West African Minerals (LON:WAFM) is mulling which of two deposits in Cameroon should be its focus in the current year.

The discovery of a new set of targets at Sanaga, 10km from the main Yaoundé-Douala rail line and 60km from Douala port in Cameroon, in addition to the previously reported Binga resource, presents WAFM with two potential start-up opportunities in coastal Cameroon, said Brad Mills, executive chairman.

“These projects are ideally suited to develop rapidly into cash flow generating assets with anticipated low operational and capital costs and ease of access to shipping,” he added.

“Our current expectation is that Sanaga may have a lower overall stripping ratio and more immediate access to rail and port facilities.”

“If this deposit has equal or better grades and metallurgy to Binga, then we will modify the 2014 work programme in the second half of the year to complete resource drilling and a PEA on this project in preference to Binga.”

West African said it had the funds to take either Binga or Sanaga towards a 60-100mt mineral resource estimate by December 2014 and a preliminary economic assessment (PEA) in the first quarter of 2015.

“Particularly in the current weak iron ore pricing environment, a critical factor for new project start-ups will be the access to port and other transport infrastructure to be competitive in the global seaborne iron ore trade.

The discovery at Sanaga potentially provides the opportunity of a rapid start-up operation in view of its proximity to available existing transport infrastructure.

Losses for the year to March were £8.37mln (£3.1mln), while cash was more than £7mln.