximise sample recovery and significant sample recovery problems. A technician is always ensure representative nature of the samples. present at the rig to monitor and record recovery. Whether a relationship exists between sample recovery RC samples were visually checked for recovery, moisture and and grade and whether sample bias may have occurred contamination. due to preferential loss/gain of fine/coarse material. The bulk of the Resource is defined by DD and RC drilling, which have high sample recoveries. The style of mineralisation, with common higher-grades, require large diameter core and good recoveries to evaluate the deposit adequately. The consistency of the mineralised intervals and density of drilling is considered to prevent any sample bias issues due to material loss or gain. Logging Whether core and chip samples have been geologically Geotechnical logging was carried out on all diamond drill and geotechnical logged to a level of detail to support holes for recovery, RQD and number of defects (per appropriate Mineral Resource estimation, mining interval). Information on structure type, dip, dip direction, studies and metallurgical studies. alpha angle, beta angle, texture, shape, roughness and fill Whether logging is qualitative or quantitative in nature. material is stored in the structure/Geotech table of the Core (or costean/Trench, channel, etc.) photography. database. The total length and percentage of the relevant Logging of diamond core and RC samples recorded lithology, intersections logged. mineralogy, mineralisation, structural (DDH only), weathering, alteration, colour and other features of the samples. Core was photographed in both dry and wet form. All drilling has been logged to standard that is appropriate for the category of Resource which is being reported. Page: 9 West African Resources Limited Sub-Sampling If core, whether cut or sawn and whether quarter, half RC samples were collected on the rig using a three tier riffle Technique and or all core taken. If non-core, whether riffled, tube splitter. All samples were dry. Sample sampled, rotary split, etc. and whether sampled wet or The sample preparation for all samples follows industry best Preparation dry. practice. BIGS in Ouagadougou for sample preparation, For all sample types, the nature, quality and where they were crushed, dried and pulverised to produce a appropriateness of the sample preparation technique. sub sample for analysis. Sample preparation involving oven Quality control procedures adopted for all sub-sampling drying, coarse crushing, followed by total pulverisation LM2 stages to maximise representivity of samples. grinding mills to a grind size of 90% passing 75 microns. Measures taken to ensure that the sampling is Field QC procedures involve the use of certified reference representative of the in situ material collected, material as assay standards, blanks, and duplicates for the including for instance results for field duplicate/second- RC samples only. The insertion rate of these averaged 3:20 half sampling. for RC. Whether sample sizes are appropriate to the grain size Field duplicates were taken on for both 1m RC splits using a of the material being sampled. riffle splitter. The sample sizes are considered to be appropriate to correctly represent the style of mineralisation, the thickness and consistency of the intersections. Quality of Assay The nature, quality and appropriateness of the assaying The laboratory used an aqua regia digest followed by fire Data and and laboratory procedures used and whether the assay for with an AAS finish for gold analysis. Laboratory Tests technique is considered partial or total. No geophysical tools were used to determine any element For geophysical tools, spectrometers, handheld XRF concentrations used in this Resource Estimate. instruments, etc., the parameters used in determining Sample preparation checks for fineness were carried out by the analysis including instrument make and model, the laboratory as part of their internal procedures to ensure reading times, calibrations factors applied and their the grind size of 90% passing 75 micron was being attained. derivation, etc. Laboratory QA/QC involves the use of internal lab standards Nature of quality control procedures adopted (e.g. using certified reference material, blanks, splits and standards, blanks, duplicates, external laboratory duplicates as part of the in house procedures. checks) and whether acceptable levels of accuracy (i.e. Certified reference materials, having a good range of values, lack of bias) and precision have been established. were inserted blindly and randomly. Results highlight that sample assay values are accurate and that contamination has been contained. Repeat or duplicate analysis for samples shows that the precision of samples is within acceptable limits. Sample preparation conducted and fire assay performed by BIGS SARL -Assayed by 50g fire assay with AAS finish. QA/QC protocol: For diamond core one blank and one standard inserted for every 18 core samples (2 QA/QC samples within every 20 samples dispatched, or 1 QA/QC sample per 10 samples despatched) and no duplicates. QA/QC protocol: For RC samples we insert one blank, one standard and one duplicate