PERTH (miningweekly.com) – Dual-listed gold miner Endeavour Mining has reported a record gold production of 88 445 oz in the third quarter of 2013.

Production during the three months to September was up 17% on the previous quarter, with the increase driven by the Tabakoto mill expansion, in Mali.

“We are very pleased to have achieved record gold production of over 88 000 oz as we had our first full quarter with the expanded Tabakoto mill. We have continued to make progress in reducing our cost level with an all-in sustaining cost in the third quarter of A$1 057/oz,” said CEO Neil Woodyer.

He noted that year-to-date production was 237 520 oz, with all-in-sustaining costs reaching A$1 086/oz, putting the company on track to deliver within its guidance of between 315 000 oz and 330 000 oz of gold for the full year, with an all-in-sustaining cost of between A$1 055/oz and A$1 155/oz.

During the quarter under review, production at the Tabakoto mine increased by 48% on the previous quarter, owing to higher throughput on the back of the mill expansion.

Tabakoto produced 40 522 oz of gold during the three months to September.

Production at the Nzema mine, in Ghana, also improved during the quarter, reaching 27 894 oz, compared with the 24 053 oz produced in the previous quarter, as the grade of the ore milled increased.

At the Youga gold mine, in Burkina Faso, Endeavour produced 20 029 oz of gold during the quarter, which was slightly below the 23 963 oz produced in the second quarter of the year.

Endeavour noted that production at Youga was impacted by heavy rains in September, which interrupted mining activities in the main pit.

Meanwhile, construction at the Agbaou mine was also continuing, with Woodyer pointing out that the project would be operational by early 2014.

“In late October, we achieved a significant milestone with the start of mining activities at Agbaou. We are on track for commercial production in the first quarter of 2014. The increase in the corporate debt facility in July has ensured we have the resource required to complete Agbaou construction and other investments to lower operating costs.”

Woodyer said that as Endeavour neared the completion of the Agbaou construction, the Hounde project was also progressing into the permitting phase.

“Hounde is an economically robust project requiring A$315-million of upfront capital for average annual production of around 180 000 oz, over eight years, at an all-in-sustaining cost of less than A$800/oz. At A$1 300/oz gold price, and without the benefit of leverage, the Hounde project generates an attractive after tax internal rate of return of 22%.”

Woodyer added that based on these results, Endeavour was now evaluating how best to integrate the project into the company’s production growth plans.