PERTH (miningweekly.com) – A 34% increase in the estimated mineral reserve at the Houndé project, in Burkina Faso, has resulted in greater output expectations and a longer mine life, owner Endeavour Mining revealed on Friday.

The ASX- and TSX-listed miner said that an expansion of the Vindaloo deposit, and the inclusion of two new deposits within 14 km of the proposed plant site, had resulted in the Houndé mineral reserve increasing to 2.1-million ounces.

“We invested A$6.7-million in the Houndé programme during 2014, while we progressed the mine permitting phase. This has resulted in a 523 000 oz addition to the proven and probable reserve, or a 34% increase, for a cost of around A$13 a discovered ounce,” Endeavour CEO Neil Woodyer said.

He pointed out that the enlarged reserve would result in total gold production of about 1.9-million ounces, over a ten-year mine life, compared with the originally estimated 1.4-million ounces over an eight-year mine life.

The internal rate of return has also increased from the previously estimated 22%, to between 28% and 35%, with a gold price ranging between A$1 200/oz and A$1 300/oz, while the project’s net present value had been estimated at A$359-million.

Meanwhile, Woodyer noted that the mining permit was received in February this year, and the construction services team was now preparing for a construction decision.

“We have had the upfront capital cost estimate confirmed at A$325-million and a detailed construction plan has been completed. We are now focusing on refining the Houndé operations plan, which now includes the updated mine plan with the 2014 exploration additions.

“We are also reviewing operating costs in the context of reduced energy costs and the benefits of local currency rate devaluation. The strong project economics across a range of gold price assumptions highlights the significant value of Houndé to Endeavour shareholders,” he added.

Meanwhile, Endeavour on Friday also announced a net 412 000 oz increase to its global mineral reserves, compared with the end of 2013 figures, with estimates now standing at 4.5-million ounces.

With the depletion of mining of some 458 000 oz during the 2014 year, the total exploration additions reached 870 000 oz.

Woodyer pointed out that the company had spent about A$2.1-million on exploration at the Agbaou mine, in Côte d'Ivoire, and a further A$9.2-million at the Tabakoto operation, in Mali, to add to the reserves.