for every 17 samples (3 QA/QC within every 20 samples or 1 every 8.5 samples). Verification of The verification of significant intersections by either WAF's QP R. Hyde has verified significant intersections in Sampling and independent or alternative company personnel. diamond core and RC drilling. Assaying The use of twinned holes The verification of significant intersections by either independent or alternative Primary data was collected using a set of company standard company personnel. ExcelTM templates on ToughbookTM laptop computers Discuss any adjustment to assay data using lookup codes. The information was validated on-site by the Company's database technicians and then merged and validated into a final Access TM database by the company's database manager. Location of Data Accuracy and quality of surveys used to locate drill All drill holes have been located by DGPS in UTM grid WGS84 points holes (collar and down-hole surveys), trenches, mine Z30N. workings and other locations used in Mineral Resource Down-hole surveys were completed at the end of every hole estimation. where possible using a Reflex down-hole survey tool, taking Specification of the grid system used Quality and measurements every. adequacy of topographic control DGPS was used for topographic control. Data Spacing and Data spacing for reporting of Exploration Results The nominal drill hole spacing is 20m (northwest) by 100m Distribution Whether the data spacing and distribution is sufficient (northeast). to establish the degree of geological and grade The mineralised domains have demonstrated sufficient continuity appropriate for the Mineral Resource and continuity in both geological and grade to support the Ore Reserve estimation procedure(s) and classifications definition of Mineral Resource and Reserves, and the applied. classifications applied under the 2012 JORC Code. Whether sample compositing has been applied Historic samples have been composited to three metre lengths, and adjusted where necessary to ensure that no residual sample lengths have been excluded (best fit). WAF intends to update the Mankarga 5 Resource following the current work programs, in the first quarter of 2014. Page: 10 West African Resources Limited Orientation of Whether the orientation of sampling achieves unbiased The majority of the data is drilled to either magnetic 120degree or Data in Relation sampling of possible structures and the extent to which 300degree orientations, which is orthogonal/perpendicular to the to Geological this is known, considering the deposit type. orientation of the mineralised trend. The bulk of the drilling Structure If the relationship between the drilling orientation and is almost perpendicular to the mineralised domains. the orientation of key mineralised structures is Structural logging based on oriented core indicates that the considered to have introduced a sampling bias, this main mineralisation controls are largely perpendicular to should be assessed and reported if material. drill direction. No orientation based sampling bias has been identified in the data at this point. Sample Security The measures taken to ensure sample security Chain of custody is managed by WAF. Samples are stored on site and delivered by WAF personnel to BIGS Ouagadougou for sample preparation. Whilst in storage, they are kept under guard in a locked yard. Tracking sheets are used track the progress of batches of samples Audits or reviews The results of any audits or reviews of sampling WAF personnel and consultants have completed numerous techniques and data. site visits and data reviews since acquiring the project in 2014. No material issues were noted. A technical report located on WAF's website. Section 2 Reporting of Exploration Results Criteria JORC Code Explanation Commentary Mineral Type, reference name/number, location and ownership The Boulsa Project tenements covers over 3,700km2, Tenement and including agreements or material issues with third granting the holders the right to explore for gold. Land Tenure parties such as joint ventures, partnerships, overriding The tenements have been acquired by either direct grant to Status royalties, native title interests, historical sites, WAF or its subsidiaries or by contractual agreements with wilderness or national park and environmental settings. tenement holders. Apart from the Tanlouka Agreement The security of the tenure held at the time of reporting where Tanlouka SARL holds a 90% interest, all other vendor along with any known impediments to obtaining a agreements provide WAF with the right to obtain an licence to operate in the area. ultimate interest of 100%. All licences, permits and claims are granted for gold. All fees have been paid, and the permits are valid and up to date with the Burkinabe authorities. The payment of gross production royalties are provided for by the Mining Code and the amount of royalty to be paid for ranges from 3% ($1300). Exploration Done Acknowledgment and appraisal of exploration by other Very little exploration has been carried out over greater by Other Parties parties. project the tenement prior to WAF's involvement which commenced in 2008, with the exception of the Tanlouka Permit. The area comprising the Tanlouka