As part of its aim to expand its West African presence, Canada-based TSX- and ASX-listed gold miner Endeavour Mining announced in June that it had started production at its Segala underground mine, in south-western Mali, which comprises half of the Tabakoto deposit’s total resources.

Endeavour has also been granted a mining permit for its Kofi Nord project, which covers eight gold deposits at Tabakoto.

Endeavour Mining business development senior VP Doug Reddy tells Mining Weekly that the two milestones strengthen the company’s presence in West Africa, where it has four operating gold mines.

“The mining permit acquired for the Kofi expansion project includes the Kofi C deposit, which is now incorporated into the Tabakoto production schedule for 2015.

“The Segala and Kofi deposits provide additional feed sources and exploration upside for the Tabakoto milling complex, which doubled in capacity in 2013,” Reddy explains.

Segala Underground Mine
Endeavour acquired the Segala mine as part of the acquisition of the Tabakoto mine complex in 2012. The mine is accessed through a spiral decline that extends from the mined-out Segala openpit and follows the footwall of a steeply dipping orebody. Mineralisation occurs as a series of closely spaced parallel zones that comprise the main orebody, which, on average, is 20 m wide.

A long-hole transverse mining method, with a cemented rock fill, is used. This method allows for the ore to be mined in multiple passes in areas where the orebody is wide.

The mine’s decline is currently more than 1 290 m in length and extends vertically to more than 200 m below surface. Development takes place at levels spaced 20 m apart and more than 3 750 m have been completed on the upper four levels, which will provide access to four stopes by the end of quarter three.

Eight stopes will be active during the different mining stages of mucking, drilling, cable bolting and filling, and when the production is fully ramped up. The ore is hauled from the mine in 30 t trucks and hauled by 18 t trucks to the Tabakoto plant, which is 5 km away.

Endeavour also transitioned from contractor to owner mining in the Tabakoto mine. “We have retained more than 300 employees from the contractor to ensure a high level of workforce continuity. We are also focusing on training the Mali workforce,” states Reddy.

He adds that the company expects to realise cost benefits from this transition by the third and fourth quarters of this year.

Kofi Permit
The Kofi Nord permit incorporates eight Kofi mineral deposits, with an indicated mineral resource of 8.065-million tons at 2.31 g/t of gold for 599 100 oz and an inferred mineral resource of 10.536-million tons at 1.71 g/t of gold for 577 600 oz.

As part of the evaluation of the Kofi C deposit, Endeavour completed geotechnical, metallurgical, environmental and social investigations. Studies continue on the Kofi B deposit and will progress to the other deposits on the Kofi property.

The Kofi C deposit adds 1.552-million tons at 4.26 g/t of gold for 213 000 oz of probable mineral reserves to Tabakoto and can possibly allow for the incorporation of the other Kofi deposits into the production schedule, states Reddy.

The company also plans to construct a 38 km haul road, which is scheduled for early 2015, and is part of the estimated capital expenditure of about $13-million for Kofi C.

Endeavour owns 83.75% of the Kofi Nord project, while the Mali government holds 10% and a private party the remaining 6.25%. Deposits identified to date are within 10 km and 40 km of the Tabakoto gold mill.

Projects in Progress
The Agbaou gold mine, in Abidjan, Côte d’Ivoire, poured its first gold bar ahead of schedule and within budget in November last year and started commercial production in January. It boasts an average yearly gold production of 100 000 oz in the eight years of its life.

The Nzema gold mine, west of Accra, in Ghana, began full-scale production in April 2011 and produced 103 464 oz of gold in 2013. The mine has an openpit contractor and features a processing plant that processes at 1.6-million to 2.1-million tons a year. The plant is connected to Ghana’s national power grid.

Endeavour’s Youga gold mine, located south-east of Ouagadougou, in Burkina Faso, has been in production since 2008 and produced 89 448 oz of gold in 2013.

The Tabakoto gold mine complex, of which Segala forms part, was operated by Avion Gold from 2009 until it was acquired by Endeavour in 2012. The mine produced 125 231 oz of gold in 2013.

“With the Segala underground mine in operation, we are able to feed the Tabakoto plant from another source of underground ore and reduce the amount of low-grade stockpile that we have been using,” says Reddy.

Global Challenges
Although the Agbaou gold mine has been producing at higher-than-expected rates, and production at Tabakoto has been expanded, the company is not immune to the effects of the many challenges currently facing the gold sector.

Reddy points out that gold traded at low prices last year but adds that, while the price decline has slowed the pace of industry activity, it has also presented an opportunity for companies to realistically think through some projects.

“We had already started construction of Agbaou when the decline began, but we knew it would help bring a lower-cost mine into our group, so we continued with construction.”

Prior to the drop in the gold price, Endeavour had been working on reducing production costs at each of its operations through instituting group buying solutions and common accounting systems, as well as transitioning to underground mining at Tabakoto, which Reddy says has helped to lower costs and lessen the effects of the low gold price.

Reddy highlights that there have been some positive achievements in the last year – in Côte d’Ivoire, for instance, government was supportive during the construction of Agbaou, he says.

“In spite of the activity in Mali in the last few years, the western part of the country has remained stable and the mines, including Tabakoto, have not been affected,” he concludes.