West African Resources has awarded an underground mining contract to Byrnecut at its Sanbrado gold project in Burkina Faso, West Africa.
The underground development will access high-grade, free-milling gold mineralisation directly beneath the proposed M1 South open pit.
Byrnecut will assist the ASX-listed gold developer with an underground portal establishment for the M1 South open pit, decline and level development, ore driving and stope production.
The five-year contract is worth $US110 million ($152 million), and will help West African accelerate its cash flow.
West African managing director Richard Hyde said, “The underground mining contract is a key operational contract for Sanbrado, and its award follows the completion of a competitive tender process and extensive due diligence process examining safety, experience and capabilities.
“We are very pleased to award the underground mining contract to Byrnecut who have a long history providing underground mining services globally and have current operating experience in West Africa.”
Sanbrado will be Byrnecut’s second site in Burkina Faso and fifth project in West Africa.
Byrnecut will commence Sanbrado’s portal establishment in March 2019, immediately after the excavation of the box cut, which remains on track for completion in late February next year. Mobilisation activities will commence in December 2019.
West Africa will fund the contract via a deferred payment plan of up to $US10 million, while debt funding for Sanbrado will be finalised this year.