Ann: WAF hits extensive visible gold in 1km hole at M1 South, page-30

According to Canadian capital markets firm Sprott, recent drilling news from West African Resources at its Sanbrado project in Burkina Faso is nothing short of "phenomenal". In a note headlined; "Kaboom - ‘wildcat' deep hole hits thick visible gold; unresponsive ASX price offers opportunity for new and existing investors", Sprott indicated a big increase to resources and reserves is on the cards via a step out hole hitting "generally continuous high-grade gold mineralization from 865-895m down-hole". And Sprott believes the potential for corporate action has increased with the success. "We think the only reason the company hasn't been subject to a bid is that although equity investors can surmise depth extensions, potential buyers see that as unproven and need more evidence," Sprott said.  "Hence, the company has now taken a risk, which has paid off admirably in our view. "With 1 million oz of underground feed now achievable, we think M&A may well come back on the table for West African Resources." Sprott was involved in a West African Resources fund raising back in May when circa-$35 million  was banked from investors who bought new shares priced at 32c each.  Sprott and Australian firm Hartleys were the lead managers in that raising. West African Resources is updating its feasibility work. It recently said "a significant improvement in project economics versus the June 2018 feasibility study is expected by delivering more gold in the early years of the operation from an accelerated mine schedule with a relatively small change in the overall project capital requirements". Sanbrado is currently slated as a 211,000 ounce per annum operation, for the first five years, costing US$185 million to get up and running. All-in sustaining costs in the first five years were put at $640 per ounce. The company also recently said it was on track to appoint a debt financier or banking syndicate following credit approval from both groups before the end of the current year. Shares in West African Resources were up 3.5% to 29.5c in afternoon trade, capitalising the company at $204 million.