Endeavour Mining to pour first gold out of new African mine next year
Shares in Canada’s Endeavour Mining (TSX:EDV) (OTCQX:EDVMF) were up more than 2% Tuesday morning after the company said construction of its Houndé mine in Burkina Faso was progressing on time and on-budget, with first gold pour expected during the fourth quarter of 2017.
The project, which is forecast to produce about 1.9 million ounces of gold over a 10-year mine life, will be the second low-cost gold mine Endeavour has in West Africa and the company’s flagship operation.
“We are very pleased to have successfully achieved our first set of key project milestones safely, ahead of schedule and on-budget, despite the wet-season being upon us,” Jeremy Langford, EVP Construction Services Group of Endeavour, said in the statement. “I am proud that this project will deliver significant economic benefits to the local area and the whole of Burkina Faso.”
In March, the Vancouver-based firm grabbed the close-by Karma mine through a friendly acquisition of fellow Canadian miner True Gold (TSX-V: TGM).
In total, Endeavour now 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 ounce.
Once the open pit Houndé mine is operational, Endeavour will add 190,000 ounces to its gold output per year.
Endeavour estimates it employ up to 1,800 people during Houndé’s construction phase and 470 once it reaches commercial production. The company aims to have a workforce made of 90% Burkinabe nationals, with a focus on increasing female employment in the region.
Houndé’s initial capital cost is estimated at $328 million, including $46 million needed in mining equipment.
Endeavour’s stock was up 2.27% in Toronto to Cdn $22.98 at 9:37 am ET and it has jumped four-fold since the beginning of the year.
In 2015, the company produced 517,000 ounces of gold at all-in sustaining costs of $922 per ounce.
Image courtesy of Endeavour Mining