Endeavour Mining Starts Construction of Its Hounde Gold Project, Burkina Faso
[Click image to enlarge]
Endeavour Mining has entered the construction phase of development at its 90 percent-owned Houndé Project in Burkina Faso.
The Houndé Project is expected to deliver average production of 190,000 ounces per year over a 10-year mine life at an AISC of US$709/oz, based on current reserves. The project is an open pit mine with a 3.0Mtpa gravity circuit/carbon-in-leach plant. The initial capital cost is estimated at $328 million, inclusive of $47 million for the owner-mining fleet. The project is permitted to commence operations and early earthworks have begun.
“With the ramp-up of Karma soon underway, and our operations delivering a strong performance, we are now well positioned to build the Houndé project, which will further lift the overall quality of our portfolio. Once in production, it will become our flagship low-cost mine and will rank amongst West Africa’s top tier cash generating mines. Furthermore, Houndé will benefit both from our construction track-record, demonstrated most recently at Agbaou, and our team’s operating experience in Burkina Faso,” said Neil Woodyer, CEO of Endeavour.
“The project is fully-funded based on our expected pro-forma cash position following the completion of the True Gold acquisition, the mine equipment financing, and the undrawn portion of our revolving credit facility. However, rather than draw on our revolving facility, our objective is to fund the remaining capital needs from free cash flow. We have therefore prudently implemented a short-term gold revenue protection program to secure and de-risk the necessary cash flows, providing comfort even if the gold price were to fall to $1,000/oz.,” added Woodyer.
To read more details in the company’s press release, CLICK HERE
About Endeavour
Endeavour Mining is a TSX-listed intermediate gold mining company which operates 4 West African mines in Côte d’Ivoire, Mali, and Ghana. In 2016, it expects to produce between 535,000 and 560,000 ounces at an all-in sustaining cost of US$870 to US$920 per ounce, after adjustment of the recent Youga sale and excluding the Karma mine (where the transaction with True Gold is expected to close at the end of April 2016). Endeavour Mining is focused on effectively managing its existing assets to maximize cash flow as well as pursuing organic and strategic growth opportunities that benefit from its management and operational expertise.
To stop by Endeavour’s website, CLICK HERE
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2016 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)
