West Africa reclaims status as top gold mining and investment destination
After being hit hard by the Covid years, West Africa is once again climbing up the rankings of top gold mining destinations.
Prior to the reduction of global funding in African destinations during Covid, West Africa was seen as the golden child with numerous world-class discoveries and emerging operations.
Now, the region is again attracting significant investment as miners both large and small continue to uncover sizeable new deposits.
The gold sector’s ‘new caviar’
A new research note from 3L Capital has described West Africa as the “new caviar” of the gold sector—an “acquired taste but holds rich rewards”.
According to the note, gold production in West Africa has increased 57% from 240 tonnes in 2010 to 531t in 2022, or 14.6% of global output.
3L Capital says that from 2010 to 2020, West Africa proved itself the premier destination for gold discoveries, unearthing a staggering 67 million ounces of gold at an average grade of 1.5 grams per tonne, well above North America’s 44Moz during the same period.
The top three contributors within the region are Burkina Faso, Côte d’Ivoire and Mali—each a hotspot for significant discoveries during that time.
Some of the largest gold mines in the world are located in the region – operated by senior producers like Newmont, Barrick and Kinross – and it is now estimated that West Africa receives the most gold exploration spend after Australia and North America.
Rapid road to development
3L Capital also noted that, with 44 gold projects built since 2010, West Africa boasts the shortest construction timeline—averaging 1.7 years.
Two examples are Endeavour’s Lafigué project – where initial drilling started in 2018, construction commenced in Q4 2022 and the first gold pour is expected in June 2024 – and Tietto’s Abujar project, where initial drilling started in 2016, construction began in January 2022 and the first gold was poured in January 2023.
Australian juniors are playing their part in unearthing golden riches in the region.
West African Resources (ASX: WAF) is an emerging mid-tier gold producer, targeting over 400,000ozpa production from 2025 from its Sanbrado gold operations and Kiaka gold project in Burkina Faso.
Côte d’Ivoire top-rated
The nation of Côte d’Ivoire is becoming one of the most important West African destinations, with its production growing by 518% since 2010.
Côte d’Ivoire’s production is forecast to hit 50t in 2023 and 55t in 2024.
A recent study by the Fraser Institute ranked the country as the most favourable jurisdiction for mining investment in the sub-region.
Aurum Resources’ success
The drilling success of Aurum Resources (ASX: AUE) since it acquired the Boundiali gold project in Côte d’Ivoire late last year is a perfect example of the riches the nation has to offer.
Aurum has made further big hits at Boundiali in recent months, with drilling intersecting a new wide, high-grade zone in its ongoing BD Target 1 program.
Aurum has now drilled multiple 50-plus gold gram metre intercepts over 300m of strike at the BD Target 1.
The company is about to expand its drilling fleet to six as it ramps up its exploration work in the lead-up to releasing its maiden mineral resource estimate for Boundiali later this year.
Turaco Gold (ASX: TCG) is another ASX-listed gold exploration company in Côte d’Ivoire with a highly prospective Birimian greenstone terrain tenement package proximal to major mines and discoveries in the region.