West African Resources up after keeping a lid on costs during solid quarter

Shares in West African Resources rose after the Burkina Faso-focused gold miner posted a solid June quarter result with only a modest increase in operating costs.

The Richard Hyde-led miner reported output of 64,114 ounces of gold in the recent quarter from its flagship Sanbrado mine, down slightly from the 65,907oz produced in the March quarter in line with its mine plan.

But all-in sustaining costs rose only marginally from $US932/oz ($1380.54/oz) to $US959/oz ($1420.53/oz).

Mr Hyde said the company had generated $120 million of operating cashflow during the quarter and ended with $222 million in cash reserves

The company also reported high-grade drilling results from its MV3 prospect, including 13m at 5.3g/t, which Mr Hyde said was shaping up as an outstanding open pit opportunity just 6km north-west of Sanbrado.

West African will also release a feasibility study this quarter on its advanced 6.8Moz Kiaka gold project 45km south of Sanbrado.

Early works have already begun at Kiaka, which West African acquired from B2 Gold and partner GAMS-Mining for $US100m in cash, shares and royalties in October last year.

West African shares closed up 4.5¢, or 4 per cent, to $1.22.