Endeavour Mining begins construction of new African gold mine
Canada’s Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) has began construction at its Hounde project in Burkina Faso, which is forecast to produce about 1.9 million ounces of gold over a 10-year mine life.
Shares soared on the news and were trading 7.6% higher to $13.77 at 10:30 am ET. So far this year, Endeavour Mining’s value has climbed over 80%.
Building the mine would cost an initial $328 million to build, the Vancouver-based firm said. The project will be the second low-cost gold mine Endeavour has in West Africa, after it grabbed the close-by Karma mine last month through a friendly acquisition of fellow Canadian miner True Gold (TSX-V: TGM)
In total, Endeavour owns five mines in Côte d’Ivoire, Ghana, Mali and Burkina Faso, and could produce between 575,000 and 600,000 ounces of gold this year at all-in sustaining costs ranging from $870 to $920 per ounces.
Once Hounde is operational, Endeavour will add 190,000 ounces per year.
In a separate statement, True Gold announced that Karma mine, 90% owned by Endeavour once the merger finalizes, has poured its first gold today.
Last year, Endeavour Mining produced 517,000 ounces of gold at all-in sustaining costs of $922 per ounce.