Feasibility study confirms Houndé economic potential
PERTH (miningweekly.com) – A feasibility study into dual-listed Endeavour Mining’s Houndé gold project, in Burkina Faso, has confirmed the project’s economic potential.
The ASX- and TSX-listed Endeavour reported on Thursday that Houndé could achieve yearly production of some 178 000 oz over an eight-year life-of-mine (LoM), with the project producing a total of 1.44-million ounces.
The project currently has a proven and probable reserve of some 25-million tonnes, grading 1.95 g/t gold.
The feasibility study estimated that an initial capital investment of A$315-million would be required, with LoM sustaining capital estimated at A$62-million, with a further A$26-million assigned to rehabilitation and closure costs.
“Houndé is a strong gold project with potential to produce around 180 000 oz/y at an all-in sustaining cost of under A$800/oz. At a gold price of A$1 300/oz, the project has an attractive after-tax internal rate of return of 22%, illustrating strong cash flow generation,” said Endeavour CEO Neil Woodyer.
He noted that the project would also benefit from excellent infrastructure, the company’s current Agbaou mine building expertise, and its Burkina Faso operating experience at the Youga mine.
The project permitting process has now started and would take six to nine months to complete. Engineering, procurement and construction of the Houndé operation would take an estimated 21 months from board approval, to first gold.
“While work continues on obtaining the Houndé mining permit, we are evaluating how best to integrate Houndé into Endeavour’s production growth plans,” Woodyer said.
The company’s gold production was forecast to exceed 400 000 oz during 2014, as production started at the Agbaou mine, in Côte d’Ivoire during the first quarter of 2014.
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