Green light for Endeavour Mining's gold project in Burkina Faso
Endeavour Mining received its final signed mining permit to to develop and operate the Houndé gold project in Burkina Faso.
The mining permit was previously approved by the Council of Ministers and has now been signed as a mining decree by the President of Burkina Faso, and other governmental authorities.
Endeavour says Houndé has the potential to add approximately 180,000 ounces per year of production over an initial 8 year mine life. Endeavour is updating the project's economics study.
The mining permit is valid for 20 years from February 5, 2015 and can be renewed for additional periods of 5 years. The project is expected to benefit from the fiscal and other provisions of the current Mining Code (2003).
In a reaserch note, Haywood Securities said the news is positive but notes some concerns such as finding financing at current gold prices and geopolitical issues.
"While we believbe Burkina Faso will remain a choice destination for operating projects, we are concerned that there is a potential for continued uncerstainty leading up to proposed presidential elections in the October 2015."