Permit has been held by Channel Resources Ltd since the early 1990's. Work recommenced in earnest on the Tanlouka Permit in 2010. WAF acquired Channel Resources Ltd on January 17th 2014. Available historic records and data were reviewed by both WAF during Due Diligence prior to the acquisition. Geology Deposit type, geological setting and style of The Boulsa Project straddles some 70km strike length of the mineralisation. Manga-Sebba greenstone belt, which bifurcates and trends northeast and east-northeast respectively from southern- central Burkina Faso into Niger over some 450km. The south-eastern portion of the project area covers the southern extension of the Fada N'Gourma Belt. Lithologies comprise volcano-plutonic bodies including amphibolised basalts with amphiboloschists, andesites and basalts, rhyolites and rhyodacites, brecciated tuffs, and gabbroic bodies including pyroxenite and serpentinite. Gold mineralisation in the project area is mesothermal orogenic in origin and structurally controlled. The project also contains shear hosted porphyry related copper-gold-molybdenum mineralisation on the Sartenga Permit which is believed to be unique in West Africa." Page: 11 West African Resources Limited Drill hole A summary of all information material to the Intercepts that form the basis of this announcement are Information understanding of the exploration results including a tabulated in Table 1 in the body of the announcement and tabulation of the following information for all Material incorporate Hole ID, Easting, Northing, Dip, Azimuth, Depth drill holes: and Assay data for mineralised intervals. Appropriate maps and plans also accompany this announcement. o easting and northing of the drill hole collar o elevation or RL (Reduced Level elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. Data aggregation In reporting Exploration Results, weighting averaging All intersections are assayed on one meter intervals No top methods techniques, maximum and/or minimum grade cuts have been applied to exploration results. Mineralised truncations (e.g. cutting of high grades) and cut-off intervals are reported with a maximum of 2m of internal grades are usually Material and should be stated. dilution of less than 0.2g/t Au. Higher grade zones are Where aggregate intercepts incorporate short lengths reported with a maximum of internal dilution of less than of high grade results and longer lengths of low grade 2g/t Au of internal dilution. Mineralised intervals are results, the procedure used for such aggregation should reported on a weighted average basis. be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. Relationship These relationships are particularly important in the The orientation of the mineralised zone has been between reporting of Exploration Results. established and the majority of the drilling was planned in mineralisation If the geometry of the mineralisation with respect to such a way as to intersect mineralisation in a perpendicular widths and the drill hole angle is known, its nature should be manner. However, due to topographic limitations some intercept lengths reported. holes were drilled from less than ideal orientations. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. `down hole length, true width not known'). Diagrams Appropriate maps and sections (with scales) and The appropriate plans and sections have been included in tabulations of intercepts should be included for any the body of this document. significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Balanced Where comprehensive reporting of all Exploration All grades, high and low, are reported accurately with "from" reporting Results is not practicable, representative reporting of and "to" depths and "hole identification" shown. both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. Other substantive Other exploration data, if meaningful and material, Preliminary metallurgical test work has been completed, exploration data should be reported including (but not limited to): with excellent results. Gold recoveries exceed 95% from geological observations; geophysical survey results; oxide bottle roll tests, exceed 92% for sulphide bottle roll geochemical survey results; bulk samples size and tests and a significant proportion of the gold is recoverable method of treatment; metallurgical test results; bulk by gravity concentration. Additional metallurgical test work density, groundwater, geotechnical and rock is planned. characteristics; potential deleterious or contaminating substances. Further work The nature and scale of planned further work (e.g. tests Further infill drilling is planned and is ongoing, aimed at for lateral extensions or depth extensions or large-scale increasing the amount of resource categorized as Indicated, step-out drilling). as well as upgrading some of the Indicated Resource to Diagrams clearly highlighting the areas of possible Measured status. Drilling aimed at increasing the Resource extensions, including the main geological below the current depth extent is also planned. A figure interpretations and future drilling areas, provided this showing proposed work programs is included in the body of information is not commercially sensitive. this report. Page: 12